TTM Technologies, Inc. Reports Third Quarter 2008 Results
SANTA ANA, CA - October 29, 2008 - TTM Technologies, Inc. (Nasdaq: TTMI),
North America's largest printed circuit board (PCB) manufacturer, today reported
results for the third quarter of 2008, ended September 29, 2008.
Third Quarter 2008 Financial & Operational Highlights
- TTM demonstrated strong free cash flow, increasing cash and cash equivalents and
short-term investments by $16.3 million in the third quarter for a quarter ending
balance of $135.0 million.
- Strength at a number of Aerospace/Defense customers raised this end market to 39
percent of net sales from 36 percent of net sales in the second quarter.
Third Quarter 2008 Financial Results
Kent Alder, President and CEO of TTM, noted, "We are pleased with our results for
the third quarter. Despite challenging global macroeconomic conditions, we continued
our trend of delivering solid financial performance. During the quarter, we continued
to generate significant cash. The Aerospace/Defense end market was a significant
part of our success and is showing continued strength."
Third quarter net sales of $169.0 million decreased $4.0 million, or 2.3 percent,
from second quarter net sales of $173.0 million.
Third quarter gross margin of 19.0 percent declined from second quarter gross margin
of 21.1 percent.
TTM posted third quarter operating income of $15.5 million, which compares to second
quarter operating income of $19.1 million.
Third quarter net income of $9.5 million, or $0.22 per diluted share, was in line
with guidance and compares with second quarter net income of $9.4 million, or $0.22
per diluted share. In the third quarter, TTM recorded a $579,000 unrealized loss
on its $20.1 million holdings in the Reserve Primary Fund, a money market fund that
is currently liquidating its assets. The Company classified the amount in this money
market fund as short-term investments. This unrealized loss, net of tax, reduced
third quarter earnings per diluted share by $0.01.
EBITDA (earnings before interest, taxes, depreciation and amortization) for the
third quarter was $22.2 million, or 13.1 percent of net sales, compared with second
quarter EBITDA of $24.5 million, or 14.1 percent of net sales. (A reconciliation
of this non-GAAP measure is provided after the GAAP financial statements accompanying
this press release.)
Third Quarter Segment Information - PCB Manufacturing and Backplane Assembly
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane
For the PCB Manufacturing segment, third quarter net sales (before inter-company
sales) were $148.0 million, compared with $149.6 million in the second quarter.
Third quarter operating segment income (before amortization of intangibles) was
$14.3 million, compared with $17.8 million in the second quarter.
For the Backplane Assembly segment, third quarter net sales (before inter-company
sales) were $29.3 million, compared with $31.2 million in the second quarter. Third
quarter operating segment income (before amortization of intangibles) was $2.1 million,
compared with $2.2 million in the second quarter.
Cash and cash equivalents and short-term investments at the end of the third quarter
totaled $135.0 million, compared with $118.7 million at the end of the second quarter,
an increase of $16.3 million.
Fourth Quarter Fiscal Year 2008 Forecast
For the fourth quarter of 2008, TTM estimates revenues in a range of $156 million
to $164 million and earnings in a range of $0.14 to $0.19 per diluted share.
To Access the Live Web Cast/Conference Call
The company will host a conference call to discuss the third quarter results and
fourth quarter outlook on October 29, 2008, at 4:30 p.m. Eastern Daylight Time (1:30
p.m. Pacific Daylight Time).
To listen to the live web cast, log on to the TTM Technologies website at
http://www.ttmtech.com. To access the live conference call, dial 303-262-2142
To Access a Replay of the Web Cast
A digital replay will be available on TTM Technologies' website at
http://www.ttmtech.com and will remain accessible for one week following
the live event.
A telephone replay also will be available beginning two hours after the conclusion
of the conference call until October 31, 2008. You may access the telephone replay
by dialing 303-590-3000 or 800-405-2236 and entering confirmation code 11121228#.
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.
TTM Technologies, Inc. is North America's largest printed circuit board manufacturer,
focusing on quick-turn and technologically advanced PCBs and the backplane and sub-system
assembly business. 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. Additional information
can be found at http://www.ttmtech.com.
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TTM Technologies, Inc. Reports Third Quarter 2008