TTM Technologies, Inc. Reports Second Quarter 2008 Results

Financial & Operational Highlights

-- Second quarter 2008 net sales of $173.0 million were in line with the Company's guidance, and gross margin of 21.1 percent exceeded the Company's guidance.

-- The Company completed a successful convertible debt offering and used a portion of the proceeds to retire the remaining balance of the term loan debt associated with the Printed Circuit Group acquisition.

Second Quarter 2008 Financial Results

Kent Alder, President and CEO of TTM, noted, "Results for the second quarter continued our long history of delivering solid financial performance. Our gross margin and our diluted earnings per share, when adjusted for costs related to repaying our debt, exceeded our expectations." Alder continued, "The Aerospace/Defense end market showed continued strength, and we again saw strong demand for our high tech manufacturing services."

Second quarter net sales of $173.0 million decreased from first quarter 2008 net sales of $174.1 million and were in line with the Company's guidance.

Second quarter 2008 gross margin of 21.1 percent declined slightly from first quarter 2008 gross margin of 21.6 percent but exceeded the high end of the guidance range.

Selling and marketing expense for the second quarter was $7.8 million, representing 4.5 percent of net sales. This is consistent with first quarter selling and marketing expense of $7.7 million, representing 4.4 percent of net sales.

Second quarter general and administrative expense, including amortization of intangibles, was $9.8 million, representing 5.7 percent of net sales. This compares to general and administrative expense, including amortization of intangibles, for the first quarter of $9.2 million, representing 5.3 percent of sales. General and administrative expense increased in the second quarter due to higher incentive compensation and stock-based compensation expense.

Operating expenses totaled $17.5 million in the second quarter. During the first quarter of 2008, TTM reduced operating expenses by $3.7 million due to a metal reclamation recovery. Absent this reduction in expense, first quarter operating expenses would have totaled $16.9 million.

TTM posted second quarter operating income of $19.1 million, which compares to first quarter operating income of $24.4 million, which included the aforementioned $3.7 million metal reclamation recovery.

Other expense in the second quarter was $4.1 million compared to $1.6 million in the first quarter. This increase is largely attributable to the write-off of the remaining financing costs and the unwinding of a hedge related to the Company's term loan, which was repaid in May with the proceeds from the convertible debt offering. TTM recorded $1.9 million in expense to amortize the remaining financing costs and $1.2 million to unwind the hedge.

Second quarter net income of $9.4 million, or $0.22 per diluted share, was in line with guidance and compares with first quarter net income of $14.4 million, or $0.34 per diluted share. Net income in the first quarter benefited by $3.7 million, or about $0.05 per diluted share, from the metal reclamation recovery. Net income decreased in the second quarter by $3.1 million, or about $0.04 per diluted share, due to the costs discussed above related to the term loan repayment.

EBITDA (earnings before interest, taxes, depreciation and amortization) for the second quarter was $24.5 million, or 14.1 percent of sales, compared with first quarter EBITDA of $31.0 million, or 17.8 percent of sales. (A reconciliation of this non-GAAP measure is provided after the GAAP financial statements accompanying this press release.)

Second Quarter Segment Information - PCB Manufacturing and Backplane Assembly

TTM Technologies reports two operating segments: PCB Manufacturing and Backplane Assembly.

For the PCB Manufacturing segment, second quarter net sales (before inter-company sales) were $149.6 million, compared with $148.7 million in the first quarter. Second quarter operating segment income (before amortization of intangibles) was $17.8 million, compared with $22.7 million in the first quarter.

For the Backplane Assembly segment, second quarter net sales (before inter-company sales) were $31.2 million, compared with $32.6 million for the first quarter. Second quarter operating segment income (before amortization of intangibles) was $2.2 million, compared with $2.7 million in the first quarter.

Balance Sheet

Cash and cash equivalents at the end of the second quarter totaled $118.7 million, compared with $32.6 million at the end of the first quarter. The substantial increase in cash is primarily attributable to the successful convertible debt offering the Company completed during the quarter.

Third Quarter Fiscal Year 2008 Forecast

For the third quarter of 2008, TTM estimates revenues in a range of $163 million to $171 million and earnings in a range of $0.19 to $0.25 per diluted share.

To Access the Live Web Cast/Conference Call

The company will host a conference call to discuss the second quarter results and third quarter outlook on July 29, 2008, at 4:30 p.m. Eastern Daylight Time (1:30 p.m. Pacific Daylight Time).

To listen to the live web cast, log on to the TTM Technologies website at http://www.ttmtech.com. To access the live conference call, dial 303-262-2137 or 800-218-4007.

To Access a Replay of the Web Cast

A digital replay will be available on TTM Technologies' website at http://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 August 5, 2008. You may access the telephone replay by dialing 303-590-3000 or 800-405-2236 and entering confirmation code 11117066#.

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 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.

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. Selected Unaudited Financial Information (In thousands, except per share data) ---------------------- --------- ------------------- Second First First Two Quarter Quarter Fiscal Quarters ---------------------- --------- ------------------- 2008 2007 2008 2008 2007 --------- ------------ --------- --------- --------- CONSOLIDATED STATEMENTS OF OPERATIONS Net sales $172,975 $162,016 $174,071 $347,046 $338,913 Cost of goods sold 136,395 132,470 136,469 272,864 274,646 --------- ------------ --------- --------- --------- Gross profit 36,580 29,546 37,602 74,182 64,267 --------- ------------ --------- --------- --------- Operating expenses: Selling and marketing 7,750 7,551 7,714 15,464 15,111 General and administrative 8,825 7,890 8,205 17,030 16,232 Amortization of definite-lived intangibles 950 1,046 947 1,897 2,071 Metal reclamation - - (3,700) (3,700) - --------- ------------ --------- --------- --------- Total operating expenses 17,525 16,487 13,166 30,691 33,414 --------- ------------ --------- --------- --------- Operating income 19,055 13,059 24,436 43,491 30,853 Interest expense (3,288) (3,368) (1,835) (5,123) (8,466) Interest income and other, net (843) 236 284 (559) 995 --------- ------------ --------- --------- --------- Income before income taxes 14,924 9,927 22,885 37,809 23,382 Income tax provision (5,480) (3,743) (8,513) (13,993) (8,733) --------- ------------ --------- --------- --------- Net income $ 9,444 $ 6,184 $ 14,372 $ 23,816 $ 14,649 ========= ============ ========= ========= ========= Earnings per common share: Basic $ 0.22 $ 0.15 $ 0.34 $ 0.56 $ 0.35 Diluted $ 0.22 $ 0.15 $ 0.34 $ 0.56 $ 0.35 Weighted average common shares: Basic 42,676 42,199 42,429 42,553 42,174 Diluted 43,080 42,496 42,736 42,908 42,447 SELECTED BALANCE SHEET DATA ---------------------- June 30, December 31, 2008 2007 --------- ------------ Cash and cash equivalents $118,687 $ 18,681 Accounts receivable, net 118,197 118,581 Inventories 78,348 65,675 Total current assets 331,263 219,936 Property, plant and equipment, net 122,874 123,647 Other non- current assets 166,977 155,215 Total assets 621,114 498,798 Current portion long-term debt $ - $ 40,000 Accounts payable 51,515 53,632 Total current liabilities 81,350 121,097 Long-term liabilities 177,453 49,107 Stockholders' equity 362,311 328,594 Total liabilities and stockholders' equity 621,114 498,798 -------- -------

SUPPLEMENTAL DATA ------------------------------------------------ First Two Second First Fiscal Quarter Quarter Quarters ------------------------------------------------ 2008 2007 2008 2008 2007 --------- --------- --------- --------- -------- EBITDA $ 24,460 $ 20,113 $ 30,976 $55,436 $45,581 EBITA $ 19,191 $ 14,369 $ 25,696 $44,887 $33,977 Gross margin 21.1% 18.2% 21.6% 21.4% 19.0% EBITDA margin 14.1 12.4 17.8 16.0 13.4 Operating margin 11.0 8.1 14.0 12.5 9.1 End Market Breakdown: ----------------------------- Second First Quarter Quarter ----------------------------- 2008 2007 2008 --------- --------- --------- Networking/ Communications 40% 42% 42% Aerospace/Defense 36 30 34 Computing/Storage/ Peripherals 11 15 12 Medical/Industrial/ Instrumentation/Other 13 13 12 Stock-based Compensation: ----------------------------- Second First Quarter Quarter ----------------------------- 2008 2007 2008 --------- --------- --------- Amount included in: Cost of goods sold $ 390 $ 255 $ 233 Selling and marketing 118 48 73 General and administrative 970 581 685 --------- --------- --------- Total stock-based compensation expense $ 1,478 $ 884 $ 991 ========= ========= ========= Operating Segment Data: ------------------- --------- Second First Quarter Quarter ------------------- --------- Net sales: 2008 2007 2008 --------- --------- --------- PCB Manufacturing $149,596 $138,651 $148,705 Backplane Assembly 31,160 32,164 32,570 --------- --------- --------- Total Sales 180,756 170,815 181,275 Inter-Company Sales (7,781) (8,799) (7,204) --------- --------- --------- Total Net Sales $172,975 $162,016 $174,071 --------- --------- --------- Operating Segment Income: PCB Manufacturing $ 17,780 $ 12,019 $ 22,679 Backplane Assembly 2,225 2,086 2,704 --------- --------- --------- Total Op Segment Income 20,005 14,105 25,383 Amortization of Intangibles (950) (1,046) (947) --------- --------- --------- Total Op Income 19,055 13,059 24,436 Total Other Income (Expense) (4,131) (3,132) (1,551) --------- --------- --------- Income Before Income Taxes $ 14,924 $ 9,927 $ 22,885 ========= ========= ========= RECONCILIATIONS(a) ------------------------------------------------ First Two Second First Fiscal Quarter Quarter Quarters ------------------------------------------------ 2008 2007 2008 2008 2007 --------- --------- --------- --------- -------- EBITA/EBITDA reconciliation: Net income $ 9,444 $ 6,184 $ 14,372 $23,816 $14,649 Add back items: Income taxes 5,480 3,743 8,513 13,993 8,733 Interest expense 3,288 3,368 1,835 5,123 8,466 Amortization of intangibles 979 1,074 976 1,955 2,129 --------- --------- --------- --------- -------- EBITA 19,191 14,369 25,696 44,887 33,977 Depreciation expense 5,269 5,744 5,280 10,549 11,604 --------- --------- --------- --------- -------- EBITDA $ 24,460 $ 20,113 $ 30,976 $55,436 $45,581 ========= ========= ========= ========= ======== (a) 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 of America.

SOURCE: TTM Technologies, Inc.

Corporation: TTM Technologies, Inc. Steve Richards, Chief Financial Officer 714-241-0303 investor@ttmtech.com or Investors and Media: Guerrant Associates Laura Guerrant 808-882-1467 lguerrant@guerrantir.com