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TTM Technologies, Inc. Reports Third Quarter 2007 Results

for immediate release

SANTA ANA, CA - October 31, 2007 - TTM Technologies, Inc. (Nasdaq: TTMI), North America's largest printed circuit board (PCB) manufacturer, today reported results for the third quarter of 2007, ended October 1, 2007.

Third Quarter 2007 Highlights

  • TTM reported strong results for the third quarter, with sequential improvement in all financial metrics.
  • The Company continued to pay down debt associated with the Printed Circuit Group (PCG) acquisition, ahead of schedule. TTM paid down $11 million in debt during the third quarter.
  • The Company reported a Book to Bill ratio of 1.23, exceeding the North American Industry PCB Book to Bill ratio of 1.08 for the three months ending in September 2007.

Third Quarter 2007 Highlights
Third quarter net sales of $163.1 million improved over second quarter 2007 net sales of $162.0 million, primarily due to increasing demand for TTM's high-tech manufacturing services.

Third quarter gross margin of 19.2 percent increased 100 basis points from 18.2 percent gross margin reported in the second quarter of 2007.

Selling and marketing expense for the third quarter of 2007 was $7.1 million, representing 4.4 percent of sales. This compares to second quarter 2007 selling and marketing expense of $7.6 million, representing 4.7 percent of sales.

General and administrative expense, including amortization of intangibles, for the third quarter of 2007 was $9.0 million, representing 5.5 percent of sales. This compares to second quarter 2007 general and administrative expense, including amortization of intangibles, of $8.9 million, representing 5.5 percent of sales.

TTM posted operating income of $15.2 million for the third quarter of 2007, compared to $13.1 million for the second quarter of 2007.

Net income for the third quarter of 2007 was $8.2 million, or $0.19 per diluted share. This compares with net income of $6.2 million, or $0.15 per diluted share, in the second quarter of 2007.

EBITDA (earnings before interest, taxes, depreciation and amortization) for the third quarter of 2007 was $22.2 million, compared with second quarter 2007 EBITDA of $20.1 million. (A reconciliation of this non-GAAP measure is provided after the GAAP financial statements accompanying this press release.)

"Robust demand for high-tech manufacturing services, combined with continued strength from our aerospace/defense customers, contributed to strong third quarter financial results," said Kent Alder, President and CEO of TTM. "However, the strong demand was tempered by softness in the computing end market." Alder concluded, "The Company had a strong level of bookings as evidenced by our book-to-bill ratio, which significantly exceeded the industry ratio and has rebounded from the beginning of the year."

Third Quarter Segment Information - PCB Manufacturing and Backplane Assembly
TTM Technologies' two reportable operating segments are PCB Manufacturing and Backplane Assembly.

For the PCB Manufacturing segment, net sales (before inter-segment sales) were $140.5 million in the third quarter of 2007, compared with $138.7 million in the second quarter of 2007. Operating segment income (before amortization of intangibles) was $13.9 million in the third quarter of 2007, compared with $12.0 million in the second quarter of 2007.

For the Backplane Assembly segment, net sales (before inter-segment sales) were $30.7 million in the third quarter of 2007, compared with $32.2 million in the second quarter of 2007. Operating segment income (before amortization of intangibles) was $2.3 million in the third quarter of 2007, compared with $2.1 million in the second quarter of 2007.

Balance Sheet
Cash and short-term investments at the end of the third quarter of 2007 totaled $27.3 million, compared with $26.1 million at the end of the second quarter of 2007.

In the third quarter of 2007, TTM continued to pay down debt associated with the PCG acquisition significantly ahead of schedule. During the quarter, the Company reduced debt by $11 million, reducing the debt balance to $109 million at the end of the quarter. In October, the company repaid an additional $10 million. It is noteworthy that the Company has cut its debt in half in roughly one year's time. As a result, the corresponding interest expense is expected to be lower in future quarters.

Fourth Quarter Forecast
For the fourth quarter of 2007, TTM estimates revenues in a range of $164 million to $172 million and earnings in a range of $0.18 to $0.23 per diluted share. "The strength that we are seeing for the fourth quarter is broad-based across all of our end markets," said Alder. "We are pleased with our execution toward improving operational efficiency, and we believe that our increased size optimally positions us to continue to deliver best-in-class solutions to our customers and solid bottom-line financial performance."

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 31, 2007, 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 303-262-2130 or 800-218-0204.

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 November 2, 2007. You may access the telephone replay by dialing 303-590-3000 or 800-405-2236 and entering confirmation code 11100051#.

Safe Harbor Statement
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.

About TTM
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 www.ttmtech.com .

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TTM Technologies, Inc. Reports Third Quarter 2007 Results

 

 

Company

TTM Technologies
(ticker: TTMI, exchange: NASDAQ)

Release Info

News Release:
10/31/2007

Contact

Steve Richards
Chief Financial Officer 714/241-0303