Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

August 6, 2024

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

Form 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 1, 2024

Or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to____________

Commission File Number: 000-31285

 

TTM TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

91-1033443

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

200 East Sandpointe, Suite 400, Santa Ana, California 92707

(Address of principal executive offices)

(714) 327-3000

(Registrant’s telephone number, including area code)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value

TTMI

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of August 2, 2024, there were outstanding 101,951,376 shares of the registrant’s Common Stock, $0.001 par value.

 


 

TTM TECHNOLOGIES, INC.

Form 10-Q

For the Quarter Ended July 1, 2024

TABLE OF CONTENTS

 

Page

PART I: FINANCIAL INFORMATION

 

3

Item 1. Financial Statements (unaudited)

 

3

Consolidated Condensed Balance Sheets as of July 1, 2024 and January 1, 2024

 

3

Consolidated Condensed Statements of Operations for the quarter and two quarters ended July 1, 2024 and July 3, 2023

 

4

Consolidated Condensed Statements of Comprehensive Income (Loss) for the quarter and two quarters ended July 1, 2024 and July 3, 2023

 

5

Consolidated Condensed Statements of Stockholders' Equity for the two quarters ended July 1, 2024 and July 3, 2023

 

6

Consolidated Condensed Statements of Cash Flows for the two quarters ended July 1, 2024 and July 3, 2023

 

7

Notes to Consolidated Condensed Financial Statements

 

8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

21

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

27

Item 4. Controls and Procedures

 

28

PART II: OTHER INFORMATION

 

29

Item 1. Legal Proceedings

 

29

Item 1A. Risk Factors

 

29

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

29

Item 3. Defaults Upon Senior Securities

 

29

Item 4. Mine Safety Disclosures

 

29

Item 5. Other Information

 

29

Item 6. Exhibits

 

30

SIGNATURES

 

31

2


 

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)

TTM TECHNOLOGIES, INC.

Consolidated Condensed Balance Sheets
As of July 1, 2024 and January 1, 2024

 

 

As of

 

 

 

July 1, 2024

 

 

January 1, 2024

 

 

 

(Unaudited)

 

 

 

(In thousands, except par value)

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

446,247

 

 

$

450,208

 

Accounts receivable, net

 

 

400,714

 

 

 

413,557

 

Contract assets

 

 

340,120

 

 

 

292,050

 

Inventories

 

 

216,906

 

 

 

213,075

 

Receivable from sale of Shanghai E-MS (SH E-MS) property

 

 

 

 

 

6,737

 

Prepaid expenses and other current assets

 

 

48,644

 

 

 

54,060

 

Total current assets

 

 

1,452,631

 

 

 

1,429,687

 

Property, plant, and equipment, net

 

 

838,243

 

 

 

807,667

 

Operating lease right-of-use assets

 

 

81,886

 

 

 

86,286

 

Goodwill

 

 

702,735

 

 

 

702,735

 

Definite-lived intangibles, net

 

 

210,355

 

 

 

236,711

 

Deposits and other non-current assets

 

 

57,514

 

 

 

60,577

 

Total assets

 

$

3,343,364

 

 

$

3,323,663

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Short-term debt, including current portion of long-term debt

 

$

2,625

 

 

$

3,500

 

Accounts payable

 

 

371,189

 

 

 

334,609

 

Contract liabilities

 

 

128,782

 

 

 

126,508

 

Accrued salaries, wages, and benefits

 

 

89,546

 

 

 

98,561

 

Other current liabilities

 

 

119,958

 

 

 

140,806

 

Total current liabilities

 

 

712,100

 

 

 

703,984

 

Long-term debt, net of discount and issuance costs

 

 

913,428

 

 

 

914,336

 

Operating lease liabilities

 

 

76,172

 

 

 

80,786

 

Other long-term liabilities

 

 

112,765

 

 

 

113,518

 

Total long-term liabilities

 

 

1,102,365

 

 

 

1,108,640

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Common stock, $0.001 par value; 300,000 shares authorized; 113,109 and 111,282
   shares issued as of July 1, 2024 and January 1, 2024, respectively;
   
101,945 and 102,108 shares outstanding as of July 1, 2024 and
   January 1, 2024, respectively

 

 

113

 

 

 

111

 

Treasury stock – common stock at cost; 11,164 and 9,174 shares as of July 1, 2024
   and January 1, 2024, respectively

 

 

(157,570

)

 

 

(123,091

)

Additional paid-in capital

 

 

894,328

 

 

 

880,963

 

Retained earnings

 

 

818,941

 

 

 

782,123

 

Accumulated other comprehensive loss

 

 

(26,913

)

 

 

(29,067

)

Total stockholders’ equity

 

 

1,528,899

 

 

 

1,511,039

 

Total liabilities and stockholders' equity

 

$

3,343,364

 

 

$

3,323,663

 

 

See accompanying notes to consolidated condensed financial statements.

3


 

TTM TECHNOLOGIES, INC.

Consolidated Condensed Statements of Operations
For the Quarter and Two Quarters Ended July 1, 2024 and July 3, 2023

 

 

 

Quarter Ended

 

 

Two Quarters Ended

 

 

 

July 1, 2024

 

 

July 3, 2023

 

 

July 1, 2024

 

 

July 3, 2023

 

 

 

(Unaudited)

 

 

 

(In thousands, except per share data)

 

Net sales

 

$

605,137

 

 

$

546,509

 

 

$

1,175,250

 

 

$

1,090,946

 

Cost of goods sold

 

 

487,910

 

 

 

448,002

 

 

 

954,304

 

 

 

906,316

 

Gross profit

 

 

117,227

 

 

 

98,507

 

 

 

220,946

 

 

 

184,630

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

19,798

 

 

 

18,180

 

 

 

40,092

 

 

 

39,482

 

General and administrative

 

 

38,604

 

 

 

37,840

 

 

 

82,274

 

 

 

72,913

 

Research and development

 

 

8,547

 

 

 

6,424

 

 

 

15,868

 

 

 

13,509

 

Amortization of definite-lived intangibles

 

 

10,256

 

 

 

3,852

 

 

 

21,685

 

 

 

25,816

 

Restructuring charges

 

 

1,036

 

 

 

10,803

 

 

 

4,974

 

 

 

14,970

 

Total operating expenses

 

 

78,241

 

 

 

77,099

 

 

 

164,893

 

 

 

166,690

 

Operating income

 

 

38,986

 

 

 

21,408

 

 

 

56,053

 

 

 

17,940

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(12,219

)

 

 

(11,843

)

 

 

(24,543

)

 

 

(24,650

)

Loss on extinguishment of debt

 

 

 

 

 

(1,154

)

 

 

 

 

 

(1,154

)

(Loss) gain on sale of subsidiary

 

 

 

 

 

(69

)

 

 

 

 

 

1,270

 

Other, net

 

 

3,765

 

 

 

5,068

 

 

 

13,091

 

 

 

6,266

 

Total other expense, net

 

 

(8,454

)

 

 

(7,998

)

 

 

(11,452

)

 

 

(18,268

)

Income (loss) before income taxes

 

 

30,532

 

 

 

13,410

 

 

 

44,601

 

 

 

(328

)

Income tax (provision) benefit

 

 

(4,180

)

 

 

(6,586

)

 

 

(7,783

)

 

 

1,338

 

Net income

 

$

26,352

 

 

$

6,824

 

 

$

36,818

 

 

$

1,010

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.26

 

 

$

0.07

 

 

$

0.36

 

 

$

0.01

 

Diluted earnings per share

 

 

0.25

 

 

 

0.07

 

 

 

0.35

 

 

 

0.01

 

 

See accompanying notes to consolidated condensed financial statements.

4


 

TTM TECHNOLOGIES, INC.

Consolidated Condensed Statements of Comprehensive Income (Loss)
For the Quarter and Two Quarters Ended July 1, 2024 and July 3, 2023

 

 

 

Quarter Ended

 

 

Two Quarters Ended

 

 

 

July 1, 2024

 

 

July 3, 2023

 

 

July 1, 2024

 

 

July 3, 2023

 

 

 

(Unaudited)

 

 

 

(In thousands)

 

Net income

 

$

26,352

 

 

$

6,824

 

 

$

36,818

 

 

$

1,010

 

Other comprehensive (loss) income, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

Pension obligation adjustments, net

 

 

 

 

 

(1

)

 

 

 

 

 

 

Foreign currency translation adjustments, net

 

 

(56

)

 

 

(463

)

 

 

(858

)

 

 

(433

)

Derecognition of foreign currency translation adjustments
     due to sale of subsidiary

 

 

 

 

 

 

 

 

 

 

 

(6,627

)

Net unrealized gain on cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on effective cash flow hedges during
     the period, net

 

 

921

 

 

 

5,820

 

 

 

4,740

 

 

 

5,140

 

Amounts realized in the statement of operations, net

 

 

(861

)

 

 

(726

)

 

 

(1,728

)

 

 

(721

)

Net

 

 

60

 

 

 

5,094

 

 

 

3,012

 

 

 

4,419

 

Other comprehensive income (loss), net of tax

 

 

4

 

 

 

4,630

 

 

 

2,154

 

 

 

(2,641

)

Comprehensive income (loss), net of tax

 

$

26,356

 

 

$

11,454

 

 

$

38,972

 

 

$

(1,631

)

 

See accompanying notes to consolidated condensed financial statements.

5


 

TTM TECHNOLOGIES, INC.

Consolidated Condensed Statements of Stockholders’ Equity
For the Two Quarters Ended July 1, 2024 and July 3, 2023

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Additional
Paid-In

 

 

Retained

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Equity

 

 

 

(Unaudited)

 

 

 

(In thousands)

 

Balance, January 1, 2024

 

 

111,282

 

 

$

111

 

 

 

(9,174

)

 

$

(123,091

)

 

$

880,963

 

 

$

782,123

 

 

$

(29,067

)

 

$

1,511,039

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,466

 

 

 

 

 

 

10,466

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,150

 

 

 

2,150

 

Issuance of common stock for
   performance-based
   restricted stock units

 

 

227

 

 

 

1

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Issuance of common stock for
   restricted stock units

 

 

41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchases of common stock

 

 

 

 

 

 

 

 

(600

)

 

 

(9,334

)

 

 

 

 

 

 

 

 

 

 

 

(9,334

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,787

 

 

 

 

 

 

 

 

 

6,787

 

Balance, April 1, 2024

 

 

111,550

 

 

$

112

 

 

 

(9,774

)

 

$

(132,425

)

 

$

887,749

 

 

$

792,589

 

 

$

(26,917

)

 

$

1,521,108

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26,352

 

 

 

 

 

 

26,352

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

Issuance of common stock for
   restricted stock units

 

 

1,559

 

 

 

1

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Repurchases of common stock

 

 

 

 

 

 

 

 

(1,390

)

 

 

(25,145

)

 

 

 

 

 

 

 

 

 

 

 

(25,145

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,580

 

 

 

 

 

 

 

 

 

6,580

 

Balance, July 1, 2024

 

 

113,109

 

 

$

113

 

 

 

(11,164

)

 

$

(157,570

)

 

$

894,328

 

 

$

818,941

 

 

$

(26,913

)

 

$

1,528,899

 

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Additional
Paid-In

 

 

Retained

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Equity

 

 

 

(Unaudited)

 

 

 

(In thousands)

 

Balance, January 2, 2023

 

 

109,598

 

 

$

110

 

 

 

(7,370

)

 

$

(98,659

)

 

$

858,077

 

 

$

800,841

 

 

$

(24,790

)

 

$

1,535,579

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,814

)

 

 

 

 

 

(5,814

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,271

)

 

 

(7,271

)

Issuance of common stock for
   performance-based
   restricted stock units

 

 

337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock for
   restricted stock units

 

 

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,240

 

 

 

 

 

 

 

 

 

5,240

 

Balance, April 3, 2023

 

 

109,956

 

 

$

110

 

 

 

(7,370

)

 

$

(98,659

)

 

$

863,317

 

 

$

795,027

 

 

$

(32,061

)

 

$

1,527,734

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,824

 

 

 

 

 

 

6,824

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,630

 

 

 

4,630

 

Issuance of common stock
   for restricted stock units

 

 

1,284

 

 

 

1

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,121

 

 

 

 

 

 

 

 

 

5,121

 

Balance, July 3, 2023

 

 

111,240

 

 

$

111

 

 

 

(7,370

)

 

$

(98,659

)

 

$

868,437

 

 

$

801,851

 

 

$

(27,431

)

 

$

1,544,309

 

 

See accompanying notes to consolidated condensed financial statements.

6


 

TTM TECHNOLOGIES, INC.

Consolidated Condensed Statements of Cash Flows
For the Two Quarters Ended July 1, 2024 and July 3, 2023

 

 

 

Two Quarters Ended

 

 

 

July 1, 2024

 

 

July 3, 2023

 

 

 

(Unaudited)

 

 

 

(In thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

36,818

 

 

$

1,010

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation of property, plant, and equipment

 

 

50,879

 

 

 

50,190

 

Amortization of definite-lived intangible assets

 

 

26,356

 

 

 

34,047

 

Amortization of debt discount and issuance costs

 

 

1,024

 

 

 

1,225

 

Loss on extinguishment of debt

 

 

 

 

 

1,154

 

Deferred income taxes

 

 

(209

)

 

 

(495

)

Stock-based compensation

 

 

13,367

 

 

 

10,361

 

Gain on sale of subsidiary

 

 

 

 

 

(1,270

)

Other

 

 

(9,193

)

 

 

(234

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

12,843

 

 

 

76,590

 

Contract assets

 

 

(48,070

)

 

 

22,110

 

Inventories

 

 

(3,831

)

 

 

(19,082

)

Prepaid expenses and other current assets

 

 

(11,031

)

 

 

(7,580

)

Accounts payable

 

 

24,198

 

 

 

(35,678

)

Contract liabilities

 

 

2,274

 

 

 

11,265

 

Accrued salaries, wages, and benefits

 

 

(9,015

)

 

 

(40,911

)

Other current liabilities

 

 

(660

)

 

 

(21,740

)

Net cash provided by operating activities

 

 

85,750

 

 

 

80,962

 

Cash flows from investing activities:

 

 

 

 

 

 

Proceeds from sale of SH E-MS property

 

 

6,737

 

 

 

61,769

 

Purchase of property, plant, and equipment and other assets

 

 

(88,811

)

 

 

(80,467

)

Proceeds from sale of property, plant, and equipment and other assets

 

 

29,560

 

 

 

343

 

Proceeds from sale of subsidiary, net of cash disposed

 

 

 

 

 

6,039

 

Net cash used in investing activities

 

 

(52,514

)

 

 

(12,316

)

Cash flows from financing activities:

 

 

 

 

 

 

Repurchases of common stock

 

 

(34,479

)

 

 

 

Repayment of long-term debt borrowings

 

 

(2,625

)

 

 

(290,697

)

Proceeds from long-term debt borrowing

 

 

 

 

 

234,818

 

Refund of customer deposits

 

 

 

 

 

(7,500

)

Payment of debt issuance costs

 

 

 

 

 

(5,487

)

Payment of original issue discount

 

 

 

 

 

(3,500

)

Net cash used in financing activities

 

 

(37,104

)

 

 

(72,366

)

Effect of foreign currency exchange rates on cash and cash equivalents

 

 

(93

)

 

 

(313

)

Net decrease in cash and cash equivalents

 

 

(3,961

)

 

 

(4,033

)

Cash and cash equivalents at beginning of period

 

 

450,208

 

 

 

402,749

 

Cash and cash equivalents at end of period

 

$

446,247

 

 

$

398,716

 

Supplemental cash flow information:

 

 

 

 

 

 

Cash paid, net for interest

 

$

27,048

 

 

$

26,050

 

Cash paid, net for income taxes

 

 

11,475

 

 

 

25,618

 

Supplemental disclosure of noncash investing and financing activities:

 

 

 

 

 

 

Property, plant, and equipment recorded in accounts payable and other current liabilities

 

$

75,271

 

 

$

19,993

 

Cashless extinguishment of debt for issuance of new long-term debt borrowing

 

 

 

 

 

115,182

 

 

See accompanying notes to consolidated condensed financial statements.

7


 

TTM TECHNOLOGIES, INC.

Notes to Consolidated Condensed Financial Statements

(Unaudited)

(Dollars and shares in thousands, except per share data)

(1) Nature of Operations and Basis of Presentation

TTM Technologies, Inc. (the Company or TTM) is a leading global manufacturer of technology solutions including mission systems, radio frequency (RF) components/RF microwave/microelectronic assemblies, and quick-turn and technologically advanced printed circuit boards (PCB). The Company provides time-to-market and volume production of advanced technology products and offers a one-stop design, engineering, and manufacturing solution to customers. This solution allows the Company to align technology developments with the diverse needs of the Company’s customers and to enable them to reduce the time required to develop new products and bring them to market.

The Company serves a diversified customer base in various markets throughout the world, including aerospace and defense, data center computing, automotive, medical, industrial and instrumentation related products, and networking. The Company’s customers include original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), distributors, and government agencies (both domestic and allied foreign governments).

The accompanying unaudited consolidated condensed financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s most recent Annual Report on Form 10-K. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated condensed financial statements and accompanying notes. Due, in part, to the conflict between Russia and Ukraine, and the conflict in Israel and the Gaza Strip, the global economy and financial markets have been volatile. As such, the Company has considered information available to it as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision to the carrying value of its assets or liabilities. The actual results the Company experienced may differ materially and adversely from its estimates. The Company uses a 52/53 week fiscal calendar with the fourth quarter ending on the Monday nearest December 31.

Recently Issued Accounting Standards Not Yet Adopted

In March 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements, to remove various references to concepts statements from the Accounting Standards Codification (ASC). These amendments clarify guidance, simplify wording or structure of guidance, and other minor improvements. The amendments are effective for fiscal years beginning after December 15, 2024, applied prospectively, with early adoption and retrospective application permitted. The impact of the adoption of the amendments in this update is not expected to be material to the Company's consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The update will be effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements not yet issued or made available for issuance. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements and related disclosures, but expects additional disclosures upon adoption.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements and related disclosures, but expects additional disclosures upon adoption.

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In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the Securities and Exchange Commission’s Disclosure Update and Simplification Initiative, which modifies the disclosure or presentation requirements of a variety of topics in the ASC in response to the SEC’s Release No. 33-10532, Disclosure Update and Simplification Initiative, and align the ASC requirements with the SEC’s regulations. For entities subject to the SEC's existing disclosure requirements, the effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective. Early adoption is prohibited. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements and related disclosures.

(2) Share Repurchase Program

On May 3, 2023, the Company's Board of Directors authorized and approved a share repurchase program (2023 Repurchase Program), under which the Company may repurchase up to $100,000 in value of the Company’s outstanding shares of common stock from time to time through May 3, 2025. The Company may repurchase shares through open market purchases, privately-negotiated transactions, or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended (Exchange Act), which sets certain restrictions on the method, timing, price, and volume of open market stock repurchases. In addition, the Company adopted one trading plan in accordance with Rule 10b5-1 of the Exchange Act to facilitate certain purchases that may be effected under the share repurchase program. The timing, manner, price, and amount of any repurchases will be determined at the Company’s discretion, and the share repurchase program may be suspended, terminated, or modified at any time for any reason. The repurchase program does not obligate the Company to acquire any specific number of shares.

During the quarter ended July 1, 2024, the Company repurchased 1,390 shares of common stock for a total cost of $25,145 (including commissions) and during the two quarters ended July 1, 2024, the Company repurchased 1,990 shares of common stock for a total cost of $34,479 (including commissions). As of July 1, 2024, the remaining amount in value available to be repurchased under the 2023 Repurchase Program was approximately $41,088.

(3) Significant Customers and Concentration of Credit Risk

Financial instruments that are potentially subject to concentrations of credit risk are primarily cash and cash equivalents and accounts receivable.

The Company had cash and cash equivalents held by its foreign subsidiaries of $174,623 and $195,928 as of July 1, 2024 and January 1, 2024, respectively. The Company maintains its cash and cash equivalents with major financial institutions and such balances exceed Federal Deposit Insurance Corporation insurance limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risk on cash and cash equivalents.

In the normal course of business, the Company extends credit to its customers. Some customers to whom the Company extends credit are located outside the United States. The Company performs on-going credit evaluations of customers, does not require collateral, and considers the credit risk profile of the entity from which the receivable is due in further evaluating collection risk. As of July 1, 2024 and January 1, 2024, there were no customers that accounted for 10% or more of the Company's accounts receivable.

The Company’s customers include both OEMs and EMS companies. The Company’s OEM customers often direct a significant portion of their purchases through EMS companies. While the Company’s customers include both OEM and EMS providers, the Company measures customer concentration based on OEM companies, as they are the ultimate end customers.

For the quarter and two quarters ended July 1, 2024, one customer accounted for approximately 11% of the Company's net sales. For the quarter and two quarters ended July 3, 2023, one customer accounted for approximately 13% of the Company's net sales.

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(4) Revenues

As of July 1, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations for long-term contracts was $413,941. The Company expects to recognize revenue on approximately 49% of the remaining performance obligations for the Company’s long-term contracts over the next 12 months with the remaining amount expected to be recognized thereafter.

For contracts in which anticipated total costs exceed the total expected revenue, an estimated loss is recognized in the period when identifiable. A provision for the entire amount of the estimated loss is recorded on a cumulative basis. The estimated remaining costs to complete for loss contracts as of July 1, 2024 and January 1, 2024 were $35,227 and $25,213, respectively.

Revenue recognized for the two quarters ended July 1, 2024 from amounts recorded as contract liabilities as of January 1, 2024 was $28,205. Revenue recognized for the two quarters ended July 3, 2023 from amounts recorded as contract liabilities as of January 2, 2023 was $27,069.

Revenue from products and services transferred to customers over time and at a point in time accounted for 96% and 4%, respectively, of the Company’s revenue for both the quarter and two quarters ended July 1, 2024 and July 3, 2023.

Disaggregated revenue by principal end markets with reportable segments was as follows:

 

 

 

Quarter Ended July 1, 2024

 

 

Quarter Ended July 3, 2023

 

 

 

PCB

 

 

RF and Specialty Components (RF&S Components)

 

 

Total

 

 

PCB

 

 

RF&S Components

 

 

Total

 

 

 

(In thousands)

 

End Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace and Defense

 

$

272,789

 

 

$

 

 

$

272,789

 

 

$

254,284

 

 

$

 

 

$

254,284

 

Automotive

 

 

82,698

 

 

 

 

 

 

82,698

 

 

 

92,374

 

 

 

 

 

 

92,374

 

Data Center Computing

 

 

124,052

 

 

 

63

 

 

 

124,115