TTM Technologies, Inc. Announces Closure of Dallas, Oregon, Facility
SANTA ANA, CA - April 26, 2006 - TTM Technologies, Inc. (Nasdaq: TTMI), a
leading manufacturer of time-critical and technologically advanced printed circuit
boards, today reported results for the first quarter of 2006.
First quarter 2006 net sales increased $9.6 million, or 15 percent, to a record
$72.7 million from $63.1 million in the fourth quarter of 2005 and increased $13.8
million, or 23 percent, from $58.9 million in the first quarter of 2005. The sequential
increase, from the fourth quarter of 2005, resulted primarily from improved demand
as well as favorable quick-turn pricing trends.
For the first quarter of 2006, quick-turn business represented 21 percent of net
sales, compared to 22 percent for the fourth quarter of 2005 and 21 percent for
the first quarter of 2005.
Gross margin increased to 27.8 percent for the first quarter of 2006 from 23.8 percent
in the fourth quarter of 2005 and 23.0 percent for the first quarter of 2005. Gross
margin benefited from higher prices as well as better absorption of fixed costs
due to increased production.
General and administrative expense, including amortization of intangibles, was $3.9
million in the first quarter of 2006, an increase from $3.1 million in the fourth
quarter of 2005 and $3.7 million in the year-ago period. The increase was primarily
due to incentive compensation and stock-based compensation expense.
As a result of strong revenue growth and higher profitability, TTM posted operating
income of $13.0 million for the first quarter of 2006, up from $8.8 million for
the fourth quarter of 2005 and $6.8 million for the first quarter of 2005.
Net income for the first quarter of 2006 was $8.8 million, or $0.21 per diluted
share, compared with $19.0 million, or $0.46 per diluted share, for the fourth quarter
of 2005, and $4.5 million, or $0.11 per diluted share, for the first quarter of
2005. Net income for the fourth quarter of 2005 included a $12.7 million, or $0.31
per diluted share, benefit from a reduction of the deferred income tax asset valuation
EBITDA (earnings before interest, taxes, depreciation and amortization) increased
to $16.7 million for the first quarter of 2006 from $12.5 million for the fourth
quarter of 2005 and $9.7 million for the first quarter of 2005.
In the first quarter of 2006, TTM generated cash flow from operations of $9.8 million,
enabling it to fund net capital expenditures of $3.3 million while expanding its
cash and short-term investments to a total of $90.5 million, an increase of $8.1
million from year-end 2005 levels.
"TTM continues to capitalize on strong industry conditions with solid demand across
multiple market segments, especially in networking and communications," said Kent
Alder, President and CEO of TTM Technologies. "We significantly increased production
at each of our facilities during the first quarter. We're particularly pleased with
TTM's industry-leading earnings, strong cash flow and margin expansion."
For the second quarter of 2006, TTM is estimating further gains, with revenues in
a range of $73 million to $77 million and earnings in a range of $0.20 to $0.24
per diluted share
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.
The company will conduct a conference call to discuss its first-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 May 3, 2006, on the company's website,
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
First Quarter 2006 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.