Exhibit 99.1

 

Contact:		Stacey Peterson
		Chief Financial Officer
		714/241-0303

 

TTM TECHNOLOGIES, INC. REPORTS SECOND QUARTER 2005 RESULTS

 

SANTA ANA, CA – July 27, 2005 – TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical and technologically advanced printed circuit boards, today reported results for the second quarter of 2005.

 

Second-Quarter Results

 

Second quarter 2005 net sales decreased 7 percent to $57.2 million, compared to $61.6 million for the second quarter of 2004.  Sequentially, from the first quarter of 2005, net sales decreased $1.7 million, or 3 percent.  The sequential decline resulted from declining prices, partially offset by higher volumes.

 

Quick-turn business remained stable in the second quarter and represented 22 percent of net sales, compared to 21 percent for the second quarter of 2004 and 21 percent for the first quarter of 2005.

 

Gross margin decreased to 19.3 percent for the second quarter of 2005, compared to 31.0 percent for the second quarter of 2004 and 23.0 percent for the first quarter of 2005.  Gross margins during the second quarter of 2005 were negatively affected by lower prices, reduced operating efficiency due to back-end loaded shipments, and higher wage and benefits costs.

 

General and administrative expenses of $3.0 million in the second quarter declined from $3.8 million in the year-ago period and $3.4 million in the first quarter of 2005.  Sequentially, lower Sarbanes Oxley compliance costs and incentive compensation were partially offset by higher legal expenses.

 

TTM posted an operating profit of $4.8 million for the second quarter of 2005, down from $11.0 million for the second quarter of 2004 and $6.8 million for the first quarter of 2005.   The decline in gross profit, as described above, was the primary cause.

 

Net income for the second quarter of 2005 was $3.3 million, or $0.08 per diluted share, compared with $4.5 million, or $0.11 per diluted share, for the first quarter of 2005, and $6.9 million, or $0.17 per diluted share, for the second quarter of 2004.

 

EBITDA (earnings before interest, taxes, depreciation and amortization) for the second quarter of 2005 was $7.9 million, compared with $13.5 million for the second quarter of 2004 and $9.7 million for the first quarter of 2005.

 

In the second quarter of 2005, TTM generated cash flow from operations of $3.7 million, enabling it to fund net capital expenditures of $2.2 million, while expanding its cash and short-term investments to a total of $63.6 million.

 

“Volume remained healthy in the second quarter, increasing 2 percent from the first quarter of 2005, as order and shipment activity built over the course of the quarter,” said

 

 

…/2 TTM

 

Kent Alder, President and CEO of TTM Technologies.  “But the back-end loaded shipment pattern reduced operating efficiency, while pricing was lower than anticipated.”

 

Outlook

 

For the third quarter of 2005, TTM is estimating revenues of $57 million to $60 million and earnings of $0.07 to $0.10 per diluted share.  “To date, third quarter order rates are at higher levels than we experienced at the beginning of the second quarter, but we continue to see pricing pressure,” concluded Alder.

 

Other Announcements

 

TTM also announced today that Stacey Peterson, the company’s Chief Financial Officer, will be leaving to accept a position as chief financial officer of a Los Angeles-based company.

 

“Stacey has been a tremendous asset to TTM,” stated Kent Alder.  “Among her many accomplishments, she has established effective financial controls and put in place a talented financial team that will serve our company well.  The company has retained an executive search firm to find a successor.  In the meantime, Stacey will help with the transition until a new CFO is named.”

 

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 second-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 August 3, 2005, 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 SEC filings.

 

- Tables Follow -

 

 

TTM TECHNOLOGIES, INC.

 

Selected Unaudited Financial Information

 

(In thousands, except per share data)

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

		Second Quarter						First Quarter			First Two Fiscal Quarters
		2005			2004			2005			2005			2004
Net sales		$	57,216		$	61,595		$	58,883		$	116,099		$	119,291
Cost of goods sold		46,179			42,519			45,345			91,524			82,935
Gross profit		11,037			19,076			13,538			24,575			36,356
Operating expenses:
Selling and marketing		2,865			3,118			3,017			5,882			6,159
General and administrative		3,035			3,812			3,404			6,439			7,320
Amortization of intangibles		301			301			300			601			601
Restructuring charges		—			855			—			—			855
Total operating expenses		6,201			8,086			6,721			12,922			14,935
Operating income		4,836			10,990			6,817			11,653			21,421
Interest expense		(49		)	(107		)	(51		)	(100		)	(227		)
Amortization of debt issuance costs		(13		)	(26		)	(13		)	(26		)	(53		)
Interest income and other, net		462			116			384			846			208
Income before income taxes		5,236			10,973			7,137			12,373			21,349
Income tax provision		(1,964		)	(4,063		)	(2,677		)	(4,641		)	(7,913		)
Net income		$	3,272		$	6,910		$	4,460		$	7,732		$	13,436
Earnings per common share:
Basic		$	0.08		$	0.17		$	0.11		$	0.19		$	0.33
Diluted		$	0.08		$	0.17		$	0.11		$	0.19		$	0.32
Weighted average common shares:
Basic		41,267			40,759			41,078			41,171			40,683
Diluted		41,772			41,851			41,784			41,778			42,014

 

 

SELECTED BALANCE SHEET DATA

 

		July 4, 2005			December 31, 2004
Cash and short-term investments		$	63,588		$	58,538
Accounts receivable, net		37,626			35,778
Inventories, net		11,174			8,993
Total current assets		115,684			106,334
Net property, plant and equipment		53,739			52,174
Other assets		74,456			77,262
Total assets		243,879			235,770
Current liabilities		$	20,638		$	23,689
Long-term liabilities		2,533			455
Shareholders’ equity		220,708			211,626
Total liabilities and shareholders’ equity		243,879			235,770

 

SUPPLEMENTAL DATA

 

		Second Quarter						First Quarter			First Two Fiscal Quarters
		2005			2004			2005			2005			2004
EBITDA		$	7,887		$	13,491		$	9,683		$	17,570		$	26,303
EBITA		$	5,628		$	11,436		$	7,530		$	13,158		$	22,288
Gross margin		19.3		%	31.0		%	23.0		%	21.2		%	30.5		%
EBITDA margin		13.8			21.9			16.4			15.1			22.0
Operating margin		8.5			17.8			11.6			10.0			18.0

 

End Market Breakdown:

 

		Second Quarter
		2005		2004
Networking/communications		43.5	%	42.7	%
High-end computing		29.6		27.9
Industrial/medical		15.3		18.8
Computer peripherals		5.1		4.2
Handheld		3.1		2.8
Other		3.4		3.6

 

RECONCILIATIONS*

 

		Second Quarter						First Quarter			First Two Fiscal Quarters
		2005			2004			2005			2005			2004
EBITA/EBITDA reconciliation:
Net income		$	3,272		$	6,910		$	4,460		$	7,732		$	13,436
Add back items:
Income taxes		1,964			4,063			2,677			4,641			7,913
Interest expense		49			107			51			100			227
Amortization of debt issuance costs		13			26			13			26			53
Amortization of intangibles		330			330			329			659			659
EBITA		5,628			11,436			7,530			13,158			22,288
Depreciation expense		2,259			2,055			2,153			4,412			4,015
EBITDA		$	7,887		$	13,491		$	9,683		$	17,570		$	26,303

 

* This information provides a reconciliation of EBITA/EBITDA to the financial information in our consolidated statements of operations.

 

“EBITDA” means earnings before interest expense, income taxes, depreciation and amortization.  “EBITA” means earnings before interest expense, income taxes and amortization.  We present EBITDA / EBITA to enhance the understanding of our operating results.  EBITDA / EBITA is a key measure we use to evaluate our operations.  In addition, we provide our EBITDA / EBITA because we believe that investors and securities analysts will find EBITDA / EBITA to be a useful measure for evaluating our operating performance and comparing our operating performance with that of similar companies that have different capital structures and for evaluating our ability to meet our future debt service, capital expenditures, and working capital requirements. However, EBITDA / EBITA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to net income as a measure of operating results in accordance with accounting principles generally accepted in the United States.