TTM Technologies, Inc. Reports Second Quarter 2006 Results
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 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
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.
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."
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,
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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.