TTM Technologies, Inc. Reports first Quarter 2005 Results
SANTA ANA, CA - May 2, 2005 - TTM Technologies, Inc. (Nasdaq: TTMI), a leading
manufacturer of time-critical and technologically advanced printed circuit boards,
today reported results for the first quarter of 2005.
First quarter 2005 net sales increased 2 percent to $58.9 million, compared to $57.7
million for the first quarter of 2004. Sequentially, from the fourth quarter of
2004, net sales were roughly unchanged.
For the first quarter of 2005, quick-turn business represented 21 percent of net
sales, compared to 21 percent for the first quarter of 2004 and 21 percent for the
fourth quarter of 2004. While quick-turn volume increased, pricing declined.
Gross margin decreased to 23.0 percent for the first quarter of 2005, compared to
30.0 percent for the first quarter of 2004 and 24.6 percent for the fourth quarter
of 2004. Start-up costs related to the Chippewa Falls expansion in the first quarter
of 2005, and pricing pressure affected gross margins.
General and administrative expenses decreased from the year-ago period, but increased
sequentially, primarily due to audit fees related to the implementation of Sarbanes
Oxley Act Section 404.
TTM posted an operating profit of $6.8 million for the first quarter of 2005, down
from $10.4 million for the first quarter of 2004 and $8.2 million for the fourth
quarter of 2004. The decline in gross profit, as described above, was the primary
Net income for the first quarter of 2005 was $4.5 million, or $0.11 per diluted
share, compared with $6.8 million, or $0.16 per diluted share, for the fourth quarter
of 2004, and $6.5 million, or $0.15 per diluted share, for the first quarter of
2004. The fourth quarter of 2004 included a $1.2 million, or $0.02 per share, benefit
from the reduction of the deferred income tax asset valuation allowance.
EBITDA (earnings before interest, taxes, depreciation and amortization) for the
first quarter of 2005 was $9.7 million, compared with $12.8 million for the first
quarter of 2004 and $11.0 million for the fourth quarter of 2004.
In the first quarter of 2005, TTM generated cash flow from operations of $5.5 million,
enabling it to fund net capital expenditures of $2.7 million, while expanding its
cash and short-term investments to a total of $61.9 million.
"Market demand was relatively stable in the first quarter of 2005, albeit with slightly
greater than expected pricing pressure," said Kent Alder, President and CEO of TTM
Technologies. "Internally, we had two factors that temporarily increased costs,
which were the start-up of our expansion at the Chippewa Falls facility and Sarbanes
Oxley compliance. The expansion of Chippewa Falls is now running smoothly and has
added capacity needed to satisfy customer demand. In addition, Sarbanes Oxley compliance
costs should decline in the second quarter."
For the second quarter of 2005, TTM is estimating revenues of $58 million to $61
million and earnings of $0.10 to $0.12 per diluted share.
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 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 9, 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
First 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.