- Earnings call transcript Q3 2022

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Sameer Desai

Thanks for everyone's patience.

So we're going to start the call now. I've got Tom Edman with me and Todd Schull as well.

So let me just read the safe harbor statement before we get started.

So before we get started, I want to remind everyone that today's call state 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 more 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 risks the Please and in that affect TTM, registration Forms to reports XX-K, the S-X other Form other found be company's may statement disclosures regarding on X-K, XX-Q, SEC the which filings. the on may

such available will over considered Such should you posted TTM's of in will We GAAP will also go to a refer filed discuss www.ttm.com. as -- Executive posted release, accordance on which we a all We've the turn Tom. reconciliation call. this company's the press prepared ahead, adjusted measures with also not measures as Edman, and be call direct the for financial at measures the substitute measures website certain on the and the presented I during deck included in with to GAAP, that TTM's to slide to website we'll Please Tom now call on was Chief EBITDA. SEC non-GAAP non-GAAP Officer.

Thomas Edman

was call. or call. us did behalf appears and do inform and issues the the of and the Unfortunately, to Sameer, not company make set -- Thank you, this did these not that provider on the had for that well. we're let's up just of it with change calls service we want as the acquired sure apologize again recording I for

for the the questions we'll So to with end call. this. at the of here, we will bear best you to I do us apologies hope can my and respond

started. I'll conference review get our third you for with and let Good XXXX thank afternoon us to me third for business the So call. just a joining begin year with that, our fiscal from with all, highlights of quarter by of quarter our follow overview QX of quarter XXXX our results, and our Schull, our of performance CFO, QX discussion strategy. guidance. business summary an will Todd XXXX and a a our followed financial

supply We will delivered the are Slide In your highlights X The posted high also range the presentation our then and on of the with XXXX, quarter revenues guidance end open in COVID-XX that the of despite and investor business. call above to a quarter shown non-GAAP on quarter's TTM's of continued a labor with the TTM environment having on guided solid EPS is questions. line website. the third challenging chain impact and

full to the -- addition the QX of revenues X.X% Telephonics, want we do out margins and While first quarter of employees On I RMB year-on-year, Also exchange our the that include for broad-based as the saw solid Chinese by profit call favorable rates include from in against the higher better across further mix, premium year-on-year Telephonics basis, markets. first delivering a dollar. of all company the grow growth driven end our this pricing in product revenue. quarter. proud saw am the rest a and results results significant I of improvement foreign weakened the

business to cyclical I journey provide XX% see of on and diverse are update. almost to our will declines, less to into differentiated. margin to would like with challenges Telephonics, commercial which, of supply business, of end As a market business now transform supported and TTM the including be addition revenues. some A&D to strategic to represents our contributing our a now tied our and but is continue adjustments mix, our by inventory we our QX, look we customers revenue more

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

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

as China. diversification sourcing and supply facility in assist PCB resiliency will in this the direct networking on of in majority increasing be less of filings in about laid highly and of required is to the products will being build integrated engineered automated is our such new new decision PCBs facility customers TTM, manufacturing Adding in differentiation commercial the industrial steel of XX% our Telephonics electronic outside XX% regional response the computing concerns for framework. facility past great integration from a Malaysia contribution. options strategy another PCB particular, and the as began In X,XXX state-of-the-art, the raising and this overall center in The foundation Penang, to element and our the medical, and need building, strong customers' over of made for than construction instrumentation. factory the underway. We is quarter The multilayer addition, first Malaysia. demonstrated telecom, current a we new completed data and with markets, locations A&D chain advanced with quarter progress revenues the Malaysian well performance of their

to long-term deposits of multiple resiliency export also needs. We of view XX% business Chinese whom news base customers' diversifying reaffirms have our controls the signed provide a Recent which over in companies the for chain for capacity planned we new supply regionally received importance on from the our with agreements, customers of increasing building.

Finally, to few about a like environment. say macro I'd overall words the

economic and business. aware investor of potential mostly are concerns the commercial slowdown recession, understand We our and an which would impact

We global closely economic business. monitor will on continue to our commercial influences

focus seen have chain with while slowdown to customers We challenges. managing a of supply inventories, continue business some parts struggle booking commercial our in as others on

continues element business commercial to robust, Our expect strong the be countercyclical to and if we provide backlog and our weaken further. to market however, defense aerospace conditions

markets, to to on like are of X due aerospace the XX% market was year-on-year to I'd our website. majority third and The of sales referenced QX the Telephonics. end inclusion the presentation Page growth XX% of of investor XXXX of quarter on which represented XX% in compared The and end of Now sales QX sales total our review XXXX. defense

that our revenues Excluding grew X.X% impact, A&D year-on-year.

We continue to A&D $X.XX climate, Telephonics. experience our backlog including a defense with program billion, positive at

defense a program $XXX.X ongoing compared for our backlog Telephonics, strong Telephonics. result and million and demand to backlog in franchise programs. in market the positive is million record million and was of defense TTM year bookings core solid Excluding $XXX for $XXX alignment million, budgets of a strategic a including tailwind bookings $XXX.X The by solid was program ago. driven This key

key space radar and saw including During programs, the Spy major a we significant for X program the bookings program. quarter,

market compared We in industrial XX% sales total about up broad-based QX quarter and in performing market to the the sixth $XXX second total in medical and XXXX. segments. million XX% XX% a end quarter quarter expect were with Revenues from expected, year-on-year, our much represent XX% across than all end market in third sales. to exceeding sales contributed this XX% strength in quarter this for of from year The better our the of the ago row instrumentation of

of to to revenues select quarter, moderate represented we continues grew shortages. quarter quick XX% quarter million second of XX% compared fourth sales face the for exceeded year third a total as to MINI during the customers during year-over-year For Automotive and and the $XXX XX% expect and quarter in sales in XXXX revenues turn fourth the Automotive X.X% XX% ago the row. component of be quarter XXXX. of

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

to quarter XX% to quarter of sales XX% We from year-on-year Sales QX of XXXX. end contribute data XXXX in up center total automotive in of XX% center XX% this business to second growth the from Revenues market PCB XX% the customers. market end primarily of total expect represented compared our in the due in QX. our computing data sales third were in and

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

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

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

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

North to in was Asia in capacity QX PCB XX% XX% decline in added direct in the in Our was in XX% the year earlier rate lower rate lower and the a America volumes, in production to The was plating regions. ago by capacity shortages North year-over-year labor overall in year and QX. America Pacific while caused in quarter due compared utilization certain additional

not the was top million end XXXX. any compared in the our over $XXX.X not XX% in at including to quarter total which Telephonics, did sales have subject the the end $XXX.X backlog, $XXX.X of year, of in Telephonics quarter customers X at QX, XX-day of million XX% and the including XX% second Telephonics. is the to the of QX, quarter. cancellations, We XXXX customers million last end third of quarter compared to contributed including third Our At of

in and bookings customers. was ended for of in X lead including our to below was due customers our X.XX book-to-bill business innovation Telephonics, supply inventories ratio, as challenges. the commercial for a were The manage face book-to-bill do chain critical to continuing months Our times X. to October X I contribute inspiring TTM for and our mission reduced want employees our thank and to decline

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

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

Todd Schull

challenges. as your and Thanks, earnings quick to appreciate well today all is release X technical presentation that Slide the our on press a I'll our take of website. of I the shown our review distributed Great. with in which today are patience posted results for third quarter, also everybody, as of financial our

quarter my diluted XXXX. The in or year. share On $XXX.X compares of in markets. the of to quarter the of third organic million on to XXXX This third non-GAAP in quarter compares basis, remainder For financial million $XX primarily as of income was the quarter income GAAP per year-over-year GAAP were per compared third of will due each our quarter million comments net the the $XX.X GAAP Telephonics was million inclusion of focus XXXX in net $X.XX last was XXXX. performance. share. third of to or third increase of $XX.X This operating growth the for in net our the diluted quarter, income million a $XX.X million. third as well sales to in revenue of end $XXX.X The $X.XX

quarter third as such other Our was and M&A-related financial and to see with and in present enable Gross expense of compensation to or compares through stock management non-GAAP and performance information third to costs, items. costs, intangibles prior quarter expectations non-GAAP We investors the items excludes restructuring certain facilitate eyes of margin noncash unusual infrequent of comparisons addition third the product and mix, the XXXX. in due the periods. company the year-on-year to revenue XX.X% competitive. XX.X% amortization $XX.X Telephonics, million higher of more be year-on-year net in year premium The this X.X% of sales in marketing North quarter $XX.X and as expense costs, to wages or was a higher America to earlier better versus was the pricing or Selling X.X% we labor of partially and increase million sales net year and ago. by offset particularly

Telephonics. and of million revenues million Third quarter ago or of G&A, due $X.X of revenues to was quarter of added million In the X.X% $X.X last or net of sales G&A inclusion same expense sales to million was net Telephonics the X.X% or $X the million third respectively. in increase $XX X.X% R&D X% $XX.X was of compared marketing to million $X million quarter, quarter. the to addition sales The and year in or of year. and the compared $X

challenges QX in outstanding Interest an last in was same million million compared facing. in we've same XX.X%, $XX.X macro quarter been to quarter to margin operating expense last the year. $XX.X year. in result the This the third the compares given Our was X.X% quarter

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

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

XXXX revenue. quarter flow third from $XX or XX.X% of compares million million was for of the compared good of XX%. million were was very target cash $XX.X capital quarter share. and or million million. of adjusted the X.X. or million. our a spending for income diluted of at divided share. Depreciation $XXX.X quarter revenue. revenue net quarter target quarter end $XX.X $X.XX or $XX.X $XX the third This or Free very was of was XXXX by $XXX.X operations $XX.X to equivalents with net per third income third net quarter diluted months XX of last Third was or our Adjusted Cash EBITDA XX.X% and at X.Xx, of Cash EBITDA of Net the strong cash the in million flow XX.X% our EBITDA exceeding debt million per quarter revenue, of below $XX.X XXXX million, was X% was $X.XX also

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

for we fourth $XXX $X.XX be non-GAAP to We diluted of quarter to the expect range the per the in in to revenue total expect to XXXX range million of $XXX of $X.XX and be million, share. earnings

Tom customers our mentioned to due end decline in markets. concerns we expect macroeconomic revenues in earlier, As commercial by sequential

inventory are supply customers facing are chain challenges. managing Some commercial carefully and levels others

million diluted revenues. expect revenues a XXX which shares, is We such in decline as approximately lower dilutive due sequential RSUs. options premium forecast to less on includes and The based a margins and count EPS securities of share

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

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

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

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

questions. the opportunity prepared on now on Leverage in Baird like America and XX. X an participating be the Sameer? November Bank for November our and of we'll that announce we'd to to concludes Conference like remarks, I'd Finally, Industrial give That Conference Finance

Sameer Desai

Sameer Thanks, from Yes. is TTM. This Todd.

me, [Operator or So to Instructions] call ask and Tom Stein. you please Will first if on will I question. So questions for have your Todd, question, e-mail you and text any

William Stein

hear Can you me?

Sameer Desai

hear can you we Yes, well.

William Stein

it of figured A I couple Great. questions. out.

demand? than the premium you times it? sort a First, softening relates be sort Is call. less of the normal may quick of described describe revenue couple to lead customers important to the suspect that time product that that of way in to given I less right today turn

Thomas Edman

Yes, Will. that's correct,

quick historically, customers generally give within in And very was most recent elevated, times, -- ran at if is -- lot a the and perspective, this which of quarter, we and X% work QX, our XX%. recent most -- been you if to of premium. you And be revenue. it's product concentrated new about about It's about some need of thought then introduction, so to revenue turn well that's XX%. would within that where we're -- product were that lead late. included And closer so a in that's And think we premium

is that below in below elevated. still slightly the historical expecting down actually come to average. we're fourth quarter -- So What

back come pendulum premium the terms requirements. seeing in really So of

William Stein

it. Got constraint. you year, in years wages. sort secure where wage talked about supply a of in inflation. was labor. follow-up, an This earlier like to a ask This the been then about And has And I'd as enough past issue couldn't you raising

a decided say America. was there on constrained continue made should to North be and comp? to think revenue I you by that about to I continue heard limit Is growth? to globally. labor wages we the potential you I analysis But think should raise wage another global something Or you you expect increase think we it in

Thomas Edman

Yes. Thank you, Yes. Will.

compensation We where we early make really did in a big February behind recollection. that a North frame, very We also in So have our saw the a we that to difficult we the time market, and you're were -- very in in in adjustment be we we North approximately structures needed year for labor America. America. fallen good -- in recognize

leveling -- our of organization. part a was this so entire And we of

on compensation huge into global a years So a global on a really framework, of project a project that embarked prior. to our several that that titling, we've our we global all did leveling was get --

in make phase America. part the that to adjustment was As this last North really of project,

pleased result that in we course, a of review of I'm did and result compensation really the to and is our number operate, related ongoing operate been changes, recruiting we global a of the North labor referring But face. had review. to that's in what we the regions also and the ongoing purposes, of we It's some bit retention -- in to ongoing chosen really as of company that -- we're we're say that of to labor have a for rates as an frankly, in. So midyear, to for do is challenge with a normal is a an -- direct come that, coupled here we've to found just as and well. down give to PTO in and jurisdictions has specifically improved. turnover COVID -- particularly in as which America challenge now that that COVID. we've And absenteeism extra a required

away. are North I with really America. the goes. economy the to that we to challenged would continue And where think on depends X those that direct the I issues do that be in challenges love going labor say So

very are that for defense need and continuing certainly in in America. foreseeable our our -- in for forward a future to a business need here going employees labor America -- North We of secure we're North TTM strong base strong for will see and we for with seeing direct such employees build on the

Next question?

Sameer Desai

Yes. Thanks.

ask. Mike question, So and Crawford, ahead go next you can

Todd Schull

quarter strong QX. for good be You're still you as reverse credit Mike. that. going to give have Yes, as just or good current we're won't They margins. at our engineering, I'll

good will We have performance. a still

margins up you reverse gross you're with than going if probably greater XX%. math, come do So to the yes,

Michael Crawford

of then I the if what capacity represent you XX% facility. of for perhaps regarding have heard And would commitments Malaysia right that already

and to where you track of behind that on -- that hope that And general? level and in that what what running? you're to you at kind or do capacity are schedule be facility steel or the up of So get you with at raising foundation do that say operating

Thomas Edman

Sure. Thanks, Yes. Mike.

of about capacity So what of you're our That would capacity. planned correct, to XX% million capacity in will for be be terms revenue. planned $XXX

a slightly at little an approximate production But standpoint, XX% over given moment, what long-term that's bit you. about on And move to with the the depending pricing that volume course, agreement. committed already from mix number the Of will product a around for is. a

So work of the by that's terms customer we in to where We're sit continuing the way. that, side.

have some to discussions. continue We very fruitful

And upwards. so will hopefully, that move percentage

very they construction many planning put construction that's of so The point. went steel in and place on, in this terms frame And on has our is progress, but Early a for at site like a a more terms dealing Malaysia, in expensive, this planning. the less much of that shortages. we've schedule in I building, involves labor we're little with it of In from benefits the countries done of terms operations really with think one bit labor standpoint. team

are... is and So simple schedule we've certainly going that relatively the fact construction to help to us, and remain to we efficient date, got framework a hope on we

Sameer Desai

Jim Needham. Ricchiuti next question, So from

James Ricchiuti

Tom, down I'm the the the Wonderful. markets. elaborate in of some what And seeing in about the you just thus wondering some not you're I drill the seeing over how which verticals? course commercial softening out of And into could comments quarter? far surprisingly, on of wanted And that, QX? did are to your that play of if you

Thomas Edman

Okay. here. give Yes, -- a a you ranking me Jim. let of Sure, bit I'll

so we're And of I'll the a call of softening what I areas seeing. that and sort with start would --

which half semiconductor we roughly equipment if bit are of capital MII, the business, the softness in piece the the of eye second instrumentation than less is MII, which side seeing If -- instrumentation so you a instrumentation, -- little our of there.

little customers -- back that of and situation burn-in computing, aerospace relatively area, alive for we are to XG story bit test -- jet in some countries there. to India, us work seeing referring then see control, we should weak. as improve. weak, right relative burn-in restart continues and seen the and be that there an which but have softness, is to commercial in customers in area but traffic That's We we've inventory through to builds seen is And inventory, come down. Telecom, are we're passenger semiconductor. an as are we that, seem other build-outs until indicator well see of now slowed softness we've softness also that believing a softness we as ongoing see board

list, watch are supply where areas certainly -- meaning are demand looking management referring short-term inventory pointing they customers strength, center just watch the improve. their and I'll say, customers both I supply controls data would chain gradually controls, to still and at On they to as inventory networking, see chain but put situation

I So those medical, areas to in work, little of medical inventory well. which certainly on indicator, a is bit I more as of control going premium referred think, an less in that area

middling we're areas, areas So our well. of continuing doing strong. defense, big solid that's us, sort Industrial, strength. course, then, a continues of in very area. from still demand robotics, solid to involved automotive see And then customers. be to And where we're industrial very Automotive downhole for still

businesses. mix there a of So

the you softening. watching that, I to are listen the closely. be we're can with see that to on markets are areas good think balance, And you if continuing that areas of those

James Ricchiuti

and the and intact? that think Or a telematics, I talked follow-up if earnings. know. may line respect about order squeeze that with are something early in time days, $X.XX they the I the that don't know quarter I had to talked you've -- I could is it's the synergies case about, still was I on If it. whether in have just you it. Got contributing missed of Todd, it

Todd Schull

I'll answer up. and follow latter then the first

good making of synergies, we synergies on announced indicated, specific very million in we about we our by We're run achieve of to rate take. track And that. weeds So in $XX as to plan the into feeling regards and as what we're progress really are to deliver the end get that when the good are about we and actions -- being Tom start talked integration, process acquisition, XXXX. to in we the of

that's with consistent nicely expectations. our earlier and So moving

is In million. terms for quarter quarter, mind of the was Telephonics year-end. close. as the revenue you're The keep the And $XX the their fiscal traditionally quarter that to Telephonics about quarter contribution calendar be used in peak that for to pretty QX

performance date. towards in drive programs good. Profit came their all so pretty that end And

a more noted, you $X.XX than we we indication, were contribution. of some expecting As bit got we give Maybe that. about little

neighborhood. was but was it it favorable, So maybe slightly in $X.XX, that

a So the on upside they surprised bit there.

a year. things off are be their that's coming good expecting a for lighter fiscal to peak in calendar their QX but first traditionally we quarter, as traditional So little

Sameer Desai

Yes.

next So get... you line a Tyler from have might done question, hear we Craig-Hallum. you, If can't year

Tyler Burmeister

may You now...

Sameer Desai

I hear you, Yes, can Tyler.

Tyler Burmeister

quick. X a ask Great. Awesome. question here or

guess inventory I to of I out a these wanted there? way challenges and in adjustments in quarter off your of fair these I to are one type want anything into of along seem head there we the it as call corrections not weakness about commercial up and to would of would you nature. that It into that or these seeing. market go the just use to them with think that persist next Is some fair half just first year next you're headwinds into follow be some on thoughts year? next year, to So that expect And looking

Thomas Edman

Yes. Thanks, Tyler.

-- characterized the think it you I well.

and say bumping to would those the the we'll strength year. So as expect back for should inventories through same that real XG commercial we start customers the turn come of into bottom aerospace see work as I if there. that we there. you here go should -- to demand build-outs I list should softer along of telecom. back been come as continue. the still are We've I go areas through We course talked next through tailwind about Generally, see a going

still as areas that jury center just areas those weaker I'd the really semiconductor data side, and be think And out is semiconductor being Certainly, I out. could networking. point year. equipment are next the capital So the other and think then X areas, I

their that that work them, really supply matter a Our strong it's customers issues. that they through are to chain just indicating and for need programs are

inventory, as mean, more indicators area expect really And temporary I So well. anything from that's there, they're at than but to the then I else. through believe come certainly good back working a medical customers. least do that of issue

may serving times So cycle. in a having soften it's some wonderful diverse that markets also set defense a we're a areas to very have end particularly on these works business that when here, again, strong of different that But on balance, bit. certainly

I So going right we now where like sit into XXXX.

Tyler Burmeister

And one, quick one Todd, sounds can, I That great. probably. then for if more

On specifically margins, probably, margin what just baseline year? that you we of we called get like of of again, absent the headwinds either to we your margins in as or out into look kind gross might some us level, might could you margin this gross these the gross what at maybe a guide, go a give kind attribute QX next can impact normalized so

Todd Schull

I and Are sure question. expectations? asking about QX understand you quite the not I'm guidance

Tyler Burmeister

The You think QX and be due headwinds talked were guidance of these about. same and say of macro of to we going some I talk... at kind the you some to concerns markets down margins

a front guess it with I I there, anything out to guess, volume is markets on down else is the call that should thing manage those So being just we be.

Todd Schull

comment we the fairly the but it's really think I made straightforward. script in Well,

But margins, We the at And to some for gross in have look overall, say, as commercial tend revenue really our us some has if of you you QX. compared same commented Tom explanation volume. in And to but margins it's I look margins. on. QX we can operating markets, more -- at hurts would decline coming that from those and

X in revenue. gave, you're operating If is engineering the further we a And of around things. XX.X%. margin, is One, the that one the driven that's of guidance down X% decline from decline premium EPS volume to get you somewhere by and a and really terms do that the reverse other in number going

the But that that better call expecting So of its it the helped that really some about and Tom in were still third that's guidance, from talked in than so And on It was premium pretty was earlier declining been peaks. good. quarter is reflection revenue a definitely upside. we our talking about. we've our the in softening

you lower So when look margin revenue premium guidance QX, split in impact at for our decline reason expected. really is for volume the less the and the in XX-XX

Sameer Desai

Thanks.

from So question is next Sheerin Matt Stifel.

Matthew Sheerin

in and all stay providing guys you appreciate I details. these

just down I automotive Just drill the one to outlook. question. wanted on

visibility and as in rebound you into You're a down the in are you growth next next with expecting December, customers. sequential and your look at issues I year-over-year trending year? growth still backlog year, your a nice even at But kind of understand

Thomas Edman

for your rebuilding the the quarter, appreciate be very so very, down year I rebound really we remind inventory maintaining the midst of position. and you in -- if sequentially a building us, Yes, quarter we'll you, solid just patience And at strong were fourth when we're customers look was last -- position. year-on-year, Matt. in Thanks, automotive in really I'll fourth

So strong. QX was year last particularly

I last is going let's at to looking say, just macro to, from trends we has of an So course, standpoint going by on go and be at to That balance, are electronics year, content. crystal trend are automotive into lean ball. one, as encouraged $XXX about where the upwards everyone PCB through at moving to continue I'm from it of content we $XXX we're for What the year think to forecasters number per is, end the encouraging. was $XXX next PCB overall their content look by the And vehicle calling XXXX.

we focus I think as on on right we're as in we the ADAS support. ED build-out focus areas

team good has terms done program Our placement. in job really of a

by So that. I'm encouraged

positioning TTM our will that help certainly think and the marketplace. in overall I

economics, Japan. the in the robust, some catches really quarter, As think think to in far of continued demand those in still automotive if America, volumes and last go, some North a Europe in particularly makes chain I the was we I we challenges as supply be it with now, PCB again, are economies, when going weakness this the sense. shortages. customers to where both predict. hard And our Right at you dealing case Asia, China of of saw to see and up. unit And that's Over look

up a point into be across production really at automotive go of at does demand. geographies we'll point, real to going I XXXX, then it's case what think we catch demand as with what is. So see that our And

happens part say, I so that be, think happen. catches see in again going we're to year, the And can't And in up. when will what I automotive. would when the predict the in supply certainly really solid position just I And first we're of we'll a

automotive, up. while question -- the So we're and just usually talking comes

at that's me year value $XXX of automotive let automotive and off in as We we program last designs, comparable XX where million a this the quarter pretty So new of program won quarter this address were to in wins about time. well.

So customers for to see designs. positive releasing new packages again

to strong particularly for on a build story encouraging, industry. packages start So EV as the that's those

Sameer Desai

your So we you questions this this hear get point. you line. and at X, need I would chance to star more we to any to have I if is queue Sameer. so -- can't last they if don't believe the in everyone our give any ask like questions

doesn't Okay. more have like we It any questions. look

for remarks. So Tom concluding hand back it any I'll to

Thomas Edman

me Thank and you, relations investor today. thanking very out vendor operator acting challenging Sameer. and let a by situation And with as dealing Sameer, start

you this that and for such Sameer, patience And to of your you, call get thank for your short to on like again, So on job. notice. incredible thank all I'd willingness also,

Let the points I by me just summarizing earlier. close made

the in end with TTM First, earnings above guidance. revenues delivered high line and guidance of

growth That's end X.X% of strong including not Second, our Telephonics. diversification enabled market year-on-year. revenue

net generated down here of way we flow, whatever defense leverage with comes revenues. XX% at markets and Third, well business of aerospace commercial in our to terms strong fourth, positioned now a we're cash we're an And and of for X.Xx. the

I support. So you the And like much. course, for our investors, of your our support your Thank of our have and in and closing, hope very good customers. day. would ongoing to I employees you, a you rest just thank

TTM (TTMI) 6 Nov 222022 Q3 Earnings call transcript