TTMI - Earnings call transcript Q2 2022

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Operator

Good day, everyone, and welcome to the TTM Technologies Second Quarter 2022 Financial Results Conference Call. [Operator Instructions] Sameer Desai, TTM's Vice President of Corporate Development and Investor Relations, will now review TTM's disclosure statement. Please go ahead.

Sameer Desai

Thank you, April.

Before we get started, I would like to remind everyone that today's call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to TTM's future business outlook. Report materially risks forward-looking factors Securities and our recent differ one due explained and could and most more XX-K or uncertainties, Annual Exchange results Commission. from with statements these to in other Actual filings Form the on including the These are management's based expectations of assumptions as forward-looking date of statements the this on and presentation. future circumstances, as to any of TTM as revise a of law. does or result not other publicly undertake update events new required by information, any except statements, whether or obligation these refer the the Please and found risks may affect registration Form to reports XX-K, the S-X the Form company's be may other that statement the disclosures on X-K, XX-Q, SEC regarding TTM, filings. in on which

such GAAP, considered which SEC Such and should measures presented at We to the will also GAAP you a TTM's discuss on in company's as www.ttm.com. reconciliation filed to in on this non-GAAP measures adjusted website measures accordance not measures was the as of prepared we be call for is available financial substitute direct the press certain and with with EBITDA. release, included and the non-GAAP

will the refer TTM's We on that like will a call. Officer. our Please to Executive Chief call turn now I during sir. slide have we to over to our Edman, deck website posted also Tom ahead go

Tom Edman

our financial XXXX CFO, will of a an our followed I'll guidance. a quarter of joining with you the you, our strategy. call. second for QX our our performance business of us highlights Thank begin Todd overview results, quarter our thank second year Good for Schull, with quarter and afternoon, a by conference Sameer. fiscal XXXX of our and QX and from review XXXX discussion follow business summary

on on highlights We and chain with the delivered up of the despite We second above on and continued labor also non-GAAP the website. having increase. the turned commercial growth the of shown year X and high open outstanding tailwinds. investor that call challenging is in QX quarter's guidance drove our the a The quarter year-on-year are end double-digit over many headwinds revenues the into environment faced past an quarter supply margins jump consecutive XXXX, to Slide will TTM of impact presentation TTM's of markets questions. significant the In as posted in that we business. year-on-year, COVID-XX your then saw XX.X% our second EPS Revenues quarter the profit our of have as cost were a

globally, weakened and as saw in foreign we dollar, improved productivity North lower Chinese rates mix favorable the exchange RMB prices product Specifically, against America. the improved metal

had strong contributed will though proud very extremely of the offset year. in the made discussed is anticipated We that improvement we positive to outstanding of increase have in in through balance specific that quick-turn we profitability. results I previously delivering this enjoyed levels also North quarter. our quarter adjustments America our pay Since am then, the in business year first for this our employees competitiveness. We that of compensation still still price The labor are on ability a regions. attract tight the our margins to these talent, general and retain have of seen market increases impact to higher costs our a to

on the will price margin in increases normalize a expect QX, basis. sequential margin We business, in from elevated and that high improvements the realized offset QX quick-turn will

to expected a be are margins year-on-year our However, basis. on up

on commitment report CSR. is website the to provide social a initiatives CSR the that journey we would TTM is way of are do would I our more and be And now part section. highlights published strategic to report ESG differentiated. business. TTM or I Finally, to the About and transform that less Sustainability our or on governance like responsibility on to TTM integral the environmental, business available first like it page our to and The update. mention social TTM's cyclical corporate, an a under

As quarter, closed Telephonics. of transition, acquisition second of we this the part the the end strategic of near

Over engineering that offering in we RF a into product level to strategy and and approach to while into market. strengthening Anaren we TTM radar emphasized highly key that system components on past critical TTM's the position product subassemblies adding product which in aerospace and deliver higher our is RF has surveillance builds as Anaren, broadened our In years, systems. engineered part several consistently engineered and the portfolio our and to particularly the broadening Telephonics to customers, solutions the value solutions TTM's of TTM's as defense and add XXXX, aerospace disciplined customer-driven resources. by vertically and further capability into culture horizontally communications well engineering defense and manufacturing and acquired markets,

potentially defense market and which stability aerospace a the of will be will uncertain end markets. for environment forward, demand and Going commercial in approximately provide growth XX% revenues,

XX% and revenues over be from integrated A&D In the XX% electronic addition, less overall engineered being PCBs with contribution. of products of will than

be on is direct broke response Adding a to on new ground build the XX, our increasing another state-of-the-art, highly April Malaysia. The our decision customer's a immediately to accretive this facility new of to Penang, PCB assist sourcing markets, particular, we transaction EPS. will diversification, in and concerns and about will center advanced automated element Finally, telecom, factory and differentiation supply instrumentation. such in computing manufacturing our networking and new outside data Malaysia The commercial and in multi-layer PCB the resiliency in locations for industrial customers China. options strategy, in medical, need as facility regional chain of

Lastly, this base COVID America. employee cases increased Earlier year, you with I situation. our in our to impacted North on would COVID-XX update like

our meaningfully contributed than this America China we to closely growth larger We but adjust we in situation this understand facilities was in and North Pacific, was protocols monitoring by smaller again are in are our accordingly. COVID in and our from second which COVID-related growing the our reduced stronger more quarter, facilities productivity. China. Asia Southern and of will one the In cases increased However, offset disruptions in saw Shanghai,

Page which on to in like and of I'd budgets XX% With Telephonics compared represented our to backlog of continue solid XX% of bookings our of sales investor to sales and XXXX. our a market our million, positive to backlog sales than demand This performed defense of experience Now defense is alignment included, year a defense compared program X the and in program is defense on program programs. quarter and our website. review end result XXXX strong presentation strategic tailwind QX positive aerospace referenced $X.XX Telephonics expectations second QX $XXX key end franchise billion. better XX% climate, total The with are market market markets, million our at our ongoing A&D a $XXX ago. a excluding and for The in we

Fighter During Joint and the saw for quarter, airborne other we significant Strike programs. and programs, including space bookings the several

QX second from contributed end the MI&I in sales and than end represent about in full quarter. in expected a XX% all sales, expect XX% sales market total fifth XXXX. of of total across exceeding XX% near We our was million compared year-on-year, in Telephonics much instrumentation this revenue the acquisition the to second broad-based the and as better in of in of quarter to of our a $XXX closed segments. The market the market quarter end our industrial, first row quarter performing including up it year XX% quarter The with as quarterly set XX% record, for strength ago a new quarter the medical,

the expectations during XXXX in is X%, million represented for quick-turn third MI&I of business face the the this of year. will had the year than rate Automotive revenues of year-over-year start For exceeded we to to better growth QX first normalizes during $XXX grew in strength the which the of the of year-to-date, as row. in Automotive the ago be the market third the line to quarter Due XX% of elevated the and sales quarter market quarter, long-term projections to XX% second select we customers XX% be shortages. X.X% and above this we XX% third-party in XXXX. total a QX expect compared and at X% expect component quarter in in sales quarter

chain despite semiconductor supply that caused We automotive Ukraine-Russia and shortages OEM automotive impact the combined continue disruptions conflict to by production. PCBs, impacting COVID, see all year-on-year of growth are the demand and for

XX% quarter market However, contribute sales growth the data first our business compared in XX% the represented rates the are XX% XX% QX. in moderating end in was primarily customers. Sales year-on-year, This of PCB growth from to of due somewhat of and to in total expect of sales our second we quarter data XXXX. end computing automotive XXXX market QX total center to in center and XX% up

XX% expect saw quarter count our We layer strong This as market to end in basis to revenues expect in customers. center we compared for approximately quarter revenue be XXXX boards of Networking, market the in of this of We and data the first growth. continues third accounted capacity quarter networking sales to telecom communications as relative compares center second to QX, year-on-year networking to second we strength continue year-on-year revenue represent of of computing XXXX. the to of in on XXXX. as high of end a XX% In XX% revenue. for during quarter XX% demand this XX% drive data allocate and to

presentation. also Page details This X some available is our cover I'll Next quarter. from of earnings second the information on

our compares quarter XX% accounted the engineered approximately year quarter, XX% HDI, subsystems technology in flex ago for rigid our components, advanced and revenue. includes to of QX. approximately During RF which business, the in products XX% and and and This

XX% new programs the that compared leverage products and ago customer pursue technology increase to new our Capacity new markets. and was in business Asia advanced capabilities opportunities XX% in QX and activities and in quarter Pacific design utilization continuing are XX% We year to engineered engagement will QX. in in

additional in utilization direct America, QX. the in and was caused North America compared overall have the quarter lower Our non-plating in and regions. we that XX% processes QX to was shortages This labor ago added rate by XX% plating XX% year capacity bottlenecks in in capacity North in in certain

last quarter of QX, end in in million second not end the year X the customers the which customer XX-day at XX-day had first QX to our to $XXX.X top XX% quarter of is XX% $XXX.X backlog Our the the $XXX.X above and our one including backlog, million compared at Telephonics of With the of end At million. We compared included, end contributed quarter $XXX.X cancellations, first sales at of second the subject was quarter. XX% XXXX Telephonics, of quarter. the of XXXX. to in was the million total

X book-to-bill ratio Our X.XX months was X. for ending July the

inventories will commercial business. to our line impacts look on expected we economic managing as and fourth deliveries. to seen customers As influences quarter continue we with To beyond, forward to chip minor up we the focus monitor date, semiconductor global specific closely on have

acquisition, in robust conclude should Telephonics business, and and continues I'd continuing the we our strategic differentiate and solutions. backlog to for will to want expect and countercyclical strong with to if Our however provide contribute our the by the and weaken. be that mission critical our customers. like element also to the thank conditions both of Malaysia of we our for a aerospace of commercial defense highlighting moves I again the in inspiring TTM employees quarter which the technology significant made groundbreaking to completion market our further to innovation TTM to

TTM performed and expected chain a direct employees business we supply Our and result partners' support our better of as our efforts concerted our customers. much to than

our review quarter. for financial will Todd the Now performance Todd? second

Todd Schull

little and be on I'm reviewing are of Slide our over as hope good that is website. everyone. Tom, I our posted presentation a quarter that me. release bear and well sound financial also on second as distributed a with shown X apologize congested. I results Thanks, if Today, earnings I in press cold the getting afternoon, the I'll for our you'll today

income year. in for data in the quarter, $XX.X the computing to to $XX.X to income instrumentation. million net $XX.X markets, quarter was center or included medical, sales which our and second million and $XXX.X in to of net of net commercial costs. were the XXXX my $X.XX quarter This share. This quarter million was basis, compares strong $XXX.X the XXXX. million, of second particularly second The GAAP second acquisition-related compared second year-over-year last quarter per million of was compares growth quarter of revenue $XX.X of diluted per in million performance. of For industrial increase share XXXX diluted in operating due financial non-GAAP On primarily $XX.X remainder in on focus XXXX. will or the the $X.XX million GAAP comments income of second our a GAAP The

in XX%, of the XX% Our We of with to or and non-GAAP a This the more net non-GAAP was ago. second XXXX. financial in higher $XX.X sales better pricing items million partially Mobility was expense facilitate investors a earlier as company The year through year-on-year or X.X% to costs, expectations and management higher second business we performance excludes M&A-related net $XX.X revenues, particularly see certain since year-on-year and or present offset margin increase sales be our non-cash items. the marketing well material the the North of costs, to mix, enable versus quarter from and to million unusual competitive quick-turn as information of where level by the to in expense and in comparisons levels prior costs, product divestiture Selling periods. in higher restructuring Gross the adjustment frequent and had America other compares the of second X.X% fall-through business. highest to costs. year labor the quarter was due quarter special eyes of wage higher

Second X.X% of in sales year net 'XX, of year. of the sales R&D X.X% last same or quarter expense $X.X the X% In in to ago to or second million $XX.X quarter. million or G&A was the million compared X.X% $X of compared quarter revenues net or $XX.X quarter million was

quarter This in Interest Our in same we compared Mobility the the last last to since X.X% the operating QX outstanding have $XX.X was highest the to quarter divestiture and dealing the year. an been with result our same in $XX.X XX.X%, macro margin year. challenges in million million expense of business. levels the second was compares given quarter

operating of $X.XX of last compares or below a loss QX interest a in year. there the incentives of impact income million During This the and quarter, $X.XX Government EPS. was or million positive exchange $X.X to $X.X line. increased foreign $X.X to EPS million

compares was of of the expense in expense rate $X.X Our the million. million effective tax to rate XX% second quarter, tax X.X% year. or a $X.X This in tax resulting in a prior of

income Adjusted $X.XX million was the the target for the or capital flow $XX.X the was $XX.X XX%. for $XX XX.X% cash quarter share. -- net second revenue $X.XX cash EBITDA operations quarter $XX.X second XX.X% million net with excuse for revenue, compares XXXX million revenue. the strong quarter or revenue. second X.X% per EBITDA and of XX.X% at $XX.X Depreciation million million to was income was of from per Second XXXX was $XX.X me, quarter share. compared net diluted spending for $XX.X of flow million. of $XX.X million million very of or EBITDA quarter Adjusted This of or or diluted adjusted quarter or our of exceeding Free was

million our our positions very above the Telephonics last X.X. $XXX.X of quarter, months' on and debt X.X, and stock acquired was the quarter liquidity net hand. slightly all EBITDA end second cash our $XXX remained completed During were strong. we divided equivalents target that, of XX buyback After And our sheet using million. at and of XXXX Cash program cash the the by balance

stronger had working ratio had to leverage for due a million cash for less second about and million capital is the results expected Our Telephonics better the EBITDA as adjustments. we of acquisition we than quarter $XX than was result outlay anticipated the the $XXX

guidance our to to I'd for quarter. Now turn like the third

of includes revenue to million diluted We the range XXXX million and of of of full quarter for of to -- respectively. share. earnings be $XXX be million. And expect range and $XX revenue non-GAAP the Telephonics This to expect $X.XX a of EPS to from third profit $XXX the total per quarter $X.XX approximately we $X.XX guidance quarter in in

pricing taken such million that stock levels shares, includes business. earlier but positive share have a and and lower the based mitigate in we to is quarter, cost options labor which the expect stock in increases restricted will units. year securities approximately XXX actions We of of a EPS diluted forecast The dilutive impact anticipate on count as quick-turn also

be We of third X.X% SG&A in R&D the X.X% about to quarter that revenue. of will and about expect expense be revenue

to interest total expect $XX.X We expense million. approximately

Finally, following we we between offer rate and developing To your our estimate you XX%. the additional information. assist tax to models, be XX% in effective financial

During interest $XX.X of third expense intangibles the we non-cash expense of stock-based approximately record $X.X $X.X expense be will amortization of of and about to million compensation expect quarter, million, million, about million. approximately depreciation estimate we $XX.X

Needham Summit XX. like questions. Conference Semiconductors IT August be Clean I'd prepared Robotics and and Virtual August Finally, Industrial XxX Hardware on we'll the Tech participating Infrastructure announce our to the I'd now in open August April? the That like line remarks. And Conference to the X, Jefferies and on Jefferies Communications that on Industrial XX concludes Tech, for

Operator

Instructions] we'll [Operator first from you. And Stifel. hear Matt Sheerin of Thank

Matt Sheerin

I couple you're of quarter-on-quarter. over a Yes, wondering, little sort expectations It And you thank what the of auto in different spot again growth had but I'm looks Tom, give us growth And production was on in the of you hoping to a color I Good markets. but sectors, more there's you're some semiconductor than content. the are guys, bit that be for you. quarters maybe a most of strong next can know some and pretty afternoon. other on calling like of the you down just the at supply seeing suppliers. chain end

your So you of it on big then the percentage just I why wanted see in quarter? or as pick-up business, read also, the you did on a how a that? you us slowdown could revenue are And And seeing a quick-turn to sales? then get remind is why

Tom Edman

Sure.

So yes, let automotive me situation. the start with

strong we about year-on-year, down If if a you at on our those across or up sequentially, we're out, pointed our X% pretty yes, down had forecast about automotive, overall, forecast at but -- specifically much again very X%. the growth to are terrific look board, so particularly, as year-on-year we rates. a you so And versus looking quarter and in obviously, in talk quarter,

parcel the plans you the point, when seeing shutdowns what's on summer those that out and bit and in see I in. at to inventory if and Europe think inventory particularly there, pull inventory is impact. levels of it customers So of waiting other customers arrive going In a do we're chips automotive come part when that -- as impacts then Europe. words, pulling shortage semiconductor adjusting chips

So other you're others. quick-turn how in continues seeing Overall, be versus to When in North terms look there see did Asia for it's board, The of particularly really we a some out, we're situation it difference strong there comes automotive right to see, activity pull tied but as to we customers activities terms related is customers. Pacific. America, our of to And can point a and premium crosses market. primarily premiums, that's to at just in this support they in products what critical and new the MII the to activity to development. develop prototyping need but you

the as call, would of how and quarter, a we're quick-turn expecting we're is between again, levels I pace here normal premium normal develops. versus, the we that's see expecting. what come into We'll what third So quick-turn. quarter more And of

is summer, calm tend other here. bit a bit, the down start you And market the that's one little again less As factor get to a to just activity. prototyping with the

don't as this normalized. I unusually if your an percentage? look quarter fingers what of revenue, about terms you Todd, got rather we're I at again, know, numbers seeing can in think versus as we'd you heightened than So being the percentage talk here at and

Todd Schull

this X%. comments. Pacific, much his will quarters, and saw stronger. basis muted more run that we alluded was a Asia we been And what But in it's in run and Tom vary typically -- we around last But of traditionally, in Yes, America as is global XXXX. couple North the then between on to much,

supply was were but accelerating, As match And accelerating to a chain is extending, production another and -- portion for were things their really coming and as tied activity, orders big is people times Tom that expedited of to lead looking lead or mentioned, to as better matching tied were in. mixing parts prototyping times. demand as portion

of we in back driving consistent, is we see as more So that. to more notwithstanding on right spot, time but more the saw which times coming comment to go Tom's gradually are But And through is about our the The type. definitely the that rest the prototyping seasonality is here expected of lead would activity heightened summer expect some that of less time, down, as year. longer term. it's consistent activity component subside we was of lead

Matt Sheerin

you. but acquisition, And will number it impacting you understand into will on see was And margin, thank XX%. just as sounds like are for it that that given like Based the just next any margin then product backing on set? OpEx be synergies you it quarters down there the and cost go either the us, still looks well it why be the over the Okay, sequentially, really gave still or that OpEx I forward, Telephonics gross number. you above obviously gross few company on the the technology that or acquiring still

Todd Schull

pretty Matt, goods infrastructure, that's looking preliminarily for our also. to be by we've be sold, over been cost A hope we both of to the synergy public, here that -- -- get million well expectations. identified going able of impacted synergies the through as of and that as lot XXXX. be to next $XX OpEx We're efficiencies will materials we've end Well, of way certainly, about

a identified. synergies our So on we little margins here are we than now, to that less how legacy expect will see but their them implement improvements we've the about talked margins. margins right in we above We've average their once ours be

Matt Sheerin

Okay. Thanks much. All right. very

Tom Edman

Thanks Matt.

Operator

Next Crawford Riley from we'll B. hear Mike Securities. of

Mike Crawford

clients particularly better manage are what knew semiconductor particular others? decommits particularly your in process there something that doing material others coming pleasantly Is seeing tailwinds Thank sitting side. are that you. on I'm not these you're in, surprised than and when you

Tom Edman

in it. that it's factors, Pacific of to X we've have at accelerated a the Mike, look Well, least been big this at think, we of as these the -- to responding demand. takes semiconductor meeting well I in lot I organization. room chips customer as full on make out as doing as of products, and say responsive That's terms customers it's needs. their understanding so the and really I And North customers, responding, teams work And that need -- the are America, team to a with our responding Asia working for arriving One, upfront Todd, with then blue how sales the operations commented in both program. then our deal and fulfill

to facilities still have of number operations production there. XX% consistent to That's have past all -- from have a I We in We agile do human group about last staff in better bring a North us and to but our also relatively percentage you and have still be So were think we to our opportunity environment, continue like team of labor. has revenue, critical quarters. even America this able them. in and for in quarter. responding, to labor America, a to highlight, I'd North our been resources to credit challenged

So helping we do labor. those to productivity definitely, in America also work But still have in results. we bring to drive improvements North here as

certainly would involved those that we demand again, customers impact in, more it semiconductor changes. there's exposed chipsets profile you, as a But on direct and aligning deliveries the an our done of the and that our good team business chain job as product a integrated has subassembly supply semiconductor Telephonics overwhelming and it have there, So in From highlight the are bring it's side. not on needed. do TTM, but even for chipsets of We meeting as we number things I with up just lining TTM, work do.

Mike Crawford

could then front. Tom. other Okay. then design on more of and on side you, but the involved you're activity earlier of design to get and automotive, doing your to comment question differentiation engineering outlook automotive that wins what Part customers? is, the about on with And defense similar the talk with some your one in Thank work just you broadly

Tom Edman

would was call, I automotive, specific Sure. interesting. Yes, so what to it's this

waiting have any situation a That's shifted, put in the because rate. as have bidding build been our plans. to markets out to their product of hesitant at packages, the clarify hypothesis think they're I customers probably own terms big bit my for

So little total XX wins million. about We down a value of were program about a $XX program design total We won bit. value. had

customers As $XXX that I again of I changes that year we planned, our were the about state million. just mentioned, product what to the is twice are -- standpoint, been balance pace absolutely out set opportunity hesitating put pretty engagement year. I expect the we in about they've increase to packages. of as From economy A an is to through of here the those ago, down certainly But dramatically go that right. with year-on-year. that, put

still the but of are is more side. the -- not finding growing customers more major in and identified of that and Xs the we from in for involvement has design shifts TTM, involvement One we significant automotive -- process. ago are OEMs that the most several years the And that OEM the the Tier

I'd that early. brought focus starts RF that standpoint to deepened in, and are first even vertically with they they those module in with engineering TTM also particularly the solutions allowed just Specialty use that Components from Group, with their coming vehicles, the with highlight, comes the that they integrate cases, finally, in companies that or case, and EV with the engagements OEMs. design involvement of engagement ADAS to in and on And often game, assembly OEMs engineering has an and now again most service, so Xs engineering they really sort our which The if and the and engagement required we engagements. have critical true and our directly RF when with both do the plan, been to an have has bring side highlight get it deepen that decide our RF and of in engineering Anaren, to to with I'd systems -- to becoming working right. Tier start to And the us customers want expertise

well EVs a with engagement is now growing our lot we're so companies And those and them. as of with

feel few a over how you shifted the gives hopefully, for So landscape last that here years. the has

Mike Crawford

Thank you very much. Excellent.

Tom Edman

Thank you.

Operator

from Company. Ricchiuti Next Jim Needham we'll of & hear

Jim Ricchiuti

margins I instance you recent Hi, is, thanks. you you back give haven't to that again wondering of an to any my might as I'm afternoon. where was your given higher. least much which in wanted Good to significantly called strength, And have the a guys I that at sense go that how don't business of quarters. kind us out, in lift quarter? recall quick-turn gross if that can question

Todd Schull

mean, that's it's significant essentially price Well, I lift. a a increase.

been so and more offset than upside. and there expected had consistent volume. that the in activity of than And and And QX, will, quarter mix expected. we level pretty it came pricing to mean, in ongoing little we premium we the normally has had in, our the a couple quarters look reversion revenue-related last quarter you activity have. But the gross came of had to some history. But so list we about labor witnessing of costs extra and the the you to bit an volume, incremental it increased And this of margin explanation And costs than if see and and gave complicated again, QX, more were more listed was in, premium We the drove QX all factored in a that material was on surprised over for the but expecting it and was improved in in that that and upside substantial. very and for been all significantly items, both we -- lift. pricing if our quarters was relatively what we really have us more think last we're the that few than

Jim Ricchiuti

if minor alluded kind to there's where And being wondering on quickly any for any you Obviously, Tom, below read all to start demand. I'm PCB of And book-to-bill the business Okay. you're signs seeing through change very weaken. some X? that we're some in may impacts indications looking of

just you I if on elaborate So was that? could wondering

Tom Edman

as more come still times reduce at which you reduce able so to the look hold But by book-to-bill, levels side customers the down, back they've related orders. lead fact Yes, And Jim, when down, come allows off to -- were that lead to sure. we on commercial Sure, plans. on our times to factor, that is we overall elevated coming times bookings the normalized in way. the is the the lead now if as they're biggest

things about really to started in That time commercial still if lead your we with making but lead as lead start stretching factor. this Again, what elevated, was lead and quick-turn single need case, did time the we time quick-turn was started Todd adjustments. adjustments. got work, the in those so premium normalize business, you've making to where talking inside demand more And times get biggest the

with and customers, highlight -- issues, particular would for semiconductor and where I computing are they there they were seeing Secondly, area semiconductor in the adjusting individual programs, area networking inventory. were

the of then actually factor. had -- And so sort we're secondary upcoming lower And a A&D thirdly, -- a quarter bookings is bookings adjustments shifted really inventory we into those on side, quarter. bookings for this

the But quarter. bookings in strong should those on the quarter we third bookings actually see a side. So also shifts contributed very

big the So factors. those are three

Jim Ricchiuti

Got quarter on Thanks. on and Congrats it. closing the Telephonics.

Tom Edman

Thank you, Jim.

Operator

we'll of Instructions] from Securities. hear Truist William [Operator Next Stein

William Stein

very results, margins. these the strong on congratulations especially Guys, Great.

can capacity gross you might have in hoping that's facility ramping influence talk impact? the a to going I'm if us margins production to a your of meaningful about India how First, bit little and

Tom Edman

Todd, Malaysia think, can that. I on you Yeah, facility. answer

Todd Schull

mean, really Right, this year. impact be negligible. I Yes, won't have Malaysia. any in it to it's going

on to have a start -- as Next year, begin bring bring and add on mid-year drag. will it on some and to infrastructure we leadership to employees, start costs bring

we what lot We insight to as But any we'd would steam I'd way in initial we ramping get 'XX. ramp of hit We would until during probably. 'XX at XXXX full to when all late normal And really be yet. the of those we probably be to won't 'XX. offered haven't rate we to we our get the that of have impact closer call 'XX. We'll a announcement. negative kind margins expect by haven't you early end some it 'XX, because updated we And expect run gave to from when numbers

because a normalized people build hit early train or before will certainly 'XX. bring you've on that kind be timeframe, little So product. expecting of you that got 'XX but the to up, and headwind late ramp we're can And a margins trail for margins will in bit them to that actually

William Stein

The follow up…

Todd Schull

ahead. Go

Tom Edman

Yes, ahead Will. go

William Stein

Please no. No, continue after.

Tom Edman

Yes, so just to highlight. no, wanted I

drive for that was we And product we the basis to that can and us customers the TTM sales mix and the the then facility the long-term -- into basis and that on provides of have in this the now that the the have lined fact side of had -- as facility. agreements. form side you really we start committed provides thinking about that One up revenue margin, customers assurance the

shorten we bring time, to going It's ramp facility. the have baseload to assurance. help to great on that's that the Will, So as

William Stein

I Great. But on business? for I'm not if to secondary probably CHIPS device is any The -- company, -- if a primary Act. potential well on there's influence follow-up I direct you're a the wonder business. there's aware that but semiconductor effect it your your wonder relates

Tom Edman

will been to terms test the semiconductor thrilled the this. Yes, direct right, to critical Will, thank impact float, and and We're a put funding. see are I IPC that we've We of of America We do the certainly you're mean, Association production. also portion supporting message. electronics not a Congress and very burn our part have a -- customers you. of in consistent larger of efforts we as a It don't and chips that chips these of been through help ecosystem. PCB it's been a reminding customers broader are That's supporter the that in-board us.

thrilled earmarked be $X.X was that some developments, sure, billion interesting I'm for to a microelectronics. demand directly, there. the to see also we're going So from really standpoint But

But own that, about microelectronics business. ecosystem. to We year out advanced broader then Syracuse, $XX have business million that's that a and packaging of microelectronics our than broader tied a

as with So the be advanced we some look customers. as more circuit customers here infrastructure our with we'll working potential of technologies printed board microelectronics certainly for both we at needs work infrastructure, and

certainly sure see associations make here the well think to So as as involved with remain it's good I investment America. in to excited It's But is see. to infrastructure good with the provided. the to North in that. consortia to going see We're that the support proper

William Stein

Thank Great. you.

Tom Edman

you. Thank

Operator

are further any additional for this to over at there closing turn the questions time. or back no Tom appears I'll comments. it call And

Tom Edman

points Great. close Thank just like summarizing of you. the I I'd made Thanks, to April. earlier. by some

the earnings high in end First, the this tailwinds we've guidance. many of past that of we quarter. year and seen delivered the turn revenues headwinds And fact above really past of the cost into

of market end our revenue diversification growth solid Second, year-on-year enabled really XX.X%.

differentiation acquisition important advancing in employees, strategy flow. strong Penang, the of customers took very support. fourth, generated closing, and for we our facility continued Telephonics much. the steps breaking In really in of our to our cash investors Thank and our your Third, And thank with of our we ground I'd Malaysia. you like new just

Operator

conference. That Thank conclude today's participation. for does your all you

may now disconnect. You

TTM (TTMI) 6 Aug 222022 Q2 Earnings call transcript