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TTM Technologies, Inc. Reports Second Quarter 2006 Results

for immediate release

SANTA ANA, CA - July 26, 2006 - TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical and technologically advanced printed circuit boards, today reported results for the second quarter of 2006.

Second-Quarter Results
Second quarter 2006 net sales increased $4.0 million, or 5.5 percent, to a record $76.7 million from $72.7 million in the first quarter of 2006 and increased $19.5 million, or 34.0 percent, from $57.2 million in the second quarter of 2005. These favorable comparisons resulted from strong pricing and rising demand.

For the second quarter of 2006, quick-turn business represented 19.5 percent of net sales, compared to 20.7 percent for the first quarter of 2006 and 21.8 percent for the second quarter of 2005.

Gross margin increased to 30.0 percent for the second quarter of 2006 from 27.8 percent in the first quarter of 2006 and 19.3 percent for the second 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 $4.0 million in the second quarter of 2006, an increase of $80,000 over the first quarter of 2006 and $628,000 over the year-ago period. As a percent of sales, G&A expense declined to 5.2 percent in the second quarter of 2006, compared to 5.3 percent in the first quarter of 2006 and 5.8 percent in the second quarter of 2005. The year-over-year increase in G&A expense was due primarily to higher incentive compensation expense and stock-based compensation expense.

As a result of strong revenue growth and higher profitability, TTM posted operating income of $15.6 million for the second quarter of 2006, compared to $13.0 million for the first quarter of 2006 and $4.8 million for the second quarter of 2005.

Net income for the second quarter of 2006 was $10.6 million, or $0.25 per diluted share, compared with $8.8 million, or $0.21 per diluted share, for the first quarter of 2006, and $3.3 million, or $0.08 per diluted share, for the second quarter of 2005.

EBITDA (earnings before interest, taxes, depreciation and amortization) increased to $19.4 million for the second quarter of 2006 from $16.7 million for the first quarter of 2006 and $7.9 million for the second quarter of 2005.

In the second quarter of 2006, TTM generated cash flow from operations of $10.8 million, enabling it to fund net capital expenditures of $2.3 million, while expanding its cash and short-term investments to a total of $101.2 million, an increase of $10.7 million during the quarter.

"We again posted excellent results in the second quarter of 2006 as we capitalized on solid market conditions and continued to execute our time and technology strategy. We are proud of the fact that we consistently increase market share and generate superior profitability in the printed circuit board marketplace," said Kent Alder, President and CEO of TTM Technologies.

Outlook
For the third quarter of 2006, TTM is estimating revenues in a range of $73 million to $78 million and earnings in a range of $0.20 to $0.25 per diluted share.

"Business indicators for the printed circuit board industry, while somewhat mixed, suggest relative stability in the third quarter of 2006," concluded Alder. "And TTM will continue to expand on its time and technology leadership."

Conference Call/Webcast
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 second-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 August 3, 2006, on the company's website, www.ttmtech.com.

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TTM Technologies, Inc. Reports Second 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.

 

 

Company

TTM Technologies
(ticker: TTMI, exchange: NASDAQ)

Release Info

News Release:
07/26/2006

Contact

Steve Richards
Chief Financial Officer 714/241-0303