TTM Technologies, Inc. (TTMI)

TTM Technologies is a leading North American manufacturer of time-critical and technologically complex printed circuit boards (PCBs), which serve as the foundation of sophisticated electronic products. The company serves high-end commercial markets like the networking and communications infrastructure, high-end computing, and industrial and medical markets. Its customers include original equipment manufacturers and electronic manufacturing services (EMS) companies.

For the fourth quarter of 2006, the company posted revenue of 144.3 million with net sales increasing 90% over third quarter and 129% over the year ago quarter, and earnings per diluted share of $0.12. The company also completed the acquisition of the Printed Circuit Group (PCG) during the quarter which diversifies its customer base and broadens its end market exposure. In addition, the acquisition also provides TTM with a significant opportunity to cross sell its quick-turn capabilities to PCG’s customer base. Due to the acquisition the company’s customer base has increased considerably, simultaneously reducing its exposure to cyclical downturns within the various industries it serves.

The company’s top five customers for the company in 2006 were CISCO, IBM, Juniper, Motorola and Raytheon which are the worlds leading electronic appliances manufacturers. Additionally, with almost all electronic products containing a printed circuit board, the global PCB market is expected to grow by a mid-single-digit percentage per year through the end of 2010.

Currently, the utilization rates in the North American and global PCB industry are relatively high due to a recovery in end-market demand over the past few years. Post acquisition, TTM has become the largest circuit board manufacturer in this region and is very well positioned to capture the growing $4.5 billion PCB market. It is expected that as the company progresses forward owing to the growing demand, its share price will tend to follow the suite.