SANTA ANA, Calif., Nov. 4, 2010 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (Nasdaq:TTMI), a major global printed circuit board (PCB) manufacturer, today reported results for the third quarter of 2010, ended September 27, 2010.
Third Quarter 2010 Highlights
- Net sales increased 15 percent sequentially to a record $357.8 million.
- GAAP net income attributable to stockholders grew sequentially to $29.1 million, or $0.36 per diluted share
- Non-GAAP net income attributable to stockholders increased sequentially 75 percent to $35.0 million, or $0.43 per diluted share.
- Gross margins increased to 22.5 percent.
- The combination with Meadville Holdings Ltd. was highly accretive to GAAP earnings, adding $0.15 per diluted share this quarter.
- The integration of the two companies is progressing well.
Financial Results
Net sales for the third quarter of 2010 increased to $357.8 million from $310.2 million in the second quarter of 2010.
Operating income for the third quarter 2010 increased 163 percent to $45.7 million from $17.4 million in the second quarter. The second quarter results included charges of $14.6 million related to plant closures, impairment of long-lived assets, transaction costs, and inventory fair value adjustments.
GAAP net income attributable to stockholders for the third quarter of 2010 was $29.1 million, or $0.36 per diluted share, compared to $4.9 million, or $0.06 per diluted share for the second quarter of 2010. The results for the third quarter of 2010 included a $1.8 million foreign exchange gain and a decrease in the estimated annual effective tax rate that combined contributed $0.04 per diluted share.
On a non-GAAP basis, net income attributable to stockholders for the third quarter of 2010 was $35.0 million, or $0.43 per diluted share. This compares to second quarter of 2010 non-GAAP net income attributable to stockholders of $19.9 million, or $0.26 per diluted share.
Adjusted EBITDA for the third quarter of 2010 was $62.1 million, or 17.4 percent of net sales, compared to $32.6 million, or 10.5 percent of net sales for the second quarter of 2010.
Please refer to the tables below for a reconciliation between GAAP and non-GAAP net income attributable to stockholders and adjusted EBITDA.
"By all measures our third quarter business performance was outstanding," said Kent Alder, President and CEO of TTM. "We achieved record revenue and profitability, exceeding the guidance we provided for the quarter. The recently completed combination with Meadville has clearly been a transformative event for TTM. Integration is progressing well as evidenced by the strength of our results for the third quarter."
"Both our North American and Asian facilities continue to experience solid backlogs and high levels of capacity utilization. Our scale, diversified customer base and end markets, as well as the strategic initiatives we have taken to date to enhance operating efficiencies, have combined to drive better results. All of these factors increase our confidence in our position for long-term growth," concluded Alder.
Business Outlook
For the fourth quarter of 2010, TTM estimates revenue will be in the range of $351 million to $367 million, GAAP earnings attributable to stockholders in a range from $0.28 to $0.35 per diluted share and non-GAAP earnings attributable to stockholders in a range from $0.35 to $0.42 per diluted share.
To Access the Live Webcast/Conference Call
The company will host a conference call and webcast to discuss the third quarter results and the fourth quarter 2010 outlook on November 4, 2010, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific 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 1-800-762-8795 or 1-480-248-5081.
To Access a Replay of the Webcast
The call will be available for replay until November 11, 2010, on TTM Technologies' website at www.ttmtech.com.
A telephone replay also will be available beginning two hours after the conclusion of the conference call. You may access the telephone replay by dialing 1-303-590-3030 or 1-800-406-7325 and entering confirmation code 4377086.
About Our Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP net income attributable to stockholders and non-GAAP earnings per share attributable to stockholders, which are non-GAAP financial measures. Management believes that both measures -- which add back amortization of intangibles, stock-based compensation expense, non-cash interest expense on debt, asset impairment and restructuring charges, inventory adjustments, costs related to the Meadville Holdings transaction and miscellaneous closing 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.
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 a major global 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 .
The TTM Technologies logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5691
- Tables Follow -
TTM Technologies, Inc. Reports 2010 Third Quarter Results
CONTACT: TTM Technologies, Inc. Steve Richards, CFO 714-327-3000