TTM Technologies, Inc. Reports 2009 Second Quarter Results
SANTA ANA, CA - July 29, 2009 - TTM Technologies, Inc. (Nasdaq: TTMI), North
America's largest printed circuit board (PCB) manufacturer, today reported results
for the second quarter of 2009, ended June 29, 2009.
Second Quarter 2009 Financial and Operational Highlights
- Second quarter net income on a GAAP basis increased to $5.9 million, or $0.14 per
diluted share, from $1.4 million, or $0.03 per diluted share, in the first quarter.
- Gross margin increased to 18.7 percent in the second quarter from 16.3 percent in
the first quarter.
- Cash and short-term investments increased by $25.2 million during the second quarter
to $189.4 million.
Second Quarter 2009 Financial Results - GAAP
Second quarter net sales of $144.5 million decreased $4.5 million, or 3.0 percent,
from first quarter net sales of $149.0 million.
Operating income for the second quarter was $12.2 million compared to operating
income of $5.0 million for the first quarter. Excluding asset impairment and restructuring
charges, operating income for the first quarter was $7.8 million.
Net income for the second quarter was $5.9 million, or $0.14 per diluted share,
compared to first quarter net income of $1.4 million, or $0.03 per diluted share.
"In this challenging economic environment, TTM delivered improved earnings in a
quarter when revenue declined slightly and we generated $25.2 million in cash,"
said Kent Alder, President and CEO of TTM. "The rate of decline in revenues decreased
in the second quarter, which is a positive and encouraging sign. But, more importantly,
the structural and operational improvements that we have made as well as our ongoing
focus on cost control improved our margins over the prior quarter and strengthened
the company for the future," Alder said.
Second Quarter 2009 Financial Results - Non-GAAP
Non-GAAP results exclude stock-based compensation expense, amortization of intangibles,
restructuring and asset impairment charges, non-cash interest expense and the income
tax effects related to these expenses.
Second quarter non-GAAP net income was $8.3 million, or $0.19 per diluted share.
This compares to first quarter non-GAAP net income of $5.5 million, or $0.13 per
Excluding asset impairment charges, adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization) for the second quarter was $18.3 million, or 12.6
percent of net sales, compared with first quarter adjusted EBITDA of $11.1 million,
or 7.5 percent of net sales.
A reconciliation of the Company's non-GAAP financial measures is provided after
the GAAP financial statements accompanying this press release
Second Quarter Segment Information
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane
For the PCB Manufacturing segment, second quarter net sales (before inter-company
sales) were $122.6 million, compared with $132.3 million in the first quarter. Second
quarter operating segment income (before amortization of intangibles) was $10.7
million, compared with operating segment income (before amortization of intangibles)
of $4.4 million in the first quarter.
For the Backplane Assembly segment, second quarter net sales (before inter-company
sales) were $29.1 million, compared with $24.9 million in the first quarter. Second
quarter operating segment income (before amortization of intangibles) was $2.3 million,
compared with first quarter operating segment income (before amortization of intangibles)
of $1.5 million.
Cash and cash equivalents and short-term investments at the end of the second quarter
totaled $189.4 million, an increase of $25.2 million from $164.2 million at the
end of the first quarter.
Third Quarter Fiscal Year 2009 Forecast
For the third quarter of 2009, TTM estimates revenue in a range of $134 million
to $142 million and GAAP earnings in a range from $0.09 to $0.15 per diluted share.
TTM estimates non-GAAP earnings in a range from $0.14 to $0.20 per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call to discuss the second quarter results and
the third quarter 2009 outlook on July 29, 2009, at 4:30 p.m. Eastern Daylight Time
(1:30 p.m. Pacific Daylight Time).
To listen to the live webcast, log on to the TTM Technologies website at
http://www.ttmtech.com. To access the live conference call, dial 1-877-941-8412
To Access a Replay of the Webcast
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 July 31, 2009. You may access the telephone replay
by dialing 1-800-406-7325 or 1-303-590-3030 and entering confirmation code 4117262#.
About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP adjusted net income
and non-GAAP adjusted net income per share, which are non-GAAP financial measures.
Management believes that both measures -- which exclude amortization of intangibles,
stock-based compensation expense, non-cash interest expense on our convertible debt,
asset impairment charges and restructuring charges as well as the associated tax
impact of these charges -- provide additional useful information to investors regarding
the Company's ongoing financial condition and results of operations. In addition,
the Company's internal reporting, including information provided to the Company's
Audit Committee and Board of Directors, contains non-GAAP measures.
A material limitation associated with the use of the above non-GAAP financial measures
is that they have no standardized measurement prescribed by GAAP and may not be
comparable with similar non-GAAP financial measures used by other companies. The
Company compensates for these limitations by providing full disclosure of each non-GAAP
financial measure and reconciliation to the most directly comparable GAAP financial
measure. However, the non-GAAP financial measures should not be considered in isolation
from, or as a substitute for, financial information prepared in accordance with
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 impact of the current economic crisis, the company's dependence upon a small
number of customers, 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.
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 http://www.ttmtech.com.
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TTM Technologies, Inc. Reports Second Quarter