| Over a week ago | ||||
TTM Technologies… TTM Technologies announced that that it has signed a definitive agreement to sell its Shanghai Backplane Assembly for approximately $11.8M, subject to customary post-closing adjustments, to DBG Holdings Limited , which is wholly owned by DBG Technology , a public company traded on the Shenzhen Stock Exchange. We expect this transaction to close near the end of the first quarter. BPA is a small assembly facility that generated $44.7M in revenues and an immaterial amount of operating income in 2022. This transaction is consistent with our strategy to continue developing TTM as a diversified technology solutions leader for our customers, and to reshape our core business portfolio for improved differentiation, financial stability and long-term profitability. This strategy entails investing in differentiated Commercial and Aerospace & Defense capabilities. Following this divestiture to DBG, TTM will exit the commercial backplane assembly business. | ||||
| Over a month ago | ||||
TTM Technologies… TTM Technologies announced that it plans to close three manufacturing facilities in order to improve total plant utilization, operational performance, customer focus and profitability. TTM intends to close PCB manufacturing operations in Anaheim and Santa Clara, California, and Hong Kong and to consolidate the business from these impacted sites into TTM's remaining facilities. The plant closures are expected to improve both facility and talent utilization across our footprint resulting in improved profitability. TTM expects to continue to support impacted customers at its remaining manufacturing sites. TTM expects to close these three sites over the course of this year and, where appropriate, transfer employees to other facilities nearby. For those employees who do not transfer, TTM plans to offer long notice periods, severance compensation, and extended medical coverage. The company expects a total reduction of approximately 750 employees, which is approximately 5% of the global workforce in conjunction with the consolidation and resulting plant closures. The company expects to record between $22M and $28M in separation, asset impairment and disposal costs related to this restructuring, primarily between now and the end of 2023. Approximately 80% of these costs are expected to be in the form of cash expenditures and the rest in the form of non-cash charges. These actions are expected to yield an annual operating profit increase of approximately $22 to $27 million after the facilities are closed and the transferred business is fully assimilated within our remaining footprint. | ||||
"While demand in the… "While demand in the Aerospace and Defense market remains strong, we have seen a reduction in bookings in our commercial end markets due to inventory reductions, weaker end market demand and production inefficiencies in our Asia Pacific manufacturing facilities due to Chinese New Year. As a result, TTM estimates that revenue for the first quarter of 2023 will be in the range of $550M to $590M, and non-GAAP net income will be in the range of 16c 22c per diluted share. We also announced a plan for the consolidation of our manufacturing footprint in a press release issued today. Consensus for Q1 revenue is $639.45M. | ||||
Reports Q4 revenue … Reports Q4 revenue $617.16M , consensus $658.57M .Adjusted EBITDA in the fourth quarter of 2022 was $81.6 million, or 13.2% of sales compared to adjusted EBITDA of $70.4 million, or 11.8% of sales for the fourth quarter of 2021."TTM delivered non-GAAP earnings above the midpoint of guidance. Of particular note, we saw strong cash flow in the fourth quarter of $77.6 million, which allowed us to repay a portion of our Term Loan B on January 3rd, 2023, and reduce our net leverage to 1.5x, below our 2x target," said Tom Edman, CEO of TTM. "We also saw the second quarter in a row of record bookings of $464.3 million in the Aerospace and Defense end market," concluded Mr. Edman. | ||||
TTM Technologies… TTM Technologies announced that pending confirmation by the Defense Counterintelligence and Security Agency, or DCSA, the TTM board of directors has adopted a special board resolution, or SBR, replacing the special security agreement, or SSA, that the company had entered into with the DCSA in 2010. The replacement of the SSA with the SBR is a result of the significantly reduced foreign ownership of TTM. The effective date of the SBR is February 2. The SBR agreement with DCSA codifies the standing Government Security Committee of TTM's board of directors, consisting of at least 3 Board members that hold a National Security Clearance. In addition, the SBR dictates that TTM will maintain its policies and procedures that have been established pursuant to the provisions of the SSA to mitigate risks to TTM's operations that serve the national security of the United States, including the maintenance of its cybersecurity plan that meets the requirements of NIST 800-171. DCSA will continue to review TTM's compliance with the terms of the SBR annually at each of TTM's sites which operate under a U.S. Department of Defense security clearance. This change acknowledges that TTM no longer has any significant foreign owners of its equity. In addition, all of TTM's board is currently comprised of U.S. citizens and per the terms of the SBR, no foreign citizen is allowed to sit on TTM's board in the future. | ||||
Stifel analyst Matthew… Stifel analyst Matthew Sheerin downgraded TTM Technologies to Hold from Buy with an unchanged price target of $17. The analyst sees risks to forward consensus sales and adjusted earnings estimates due to incremental weakness within the cloud and datacom markets as well as expectations of margin headwinds later this year, as the company ramps production at its new facilities in Malaysia. The firm reduced estimates for TTM's computing and network/telecom segments on additional signs of weaker demand and an inventory correction across those markets. | ||||
| Over a quarter ago | ||||
TTM Technologies (TTMI)… TTM Technologies (TTMI) and Raytheon Missiles & Defense, a Raytheon Technologies (RTX) business, have reached a multi-year agreement to provide radio frequency assemblies, electronic hardware, and printed circuit boards , PCBs for the SPY-6 family of radars. The agreement has the potential to reach $500M over five years. "SPY-6 provides the unparalleled capability to the U.S. Navy and will be on 40 ships of seven different classes by 2030," said Kim Ernzen, President of Naval Power at RMD. "Agreements like these ensure we continue to meet the demands of our customers." TTM designs and manufactures the Beam Form Network along with PCBs, and specialized assemblies for the SPY-6 family of radars. This type of multi-year commitment for supply enables TTM and its supply chain partners to increase value to the end customer and transform the way TTM's supplier partners conduct business, creating efficiencies throughout the supply chain. "This significant agreement further strengthens our partnership with RMD and positions both companies for future business opportunities where technology and innovation are key points of focus for the ultimate end user, the U. S. Government," said Catherine Gridley, Executive Vice President and President, Aerospace & Defense/ Specialty Business Unit. When compared to legacy radars, SPY-6 brings new capabilities to the surface fleet, such as advanced electronic warfare protection and enhanced detection abilities. SPY-6 radar installation is complete on the Navy's first Flight III destroyer, the USS Jack H. Lucas which is scheduled to be operational in 2024. | ||||
Sees Q4 revenue… Sees Q4 revenue $630M-$670M, consensus $677.02M. | ||||
Reports Q3 revenue… Reports Q3 revenue $671.1M, consensus $675.58M. | ||||
TTM Technologies Radio… TTM Technologies Radio Frequency & Specialty Components Business Unit has entered into a distribution agreement with RFMW, a pure play premier distributor for radio frequency, RF, and microwave components and semiconductors. "TTM is committed to being the leader in the design and manufacture of high-frequency RF and microwave components and assemblies," said Bo Jensen, President, RF&S Business Unit. "We are delighted to add RFMW as a new distributor to our distinguished distribution channel. RFMW has a proven 20-year track record of success in this ever-changing technological environment. This partnership provides a great opportunity for both companies, and the customers we serve." TTM will be offering its complete line of RF&S products through RFMW, including its proven signature lineup of Xinger brand products. The distribution services will include opportunity identification and development, technical sales support, and distribution. The TTM components will also be available through the RFMW online store. | ||||
