Exhibit 99.1

 

 

STRONG GAINS CONTINUE AT TTM TECHNOLOGIES, INC.; FIRST QUARTER 2004

NET INCOME OF $0.15 PER SHARE ON REVENUES OF $57.7 MILLION

 

SANTA ANA, CA – April 26, 2004 – TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical and technologically advanced printed circuit boards, today reported results for the first quarter ended March 29, 2004.

 

First-Quarter Results

 

First quarter 2004 revenue increased 46 percent to $57.7 million, compared to $39.6 million for the first quarter of 2003, due to continued strengthening of end-market demand and market share gains.  Sequentially, revenues increased $3.4 million, or 6 percent, compared to the fourth quarter of 2003.

 

For the first quarter of 2004, the quick-turn business remained strong, with year-over-year revenue growth of 25 percent.  As a percent of total revenues, quick turn represented 24 percent, compared to 28 percent for the first quarter of 2003 and 27 percent for the fourth quarter of 2003. The percentage declined, year-over-year, as the company’s Chippewa Falls facility—which specializes in technologically advanced, standard lead time boards—grew at a particularly rapid pace. The sequential decline reflects the typical seasonal slowdown in quick-turn business in the first quarter.

 

Gross margins increased to 30.0 percent for the first quarter of 2004, compared to 11.4 percent for the first quarter of 2003 and 26.1 percent for the fourth quarter of 2003. This margin improvement reflects TTM’s significant operating leverage, favorable mix and pricing trends, and strong operating efficiency achieved during the quarter.

 

TTM posted an operating profit of $10.4 million for the first quarter of 2004, compared to an operating loss of $1.3 million for the first quarter of 2003 and an operating profit of $7.1 million for the fourth quarter of 2003.

 

Net income for the first quarter of 2004 was $6.5 million, or $0.15 per diluted share, compared with net income of $4.7 million, or $0.11 per diluted share, for the fourth quarter of 2003, and net loss of $150,000, or breakeven on a per share basis, for the first quarter of 2003.  Net income for the fourth quarter of 2003 included a restructuring charge of $446,000 and a $411,000 extraordinary gain related to the acquisition of ACI.  Net income for the first quarter of 2003 included a restructuring charge of $203,000 and an extraordinary gain of $824,000 related to ACI.

 

Earnings before interest, taxes, depreciation, amortization and extraordinary gain (EBITDA before extraordinary gain) for the first quarter of 2004 was $12.7 million, up from $897,000 for the first quarter of 2003 and $9.9 million for the fourth quarter of 2003.

 

“Despite the typical seasonal slowdown in our quick-turn business in the first quarter of the year, we posted strong sequential revenue and earnings growth as we continued to

 

 

gain market share in an expanding market,” said Kent Alder, President and CEO of TTM Technologies.

 

Financial Strength

 

“Our cash position strengthened even further in the first quarter of 2004,” continued Alder. TTM ended the quarter with cash and short-term investments of $37.2 million, compared with $31.7 million at year-end 2003.  Debt remained flat at $7.8 million.  TTM’s $25 million revolving credit facility remained undrawn at the end of the quarter.

 

Outlook

 

“Due to continued strong operational execution and the expectation of further market share gains, we are forecasting sequential revenue and earnings improvement for the second quarter,” concluded Alder.

 

For the second quarter of 2004, TTM is estimating revenues of $59 to $62 million and earnings of $0.16 to $0.18 per share.

 

“We also anticipate favorable market conditions to continue in the second half of 2004.  Based on input from customers, we expect second-half volumes to exceed first-half levels.”

 

Conference Call/Webcast

 

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 4, 2004, on the company’s Web site, www.ttmtech.com.

 

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 Registration Statement on Form S-3 and 10-K.

 

- Tables Follow -

 

 

TTM TECHNOLOGIES, INC.

 

Selected Unaudited Financial Information

 

(In thousands, except per share data)

 

		First Quarter						Fourth Quarter
		2004			2003			2003
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales		$	57,696		$	39,634		$	54,309
Cost of goods sold		40,416			35,108			40,114
Gross profit		17,280			4,526			14,195
Operating expenses:
Sales and marketing		3,041			2,545			2,965
General and administrative		3,508			2,814			3,376
Amortization of intangibles		300			300			301
Restructuring charges		—			203			446
Total operating expenses		6,849			5,862			7,088
Operating income (loss)		10,431			(1,336		)	7,107
Interest expense		(120		)	(155		)	(132		)
Amortization of debt issuance costs		(27		)	(16		)	(26		)
Interest income and other, net		92			77			83
Income (loss) before income taxes and extraordinary item		10,376			(1,430		)	7,032
Income tax benefit (provision)		(3,850		)	456			(2,788		)
Net income (loss) before extraordinary item		6,526			(974		)	4,244
Extraordinary gain		—			824			411
Net income (loss)		$	6,526		$	(150	)	$	4,655
Earnings per common share (EPS) before extraordinary item:
Basic		$	0.16		$	(0.02	)	$	0.11
Diluted		0.15			(0.02		)	0.10
Earnings per common share (EPS):
Basic		0.16			(0.00		)	0.12
Diluted		0.15			(0.00		)	0.11
Weighted average common shares:
Basic		40,605			39,762			40,415
Diluted		42,181			39,762			42,015

 

 

		March 29, 2004			December 31, 2003
SELECTED BALANCE SHEET DATA
Cash and short-term investments		$	37,235		$	31,745
Accounts receivable, net		34,956			28,519
Inventories, net		10,353			8,617
Total current assets		88,264			74,887
Net property, plant and equipment		44,551			43,536
Other assets		83,524			87,434
Total assets		216,339			205,857
Current maturities of long-term debt		$	4,444		$	4,444
Other current liabilities		21,451			18,091
Long-term liabilities		4,712			4,995
Shareholders’ equity		185,732			178,327
Total liabilities and shareholders’ equity		216,339			205,857

 

		First Quarter						Fourth Quarter
		2004			2003			2003
SUPPLEMENTAL DATA
EBITDA (before extraordinary gain)		$	12,721		$	897		$	9,863
EBITA (before extraordinary gain)		$	10,761		$	(1,036	)	$	7,883
Gross margin		30.0		%	11.4		%	26.1		%
EBITDA (before extraordinary gain) margin		22.0			2.3			18.2
Operating margin		18.1			(3.4		)	13.1
End Market Breakdown:

 

		First Quarter
		2004		2003
Networking/communications		39.7	%	33.6	%
High-end computing		33.7		41.0
Industrial/medical		13.4		10.6
Computer peripherals		7.4		9.6
Handheld		2.4		1.7
Other		3.4		3.5

 

		First Quarter						Fourth Quarter
		2004			2003			2003
RECONCILIATIONS*
EBITA/EBITDA (before extraordinary gain) reconciliation:
Net income (loss)		$	6,526		$	(150	)	$	4,655
Add back items:
Extraordinary gain		—			(824		)	(411		)
Income taxes		3,850			(456		)	2,788
Interest expense		120			155			132
Amortization of debt issuance costs		27			16			26
Interest income and other		(92		)	(77		)	(83		)
Amortization of intangibles		330			300			330
Non-cash restructuring charge for impairment of building and equipment		—			—			446
EBITA (before extraordinary gain)		10,761			(1,036		)	7,883
Depreciation of property, plant and equipment		1,960			1,933			1,980
EBITDA (before extraordinary gain)		$	12,721		$	897		$	9,863

 

* This information provides a reconciliation of EBITA/EBITDA (before extraordinary gain) to the financial information in our consolidated statements of operations.