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TTM Technologies Inc. Reports 2009 Third Quarter Results

for immediate release

Santa Ana, CA - November 4, 2009 - TTM Technologies, Inc. (Nasdaq: TTMI), North America's largest printed circuit board (PCB) manufacturer, today reported results for the third quarter of 2009, ended September 28, 2009.

Third Quarter 2009 Financial Results - GAAP
Third quarter net sales of $139.1 million decreased $5.4 million, or 3.7 percent, from second quarter net sales of $144.5 million. Net loss for the third quarter was $4.9 million, or $0.11 per basic share, compared to second quarter net income of $5.9 million, or $0.14 per diluted share. Excluding non-recurring charges, net income for the third quarter was $5.5 million, or $0.13 per diluted share.

During the third quarter, TTM recorded non-recurring charges totaling $17.1 million, or $0.24 per diluted share, primarily related to the closure of the Company's Hayward, California and Los Angeles, California facilities announced on September 1, 2009 as well as further impairment of its Dallas, Oregon building.

"We are encouraged by the improvement in demand we are experiencing in our PCB business," said Kent Alder, President and CEO of TTM. "For the first time in five quarters, PCB sales increased due to growth with our commercial customers."

Third quarter gross margin of 17.4 percent declined from second quarter gross margin of 18.7 percent. Excluding $2.6 million of inventory write-down costs related to the facility closures, gross margin was 19.3 percent.

Operating loss for the third quarter was $5.4 million compared to operating income of $12.2 million for the second quarter. Excluding non-recurring charges, operating income for the third quarter was $11.7 million.

"TTM continues to perform solidly in all key financial metrics," Alder said. "With the restructuring of our North American footprint, we have positioned the company to better serve customers, improve operating efficiencies and take advantage of improving market conditions."

Third Quarter 2009 Financial Results - Non-GAAP
Non-GAAP results for the third quarter exclude amortization of intangibles, stock-based compensation expense, non-cash interest expense, asset impairment and restructuring charges, inventory write-down related to facility closures and other costs and the income tax effects related to these expenses.

Third quarter non-GAAP net income was $7.8 million, or $0.18 per diluted share. This compares to second quarter non-GAAP net income of $8.7 million, or $0.20 per diluted share.

Excluding asset impairment charges, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the third quarter was $10.7 million, or 7.7 percent of net sales, compared with second quarter EBITDA of $18.3 million, or 12.6 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.

Third Quarter Segment Information
TTM Technologies reports two operating segments: PCB Manufacturing and Backplane Assembly.

For the PCB Manufacturing segment, third quarter net sales (before inter-company sales) were $123.2 million, compared with $122.6 million in the second quarter. Third quarter operating segment loss (before amortization of intangibles) was $1.9 million due to non-recurring charges of $14.0 million. Excluding these charges, third quarter operating income (before amortization of intangibles) for the PCB Manufacturing segment was $12.1 million compared with operating segment income of $10.7 million in the second quarter.

For the Backplane Assembly segment, third quarter net sales (before inter-company sales) were $24.0 million, compared with $29.1 million in the second quarter. Third quarter operating segment loss (before amortization of intangibles) was $2.6 million due to non-recurring charges of $3.1 million. Excluding these charges, third quarter operating income (before amortization of intangibles) for the Backplane Assembly segment was $0.5 million compared with second quarter operating segment income (before amortization of intangibles) of $2.3 million.

Balance Sheet
Cash and cash equivalents and short-term investments at the end of the third quarter totaled $200.7 million, an increase of $11.3 million from $189.4 million at the end of the second quarter.

Fourth Quarter Fiscal Year 2009 Forecast
For the fourth quarter of 2009, TTM estimates revenue in a range of $140 million to $148 million and GAAP earnings in a range from $0.11 to $0.16 per diluted share.

TTM estimates non-GAAP earnings in a range from $0.18 to $0.23 per diluted share.

To Access the Live Webcast/Conference Call
The company will host a conference call to discuss the third quarter results and the fourth quarter 2009 outlook on November 4, 2009, at 4:30 p.m. Eastern Standard Time (1:30 p.m. Pacific Standard Time).

To listen to the live webcast, log on to the TTM Technologies website at www.ttmtech.com. To access the live conference call, dial 408-629-9819 or 1-877-941-8632

To Access a Replay of the Webcast
A digital replay will be available on TTM Technologies' website at 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 Nov. 10, 2009. You may access the telephone replay by dialing 303-590-3030 or 800-406-7325 and entering confirmation code 4177386#.

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 and restructuring charges, inventory write-down related to facility closures and other costs 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 GAAP.

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.

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

TTM Technologies, Inc. Reports Third Quarter 2009

 

 

Company

TTM Technologies
(ticker: TTMI, exchange: NASDAQ)

Release Info

News Release:
11/04/2009

Contact

Steve Richards
Chief Financial Officer 714/241-0303