TTM Technologies, Inc. Reports Second Quarter 2005 Results
SANTA ANA, CA - July 7, 2005 - 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 2005.
Second quarter 2005 net sales decreased 7 percent to $57.2 million, compared to
$61.6 million for the second quarter of 2004. Sequentially, from the first quarter
of 2005, net sales decreased $1.7 million, or 3 percent. The sequential decline
resulted from declining prices, partially offset by higher volumes.
Quick-turn business remained stable in the second quarter and represented 22 percent
of net sales, compared to 21 percent for the second quarter of 2004 and 21 percent
for the first quarter of 2005.
Gross margin decreased to 19.3 percent for the second quarter of 2005, compared
to 31.0 percent for the second quarter of 2004 and 23.0 percent for the first quarter
of 2005. Gross margins during the second quarter of 2005 were negatively affected
by lower prices, reduced operating efficiency due to back-end loaded shipments,
and higher wage and benefits costs.
General and administrative expenses of $3.0 million in the second quarter declined
from $3.8 million in the year-ago period and $3.4 million in the first quarter of
2005. Sequentially, lower Sarbanes Oxley compliance costs and incentive compensation
were partially offset by higher legal expenses.
TTM posted an operating profit of $4.8 million for the second quarter of 2005, down
from $11.0 million for the second quarter of 2004 and $6.8 million for the first
quarter of 2005. The decline in gross profit, as described above, was the primary
Net income for the second quarter of 2005 was $3.3 million, or $0.08 per diluted
share, compared with $4.5 million, or $0.11 per diluted share, for the first quarter
of 2005, and $6.9 million, or $0.17 per diluted share, for the second quarter of
EBITDA (earnings before interest, taxes, depreciation and amortization) for the
second quarter of 2005 was $7.9 million, compared with $13.5 million for the second
quarter of 2004 and $9.7 million for the first quarter of 2005.
In the second quarter of 2005, TTM generated cash flow from operations of $3.7 million,
enabling it to fund net capital expenditures of $2.2 million, while expanding its
cash and short-term investments to a total of $63.6 million.
"Volume remained healthy in the second quarter, increasing 2 percent from the first
quarter of 2005, as order and shipment activity built over the course of the quarter,"
said Kent Alder, President and CEO of TTM Technologies. "But the back-end loaded
shipment pattern reduced operating efficiency, while pricing was lower than anticipated."
For the third quarter of 2005, TTM is estimating revenues of $57 million to $60
million and earnings of $0.07 to $0.10 per diluted share. "To date, third quarter
order rates are at higher levels than we experienced at the beginning of the second
quarter, but we continue to see pricing pressure," concluded Alder.
TTM also announced today that Stacey Peterson, the company's Chief Financial Officer,
will be leaving to accept a position as chief financial officer of a Los Angeles-based
"Stacey has been a tremendous asset to TTM," stated Kent Alder. "Among her many
accomplishments, she has established effective financial controls and put in place
a talented financial team that will serve our company well. The company has retained
an executive search firm to find a successor. In the meantime, Stacey will help
with the transition until a new CFO is named."
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, 2005, on the company's Web site,
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
Second 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.