TTM Technologies, Inc. Reports First Quarter 2003 Results
REDMOND, WA - May 1, 2003 - TTM Technologies, Inc. (Nasdaq: TTMI), a leading
manufacturer of time-critical, technologically advanced printed circuit boards,
today reported results for the first quarter ended March 31, 2003.
First quarter 2003 revenue increased 67 percent to $39.6 million, compared to $23.7
million for the first quarter of 2002. The increase was due to the acquisition of
Advanced Circuits, Inc. (ACI) in the fourth quarter of 2002.
For the first quarter of 2003, quick-turn business decreased to 28 percent of total
revenues, compared to 44 percent for the first quarter of 2002, because of the addition
of ACI, with its focus on high technology, standard lead time PCBs.
Gross profit increased 74 percent to $4.5 million, as gross margins increased to
11.4 percent in the first quarter of 2003, compared to 10.9 percent for the same
period in 2002.
General and administrative expenses increased from $825,000 to $2.8 million. This
increase was due to the inclusion of ACI in TTM's results, higher bad debt expense
and directors and officers insurance expense, and the cost of integrating ACI into
its operations. TTM also incurred a restructuring charge associated with the previously
announced headcount reductions at its Redmond, Washington facility.
TTM had an operating loss of $1.3 million for the first quarter of 2003, compared
to an operating loss of $185,000 for the first quarter of 2002.
For the first quarter of 2003, TTM reported a net loss of $150,000, or breakeven
on a per share basis, including an extraordinary gain of $824,000, or $0.02 per
share, associated with the acquisition of ACI. The net loss before extraordinary
item for the first quarter of 2003 was $974,000, or ($0.02) per diluted share. This
compared with a net loss of $278,000, or ($0.01) per diluted share, for the first
quarter of 2002.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the
first quarter of 2003 were $897,000, down from $2.4 million for the same period
"We are encouraged by the results of our recent ACI acquisition," said Kent Alder,
President and CEO of TTM Technologies. "The integration has progressed well. ACI
generated positive cash flow and its performance exceeded our expectations for the
quarter. In addition, ACI is creating cross-selling opportunities with our existing
operations that should enable us to gain market share. However, we continue to battle
the weak business conditions in the electronics industry, and we experienced the
typical first-quarter, seasonal weakness in our quick-turn segment."
Cost Cutting Update
The production realignment and the subsequent closure of the Burlington, Washington
facility in 2002 has generated substantial cost savings. In addition, TTM implemented
cost-cutting measures with a reduction in force at its Redmond facility in the first
quarter, which should yield additional cost savings in the second quarter.
"Our balance sheet continues to strengthen," said Alder. At the end of the first
quarter, TTM had cash of $26.1 million and debt of $10 million, compared with cash
of $18.9 million and debt of $10 million at year-end 2002. TTM's cash increased
due to a tax refund of $5.7 million and positive cash flow from operations. In addition,
the company continued to maintain a revolving credit facility of $25 million, which
was undrawn at the end of the quarter.
With the challenging global events from Iraq to SARS, TTM does not see a recovery
in the electronics market in the near term. However, the company anticipates growth
in the form of market share gains.
For the second quarter of 2003, TTM anticipates revenues ranging from $39 to $41
million and breakeven earnings per share.
"Among our major U.S. competitors, we believe we are the low-cost producer with
the benefit of a very strong balance sheet," concluded Alder. "While we have aggressively
cut costs to maximize performance during the downturn, we continue to expand our
product offerings, grow our customer base, and invest in our time and technology
TTM Technologies, Inc. is a leading supplier of time-critical, 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 8, 2003, 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, including the recent significant
slowdown in the technology sector and related excess capacity, the unpredictability
of future revenues and expenses, potential fluctuations in revenues and operating
results, the company's ability to successfully integrate the ACI acquisition, and
other "Risk Factors" set forth in the company's Form 10-K for 2002.
Tables Follow - (Click on below link)
TTM Technologies, Inc. Earnings
Release Schedule For First Quarter 2003
"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.