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TTM Technologies Inc. Reports Fourth Quarter and Full Year 2005 Results

for immediate release

SANTA ANA, CA - February 8, 2006 - TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical and technologically advanced printed circuit boards, today reported results for the fourth quarter of 2005.

Fourth-Quarter Results
Fourth quarter 2005 net sales increased $2.1 million, or 4 percent, to $63.1 million from $61.0 million in the third quarter of 2005 and increased $3.9 million, or 7 percent, from $59.2 million in the fourth quarter of 2004. The sequential increase, from the third quarter of 2005, resulted from favorable pricing and demand trends.

Quick-turn business represented 22 percent of net sales in the fourth quarter of 2005, compared to 21 percent for both the third quarter of 2005 and the fourth quarter of 2004.

Gross margin of 23.8 percent for the fourth quarter of 2005 increased from 23.2 percent in the third quarter of 2005 but decreased from 24.6 percent for the fourth quarter of 2004.

General and administrative expense of $3.1 million in the fourth quarter of 2005 decreased from $5.2 million in the third quarter of 2005 and $3.3 million in the year-ago period. G&A expense in the third quarter of 2005 included a $2.0 million accrual related to an agreement in principle to resolve a customer dispute concerning goods shipped in 2002 and 2003.

TTM posted an operating profit of $8.8 million for the fourth quarter of 2005, up from $5.9 million for the third quarter of 2005 and $8.2 million for the fourth quarter of 2004.

Net income for the fourth quarter of 2005 was $19.0 million, or $0.46 per diluted share, compared with $4.1 million, or $0.10 per diluted share, for the third quarter of 2005 and $6.8 million, or $0.16 per diluted share, for the fourth quarter of 2004. Based on the company's consistent, strong earnings performance, TTM reduced its deferred income tax asset valuation allowance, thereby recording a reduction in its income tax expense, in the fourth quarters of 2004 and 2005. Earnings per diluted share included $0.31 and $0.02, respectively, in the fourth quarter of 2005 and the fourth quarter of 2004 due to the reversal of the valuation allowance. Net income for the third quarter of 2005 included a $1.2 million, or $0.03 per diluted share, accrual for the resolution of a customer dispute.

EBITDA (earnings before interest, taxes, depreciation and amortization) for the fourth quarter of 2005 was $12.5 million, an increase from $9.1 million for the third quarter of 2005 and $11.0 million for the fourth quarter of 2004.

In the fourth quarter of 2005, TTM generated cash flow from operations of $12.6 million, enabling the company to fund net capital expenditures of $1.6 million while expanding its cash and short-term investments by $11.2 million to a total of $82.4 million.

"Market conditions were solid in the fourth quarter, with favorable pricing and demand trends," said Kent Alder, President and CEO of TTM Technologies. "Based on our successful time and technology strategy, we continue to expand our customer base and post industry-leading profitability."

Full-Year Performance
Net sales for 2005 were essentially flat at $240.2 million, compared to $240.7 million for 2004. Net income increased to $30.8 million, or $0.74 per diluted share, in 2005, compared to $28.3 million, or $0.68 per diluted share, in 2004. The reversal of the deferred income tax asset valuation allowance accounted for $12.7 million, or $0.31 per diluted share, of TTM's 2005 net income and $1.2 million, or $0.03 per diluted share, of TTM's 2004 net income. "Despite pricing pressure, start-up costs associated with the Chippewa Falls expansion and higher Sarbanes Oxley costs at the beginning of the year, we were pleased with our performance for 2005," said Alder.

Outlook "We enter 2006 optimistic about the favorable market conditions and TTM's ability to execute our strategy, gain market share, and deliver superior returns," concluded Alder. For the first quarter of 2006, TTM is estimating revenues of $67 million to $71 million and earnings of $0.16 to $0.20 per diluted share. The company expects to record approximately $300,000 in stock-based compensation cost in the first quarter of 2006 due to the adoption of FAS 123R.

TTM Technologies, Inc. is a leading supplier of time-critical and technologically advanced printed circuit boards to original equipment manufacturers and electronics manufacturing services companies. TTM stands for time-to-market, representing how the company's time-critical, one-stop manufacturing services enable customers to shorten the time required to develop new products and bring them to market.

Conference Call/Webcast
The company will conduct a conference call to discuss its fourth-quarter performance and outlook today at 4:30 p.m. Eastern/1:30 p.m. Pacific time. The call will be simulcast and available for replay until Wednesday, February 15, on the company's Web site, www.ttmtech.com.

This release contains forward-looking statements that relate to future events or performance. These statements reflect the company's current expectations, and the company does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, the company's dependence upon the electronics industry, the company's dependence upon a small number of customers, general economic conditions and specific conditions in the markets TTM addresses, the unpredictability of and potential fluctuation in future revenues and operating results, increased competition from low-cost foreign manufacturers, and other "Risk Factors" set forth in the company's most recent SEC filings.

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TTM Technologies, Inc. Reports Fourth Quarter 2005 Results

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding TTM Technologies' business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

 

 

Company

TTM Technologies
(ticker: TTMI, exchange: NASDAQ)

Release Info

News Release:
02/08/20006

Contact

Steve Richards
Chief Financial Officer 714/241-0303