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TTM Technologies, Inc. Reports Increased Revenues And Earnings In The Second Quarter Of 2004

for immediate release

SANTA ANA, CA - July 29, 2004 - TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical and technologically advanced printed circuit boards, today reported results for the second quarter ended June 28, 2004.

Second-Quarter Results
"We achieved yet another period of expanded revenues and earnings in the second quarter of 2004," said Kent Alder, President and CEO of TTM Technologies. "Market conditions remained favorable, and we continued to capture an increased share of the market. Additionally, the second quarter's cash flow from operations of $14.1 million represented our sixteenth consecutive quarter of positive cash flow from operations-every quarter since we have been a public company."

Second quarter 2004 revenue increased 50 percent to $61.6 million, compared to $41.0 million for the second quarter of 2003. Sequentially, from the first quarter of 2004 to the second quarter, revenues increased $3.9 million, or 7 percent.

For the second quarter of 2004, quick-turn business represented 22 percent of total revenues, compared to 29 percent for the second quarter of 2003 and 24 percent for the first quarter of 2004. The percentage declined due to higher growth in our standard volume products and a lower ramp-to-volume portion of our quick-turn business, at the end of the second quarter.

Gross margins increased to 31.0 percent for the second quarter of 2004, compared to 15.7 percent for the second quarter of 2003 and 30.0 percent for the first quarter of 2004. This margin improvement reflects TTM's significant operating leverage as well as a favorable product mix, as reflected in our increased layer count,and strong operating efficiency.

TTM posted an operating profit of $11.0 million for the second quarter of 2004, compared to an operating profit of $735,000 for the second quarter of 2003 and an operating profit of $10.4 million for the first quarter of 2004. The second quarter of 2004 included a pretax restructuring charge of $855,000 to write down the value of the Burlington property, which we closed two years ago and are holding for sale.

Net income for the second quarter of 2004 was $6.9 million, or $0.17 per diluted share, compared with net income of $6.5 million, or $0.15 per diluted share, for the first quarter of 2004, and net income of $432,000, or $0.01 per diluted share, for the second quarter of 2003. The non-cash restructuring charge reduced second quarter 2004 after-tax earnings by $539,000, or $0.01 per share.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2004 was $13.5 million, up from $3.1 million for the second quarter of 2003 and $12.8 million for the first quarter of 2004.

Financial Strength
"Our balance sheet continued to strengthen in the second quarter," continued Alder. Compared to the first quarter of 2004, cash and short-term investments increased $9.9 million, to $47.1 million at the end of the second quarter. Debt declined to $6.7 million at the end of the second quarter from $7.8 million at the end of the first period. TTM's $25 million revolving credit facility remained undrawn at the end of the quarter.

Outlook
"With healthy bookings and broad-based customer input confirming that market conditions remain favorable, we expect solid revenue and earnings in the third quarter of 2004," concluded Alder. For the third quarter of 2004, TTM is estimating revenues of $62 million to $64 million and earnings of $0.18 to $0.20 per share.

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 5, 2004, on the company's Web site, www.ttmtech.com.

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 Registration Statement on Form S-3, and 10-K.

- Tables Follow - (Please, Click on link below)
TTM Technologies, Inc. Earnings Release Schedule For Second Quarter 2004

"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:
07/29/2004

Contact

Stacey Peterson
Chief Financial Officer 714/241-0303