TTMI - Earnings call transcript Q2 2024

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Operator

Good afternoon. Thank you for standing by. Welcome to the TTM Technologies, Inc.

Second Quarter 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded today, July 31, 2024. Sameer Desai, TTM's Vice President of Corporate Development and Investor Relations, will now review TTM's disclosure statement.

Sameer Desai

you. Thank

could based represent started, forward-looking we to to which review. to one you currently statements, law. management's does business our expectations TTM encourage Actual the or get today's assumptions revise publicly any everyone obligation TTM's statements with Commission, or Exchange of would these filings statements, that outlook. contains These not and from we by uncertainties, of call including result results risk other more these future I risks we to a new on due or any events and information. including remind like except available circumstances, that future forward-looking and forward-looking Before statements materially required the to forward-looking factors undertake differ Securities as information, statements whether update in as related provide

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

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

Thomas Edman

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

of results the to markets, instrumentation, computing aerospace medical, AI. program generative sequential the a end which and markets, by though for billion. I latter and provide we declines our year-over-year be our cyclical networking and TTM like and the less on X.XX. revenues the more is X.XX, quarter, now of was was a backlog now journey A&D of would book-to-bill book-to-bill of business company and second XX% to would being driven with did of year-on-year to will Slide second growth and higher are delivered strength your strong the Revenues the and for support were then due due I posted employees guided year-on-year per on these TTM's financial website. our range quarter's and work improved We XXXX, of questions. Highlights aerospace X defense and share data quarter non-GAAP the hard guided solid range, summarized results. In were growth like the demand to operating We the of center revenues demonstrated thank to update. approximately partially transform offset in consecutive earnings $X.XX above be at The execution. to call on earnings record a to the and from our strategic above their automotive in improvements. Overall, and contributions end from quarter have open defense a strong, presentation quarter, representing revenues the market, differentiated. by these Demand markets in growth see was industrial our continues to

particularly our part has and is several we product a the consistently our defense demonstrated in market. key to of to add to customers, past solutions the deliver aerospace the TTM years, that Over that strategy value

PCBs our Telephonics, acquisitions revenues now integrated engineered XX% XX% As contributing a generated defense of over of and products, Anaren strategic end overall. result aerospace from with electronic defense market and the of in aerospace are and less the transactions and than in through

strategy facility differentiation in service Malaysia end and highly-automated our a This customers of networking, our and manufacturing is as new new to in is commercial element PCB markets. Penang, industrial in in instrumentation. markets medical, important state-of-the-art our computing, center Malaysia, supporting facility investment Another in data such customers

production make We qualifications. cases, audits expected, we manage longer taking to qualifications and progress as continue ramping through customer progress. than making volume are customer several ongoing originally we though are In steady

the We our you limited manufacturing expect facilities We to to we in register on close plan to our update total X also and to the utilization, customer focus Malaysia continue footprint. our operational as performance, facility consolidation our profitability. plant like previously in revenues announced third ramp. I'd production of small order improve quarter manufacturing

XXXX, Hong and remaining and During in PCB of the operations Anaheim Kong and were consolidated closed facilities. California, manufacturing course TTM's Santa Clara, into

Anaheim sold the buildings and During for the we Clara, in owned to quarter, the ramp parts we continue and small production transferred we facility one of second at facilities. the receiving Santa

providing in York PCB ultra-high the update on the intent lead on technology capacity specialized customers of domestic like campus. the New production, facility construction market for of Syracuse, focus would you facility adjacent times for reduced to PCBs. to aerospace immediately I HDI a defense in requirements PCBs and high-technology and to national This advanced Finally, existing of capability will a previous new expand our our through announcement with increasing for high-technology our support new security significant increase

low-rate production ground expect months. initial building to within have broken XX XX for We and the new

be expect including Final investment investment commitments million. range we terms million of project, for $XXX $XXX for be to announced, improvements, between will capital previously Phase various X finalizing determined of capital stakeholders. to As in proposed campus-wide the after the with the

had to markets, on presentation our defense our quarter end with aerospace website. total strong and positive market The is strategic demand at program the end result record the earnings a compared to Israel, of referenced backlog including programs. We the defense and QX defense to end on of of ratio of market budgets, a of of and of for tailwind XXXX. like bookings represented second bookings a billion The in quarter previous book-to-bill XX% XX% key a to Ukraine the funding conflicts alignment sales QX strong sales related quarter. are approximately in which sales I'd X.XX, Page program a of second Now, $X.XX solid leading and ongoing in franchise A&D our supplemental XXXX X in review XX%

quarter, we bookings saw G/ATOR, a During for TPS-XX the significant program. MH-XXR and restricted key

of compared reach in sales first sales data ship XX% this and XXXX center This AI market from about better applications. total second of end visibility market for market XX% and provide We QX a end XXXX. total and expect to in computing time in high performed and revenue XX% aerospace into our the in in of expected end all-time longer of good than from to sales. growth. Sales in future in due our generative defense XX% commercial the year-on-year the QX to than an Bookings center to XX% markets products over period strength quarter, our represented of data customers, growth saw quarter the building market represent

of We year-over-year to the quarter and industrial to expect ongoing contributed industrial, first demand XX% area. represent of sales. The XXXX. particularly quarter this compared in The decline in the XX% and total second in medical, quarter third instrumentation quarter, of result XX% lower year-ago sales inventory the XX% market in generally end revenues the our was normalization, in of end market the

sequentially. market industrial improve did the However,

pockets generative our testing stable, In remained medical market, automated and of as saw DRAM customers addition, test the growth increased drove improved demand from semiconductor leading purchases we the equipment. AI to of market in

of represented the primarily be For XX% adjustments of several XX% continued and year-over-year market end the XX% soft total quarter, quarter of sales second XXXX. to quarter quarter in due medical, inventory to year-ago decline to and expect third revenues. Automotive during XX% XXXX, the demand first we at customers. was of automotive sales the the industrial, during instrumentation The for compared

However, ADAS for we to experienced QX growth demand applications. improved engine and sequential internal normalization solid and combustion tied inventory in

demand We XX% We the QX. Networking X% certain of expect QX, this to experience contribute quarter XXXX. on of revenue during XXXX to of second the of revenues. sales of first digestion in quarter market X% automotive growth networking On in softer, to X% basis, to expect end sequential recovering inventory market end XXXX. demand In year-on-year due our saw to compares focus X% customers. of be quarter in was weak of total the for from This as second continue we and customers accounted demand. revenue a and business

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

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

center new in will in that continuing to programs design year-ago compared advanced capacity pursue strong was to technology and continues QX. markets. PCB and rates business quarter XX% as markets customer the XX% new in in activities data commercial are products increase to Asia-Pacific opportunities Utilization and engineered demand capabilities We and rebound. other started leverage to QX, our and be utilization in new XX% improved engagement

year-ago North QX. compared was QX, XX% XX% and capacity America Our PCB in utilization XX% in in quarter overall to the in

high-mix, America as tend calculating in reminder, a in process rates. we the is are low-volume for North utilization As areas of utilization occur meaningful to facilities core outside Asia-Pacific which figures plating, that because bottlenecks as these use not

customer the end $XXX.X end at XX% QX and is end second as $XXX.X from to mentioned of XXXX, customers XXXX. QX quarter sales earlier, the the year. At billion the second backlog, of had record of XX% was to XX-day quarter the our defense at million of quarter. $X.XX And one Our of the quarter compared year. top cancellations, of of $X.XX sales total over million QX, last year billion subject a with to our in second increased XX% backlog of total at X We this contributed our the I of to in last compared in the end which aerospace

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

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

Daniel Boehle

I presentation website. and on the everyone. distributed included are summarized afternoon, on our good our financial will press and earnings X the today Tom, the second Thanks, for of that release were results in Slide quarter posted review

basis, quarter computing For were increase to compared net sales in The data year-over-year the as by for was center $XXX.X the markets, offset automotive, defense million to per the of income on second GAAP million of focus in million will $XX.X of of aerospace last our networking compares and second operating $X.X non-GAAP declines for XXXX was the $X.XX $XX.X in $XXX.X and markets. GAAP $X.XX the of of quarter XXXX. XXXX. On XXXX second to share. end or second quarter in diluted growth $XX instrumentation, GAAP performance. second GAAP second our due per my quarter, year. The income million, the or compared comments diluted financial was of income net quarter share industrial partially million, This our with a net income million, and in operating and end of medical, quarter remainder

versus X.X% in the end costs, $XX expense in to compares of performance in operational volume, see of prior of non-GAAP XXXX. restructuring investors stock on impairment non-cash center financial amortization sales the of non-GAAP marketing higher ago. or items. second XX.X% to was million the of as execution. Selling year facilitate net the other and periods. Gross and information M&A-related usual sales infrequent intangibles, in computing company quarter of second items through present quarter second such of improved XX% Our a management and compensation, increase and or market, was certain in X.X% was the year-on-year excludes net sale the million gains comparisons due goodwill costs, particularly The expectations or We quarter to and to the to margin expense property, enable eyes $XX.X and sales with data

quarter the research expense G&A year $X.X compared in $XX.X million net of the sales, same quarter and was of with second or or X.X% X.X% in In compared $XX.X year. to same XXXX, or was ago. quarter $X.X development Second sales quarter million of million or net X.X% the last net million sales, X.X% sales net a of of

year. of in X.X% to margin basis quarter of operating in second quarter same XX quarter was $XX.X Our XXXX, last last $XX.X the or was points million increase million year. the XXXX the same Interest expense in the of from in second X%, quarter compared

current $X.X million or income net million $X.X and Government the there gain EPS. quarter, gain million a foreign a a last in interest line. resulted positive or impact exchange was the the below income During $X.X positive same impact to positive operating totaling This incentives year million net to year. quarter $X.X $X.XX compares of EPS in $X.XX of a a on impact

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

and Second of compares $XX.X or to quarter or diluted net share. was $X.XX compared $X.XX was XXXX quarter cash million second $XX.X equivalents $XX.X sales. Depreciation million, EBITDA reflecting of $XX.X million with EBITDA of million. per XXXX average second sales, X.XX operations second totaled million million XXXX. Cash XXXX diluted the purchased quarter vacated Clara was quarter at the of closure of an spending million $XXX.X facilities buildings quarter cash sale $XX per of per net and or second our was share. net adjusted X the million million. $XX.XX XXXX quarter for of capital of second end stock of the was in We common of Adjusted XXXX net Santa the Cash XX% inflows for quarter at flow income $XX of the price Anaheim million. from the million income or This for share. $XX.X XXXX shares of quarter in $XX.X by from of for XX.X% the Net $XX.X

Our below low X.Xx, targeted was the debt divided to months' range Xx. last our X.Xx of of EBITDA net XX by end

anticipate million XX rate interest proceeds facility We the points May Finally, new such maintain $XXX.X the loans loan X, that an SOFR outstanding XXXX. X.XX%, close closing, using basis maturity tomorrow, a than issued B the loan at plus term new the of $XXX.X August new of we will XXXX. our we refinancing lower Term par in May issued previous same will loans Term facility indebtedness. at of refinance from anticipate B to term and of of Upon million the be

$X.X expected up other EPS stock pay on range of $XXX in cash the share, includes of be with savings shares, quarter per refinancing to I and the approximately is million, sales to on $X.XX million range used operating stock fees is interest annual diluted activity. which to of to dilutive new will and associated project We is million expenses count third share financing the the the to third now, inclusive XXX options generate for the based starting of have our quarter. million. And finalized, approximately We Once related XXXX $X for net turn in hand guidance of our $XXX costs of earnings to be a diluted of effect outstanding which Penang of The to forecast $X.XX the approximately non-GAAP million facility. and awards. to

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

the We million intangibles expect we $X.X and XX% interest effective million, $X.X estimate expense $XX.X million, IT approximately $X.X Conference, and Chicago income August of our to Needham to Technology between Communications concludes Industrials New amortization through in expense of be compensation be approximately Jefferies the of approximately of rate in Semiconductor prepared participating non-cash XX; tax We of expect Hardware that million. And on million, Industrial in Conference approximately and I'd and September Virtual interest XX; record XX of to of announce our on XX%. Further, Jefferies approximately finally, $XX.X interest August approximately remarks. will like we and Conference depreciation $X.X stock-based the X. That million. expense York Technology

to like open we'd the Operator? questions. line for Now,

Operator

line the of Jim will Needham Instructions] from And & come first our question with Co. [Operator Ricchiuti

James Ricchiuti

of commentary drove much around could it from on utilization meaningfully, was a I the offset hoping bit you wanted little I And go Penang. which elaborate could or the contributor what extent on least back more improvement there? headwinds Maybe from -- to to that, you're seeing give to the the to fairly at was that increased how just the color yes, QX. what APAC, some if in the it margin you

Thomas Edman

Jim. Sure,

You're absolutely right.

improvement, the facility. automotive, our versus We last it outside in If -- Most was rates operating margin look growth we up. you bit other data board the quarter. a were our were was quarter, really this really the markets, the much in of last low climb so but and at contributed most utilization. networking, comments? Dan, any Penang. But the of saw the relatively pretty sequential center to utilization whereas driving that particularly across way end facilities and sequential facilities And had MII helped commercial utilization further on Certainly, our -- positive a what

Daniel Boehle

with agree with Yes, those headwind XXX last operating this profit to basis comments. was consistent still the quarter. quarter, Penang about points

had offsetting nice business which what the that And But it's able be that, point, Tom's that. to to we yes, So, continue offset we'll is other just have utilization to did that to have expected. headwind.

James Ricchiuti

I question. have but you computing A&D to and beyond know ask about of the guide data areas of typically and business quarter, line think guys the a I wanted follow-up the that's sight, you I where X center And the don't the a business business.

about in you that think much that continued you QX, As reason center, is how in sector? there those concentration customer And there on is there data areas? wouldn't any see strength

Thomas Edman

The side, have a where backlog standpoint. the from booking of said, and is a kind best indicator number Jim, A&D good as the of support program Sure. out you we that's that visibility, there

shift into at so, programs, defense and have, that second that's the around. good yes, working usually X-month Data that, year, markets, we're we quarter. we purchase the auto, to the certainly comes within it is QX forecast and visibility programs right? program from, our into of orders I'd comes are go a placed get visibility, center given after that we in of least backlog. When do out computing the we We terms have most but where strength strong really and by a -- next program supplemented in certainly have say, little So less we confidence commercial as book

if certainly generative the is base our at customer QX, look for from we expectations. as that year. balance positive momentum in what think of we so, market, is a the I into strong their indicator you AI, that look And the behind hear Certainly, around

we course markets, of QX So -- the year. to optimistic this in remain the the would expected through back in happened the on bit other to end half uptick into terms expected. the That heading occur just I hasn't MII, of of year. I think an to a more we certainly -- extent comment networking of

be see. indicator inventory So at least QX, That's real seeing positive there. that have the Certainly, improved. demand we'll we'll situations a

that's So in markets. what seeing we're out there the

James Ricchiuti

just it data customer changed? in concentration center, has Tom,

Thomas Edman

for reminder that. customer and -- the does you overall, Thank Yes, on high. remains fairly the center Yes. concentration AI data in

You really driving have that that the are folks hyperscalers and direct chip demand.

it's relatively market, concentrated a So remains so.

have We X, have of demand terms customers, better the you driving there seen X but still a major spread do there. customers in

Operator

And one line that our for Sheerin with will of moment and next Stifel. from the come Matt question,

Matthew Sheerin

question gross A margin. regarding

had sounds up and sequential margin the saying, still of ramping you're is taking You've margin. in a you're might I And looks a point of like it said into row backing -- But longer. a another because think QX, quarter. that be to that of bit bit you -- qualifications in I the quarters production it improvement. gross basis headwind is headwind XXX one that the to pushed little was know going have out And X for are a like it Penang,

trying to fully how ramp next starts should So this figure year, into to once ramped. out or and about it's we think gross margins I'm heading QX just

Thomas Edman

is this So, Tom.

talk Penang the on about margin. over then the Dan to gross I'll and status, Let me to start hand

In Penang, there. on are there terms a steadily -- ramp facility to few ramp. continues things yes, of going The

And the of we terms in quarter. revenue happened the see thought breakeven to come We're a a there. a We right, -- and in to would We seeing is of that in in year. to is happening next QX point. X-quarter of that about our delay get that's going third probably will there early what that, couple delay, breakeven are have terms you're things. What's delay

-- that's And greenfield taking layer high that's audits not customer too of the are count facility. dealing expected, just customers' an greenfield for seeing particularly a They're sort production. than customers facilities -- Our familiar anchor with outcome audits. now of a longer

bit so, there. And have audit a requirements shifted

one that's piece. So

and intersection The other sample sample qualification related program then is ramp. to qualification with

to tricky get right. always timing So, that

And so, customers to that we're our with working synchronize timing.

So Good there though, facility terms what's of margin? progress, in on and in Penang. really preparation steady gross overall going ramp. Dan, that's the

Daniel Boehle

Yes. Thanks, Tom.

from it's level, this headwind the Penang, mentioned margin period. profit currently in basis You the about at gross XXX points

as we revenue, in the some at forward, do headwind been as start business, now or quarter, it discussed some utilization right throughout side margin still at staying on utilization level Jim's about Asia-Pacific improvements have at QX. North decrease as the in least margin as we're the basis next will well. do the XXX at And in points gross to the very in quarter. third Going factories we question, commercial that's, seeing America well increased to that we yes, of on good gross sequential see so rates But running

the it's Tom way in As volume, -- mentioned because is or mix. we measure utilization that it his not as in higher remarks, Asia-Pacific prepared is America as a meaningful lower in North lower mix

in well factories quite and doing rates. are we efficiency as far as utilization our North However, America

more than that's right the Penang offsetting So now. headwind

Matthew Sheerin

it. Got

Okay. X visibility All another I customers. beyond they I of have have tough. multiple some the space question know of that terms it's about EMS but know months And on visibility, there, of then, And the players center. in in that, data One, right. say you

we've volume you So strong are just and could if there I'd with And handful talk we're landscape? get be then quarters customers. some the I had because period to of know players entering digestion to big point. abilities do PCBs of take a for there to sort several the love second, competitive about going your global a at

environment. competitive maybe if more on wondering Just little can a us color bit that you give

Thomas Edman

Sure.

now the XX% that seeing right is But is XX%. we're by or driven seeing have center semiconductor been data AI, you about of center, know, data talk so what and center data historically now, as -- demand, generative what and it really right demand we has about demand, now, upwards we demand. data when of So, computing, which is yes, right on we're center

really seeing there generative momentum side. we on AI So the are

very the see what is look partners about can comment visibility Matt. approximately as EMS well digestive similar there really a That's and your period Right when from we if be visibility months. there. think of what demand kind into nice X from Hard I now, will is still environment. hearing well as to that OEM, so we're the good, say we as into a QX, it's

In terms competition, and not lot Korea. seeing competition to We're Korea, be of Korea. of out Taiwan out out A Unimicron a in Gold of the major few changes. players Circuit [indiscernible] continues of and Taiwan, a there, still of of ] Taiwan, IZU then out [ competitor of

the So position representative those same of count high have that of HDI some names just in that and are folks we have the layer kind marketplace.

Operator

our Securities. for that B. Riley of question, Mike the with come line from moment One will and Crawford next

Michael Crawford

center drive what me that that don't Or to wrong, that I much is believe of Penang. envisioned out growth move most China, if to coming I'm business from now facility? that something of correct data Penang necessarily that you could Now, further but is of initially and you in expect with

Thomas Edman

Yes.

center in center computing, but the comes customer So, more a Yes, AI China, primary be -- in to When stages you're Mike. the in our will another out it Penang, ramp, there, traditional of Dongguan, slight that China looks Guangzhou -- requirements. the demand, where be of coming it layer at well. customers' particularly as count data generative data cross-qualifying principal distinction demand have of really we -- our China AI out been facility which right. of first The remains so demand, facility facility will higher

be more spot. for you'll towards to versus what advanced of that's at generative in the count XX kind the XX of the required That standard tends we counts So technology the think looking layer sweet applications. as layer as AI technology

in at initial least going case. the that's stage, this So be to

and to get at that well. course, continue expansion longer Penang particularly Of allow count plans, as be and higher term X as we production look add plating as we'll of would into there planning production layer Phase facility efficient capacity that the HDI we to

Michael Crawford

seem then, a And at slowed shifting last wins, extremely quarters, program little lifetime know first slowed really vertical have in bit Okay. I remain not Does value that year, still automotive improved the QX, gears, what least just win had does down ] that in was And XQ? in for that to number overall very you weak? high and much. the [ March, X

Thomas Edman

Yes. Sure.

in number to win $XX were most compares our recent million We $XX to did this So improve. about last quarter. million That up about year.

lower the win a are there. that market seeing seeing related not of really a we that in program to And So and releasing EV much that programs. from number And is customers we're what's happening shift is are this let than less and strong recalibrating see engine, emphasis in internal more traditional for demand terms coming out of programs expected combustion EV, than demand being they're customers of now, as EV. starting demand for to growth less expected,

they to a sort with. looking to they're so, and designs what go of And designs step as at at back their look own own reevaluate their portfolios, taking forward

going think as that's weak call program release. I a So relatively in environment there. to of you're terms on Mike, out right been what's it

Michael Crawford

question then, is on final And Okay. allocation. capital

leverage. targeted So you're below

buyback. have $XX You remaining million on your

investments capital yet Malaysia You have and these Syracuse, deployed. still excess in

that with the are excess? what priorities So

Daniel Boehle

continue We'll the Sure. share buyback. look at to

M&A, we insider to As QX well, did looking offset there. of our dilution the to $XX And you for as of the opportunity market, We quite do as million continue opportunities debt. vestings some have mentioned, buyback remaining then, as whether buy an a we'll at always in well of back there's from at bit our stock.

close hoping decrease current expense a on on my prepared did we we to debt. in as just mentioned re-pricing to that are I remarks, the interest Now, tomorrow --

a As priority. you've mentioned before, that's there's some benefit But to that potentially down. paying not

the of end low we're leverage mentioned, range. you our at As

an there's for potential that if -- So really, we're to market, a look M&A at powder we're keeping the dry in opportunity the opportunistically. continuing

Operator

moment question, William Stein and line Truist for come the One of from next with will that Securities. our

William Stein

can hear Tom, me? you

Thomas Edman

Will. can, I Sure,

William Stein

to great X quarter. you that. I be a both job you a ask revenue for deserve recognition recognize take did guys some wanted It result, might it margins, and in what the to topics. thought and I appropriate second about and a was very good

end not is have which that to markets you are whether First, that's refresh new can or -- going sort revenue. is from of And that, still of already please? incremental be with my memory us, I more ramping you on memory this a vague or going whether revenue whether Penang, another geo this Can you remind have there? transition to

Thomas Edman

Will. your Sure, comments. you thank I And for can,

when center our That's So market. end come there mentioned as I to comes it anchor from, data critical customers earlier, one Penang, computing.

industrial, The medical, instrumentation really instrumentation space. industrial other and is and the

approximately that predominantly in of XX first where that's that a market AI. would is XX% count. is of at for generative that's count phase, so, coming From predominantly now geographic requirements layer mix with busy And standard of from, again, out in technology and layer terms the our extremely XX-layer spot right that coming out we moving the looking -- facility end the to be sweet higher standpoint, China,

timing Will. that balance to make works. the to starting need that's and plan, a need that, It's make XX% programs. that And out really program sure up. the about of are Customers in program for So and ramp been sure intersection the China our a -- where you it's new between have that programs that coming balance of number approval you the

programs customers very so, situation these the can getting that's ramp. that forecast delicate our get to sure make And it's they for they -- for right and a trying as

we customers programs. target And moving so, of lot a little bit really a good cooperation of as at a but with look again, our there,

William Stein

instead building? for you're had? something the and that worth new, but new you? of or never revenue maybe you think Or in in growth well, think, Or a this is the the customers we when conservative already this program like more Is moment. Tom, sense something new that's that about on we truly version, But lingering programs is new, that new be the past, displacing that's new new modeling but XX% had to you should

Thomas Edman

The do they bulk customers, of these program what's there, our anchor that And and are -- will, agreement, with you existing again customers. in standard Will, China. they XX% -- is if in are didn't is, coming much positioning our particularly from happening new technology, customers, we

those. for requirements market for they and is, us, standard share at non-China at looking this opportunity So sourcing a as look technology gain

that from. where is coming XX% that's So

the new working, are as on We by way, well. customers

business neglect I predominantly technology in to base TTM. market a share of it's opportunity terms and as with associated don't it's so, standard gain But and really customers, And that. anchor opportunity plan that for the want

William Stein

to shortages and topic on, maybe we shortages Great. challenged Upstate business aerospace you remind by supply challenges. terms supply other recall, semis. And defense from me the where the been addressing are a chain Can issues, hit bunch think, labor in like of have been if York, of I past, There one has those? New in I I'd in,

Thomas Edman

Sure.

are right. You absolutely

to, back we circuit and last challenges, $XX entirely let's call midst chain board of up electronics. impact some early in a step a supply improvement a those us. TTM of Those the critical real was chain say, supply been to folks If We we real tremendous supply the was a vendors. our from seen, organization area, challenges area, in over We've that with for from tremendous printed stood a year, also what step us. overall in supply just of non-PCB focus chain of the customer causing It's And have were area an you chain. our revenue chain supply working terms pain. helped. million That course, really different for integrated critical for

we're million. feel our QX, most to And issues, in prior we to at that. So most -- give for quarter we quarter, recent our we're still about -- million, were about -- have but $X you down a $X

of of are when facilities, a receiving time more been with progress at more to when incremental in that's bit that progress certainly there. we're but challenge that's look particularly challenged able And labor, of, like to those a improvement receiving from an say, labor. little so takes good making a like So, But still, we operators a supply last you're and It when facility, we're a solid still good source while, I'd now looking about huge issue. at of hiring ramping, improvements. there. We're everyone, labor think still there, We're shortages. to see. bringing we by our focus, XX if just making year, shutdowns, as are When than you these able labor And takes But ramping, more facilities source let's little that's we're a facilities into more bit area a that's labor. challenge. but it chain than not

Operator

now turn this showing Thank back you. like any queue time. call would to closing I'm the no for Edman to the I further in over Mr. questions at remarks. Tom

Thomas Edman

thank for just Sure again wanted wanted made. that I I Yes. everyone to summarize to thing. points critical joining the call. of a few the we

year-on-year growth healthy had of non-GAAP First, from solid performance $XX.X the revenues range. above improved operations million. and We we on and EPS generated a cash operational delivered basis. We flow guided

ratio We net below maintain with continued to debt-to-EBITDA and X.X, sheet a repurchase our balance of range. target solid stock which is a

of joining -- rate efforts as investors much refinanced our really the TTM. customers our few closing, days will to the a this like certainly, to loan, want will in we expense thank in you also lower you, employees, our very there. resulting term supporting next company interest would significant I and I and Dan result our for the for forward. In Finally, quarter going that all and Goodbye. mentioned, for hopefully thank Thank in call. close,

Operator

today's Thank for you concludes participating. This all program.

may You disconnect. now

TTM (TTMI) 31 Jul 242024 Q2 Earnings call transcript