TTM Technologies Inc. (NASDAQ:TTMI) Q2 2017 Earnings Conference Call - Final Transcript

Aug 02, 2017 • 04:30 pm ET

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TTM Technologies Inc. (NASDAQ:TTMI) Q2 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the TTM Technologies Inc. Q2 Earnings Call. At this time, I would like to turn the conference over to Sameer Desai, Senior Director of Investor Relations. Please go ahead sir.

Executive
Sameer Desai

Thank you. 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. Actual results could differ materially from these forward-looking statements due to one or more risks and uncertainties including the factors explained in our most recent Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission.

These forward-looking statements are based on management's expectations and assumptions as of the date of this presentation. TTM does not undertake any obligation to publicly update or revise any of these statements, whether as a result of new information, future events or other circumstances, except as required by law. Please refer to the full disclosures regarding the risks that may affect TTM which may be found in the reports on Form 10-K, 10-Q, 8-K, the registration statement on Form S-4 and the Company's other SEC filings.

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

I would now like to turn the call over to Tom Edman, TTM's Chief Executive Officer. Please go ahead, Tom.

Executive
Thomas Edman

Thank you, Sameer. Good afternoon and thank you for joining us for our second quarter 2017 conference call. I will begin with a review of our business strategy, including highlights from the quarter, followed by a discussion of our second quarter results.

Todd Schull, our CFO, will follow with an overview of certain key balance sheet and cash flow metrics, our Q2 2017 financial performance and Q3 2017 guidance. We will then open the call to your questions. Revenues for the quarter were $627 million, growing 4% year-on-year representing the third consecutive quarter of organic year-over-year growth. In addition, this was the highest revenue second quarter in the history of the Company. We also demonstrated solid operating results with non-GAAP operating income growing 18% year-on-year to the high end of guidance.

Non-GAAP EPS of $0.31, although higher than last year's $0.28 was negatively impacted by approximately $0.05 in the quarter by a non-cash foreign exchange loss due to the weakening US dollar. The second quarter results validated many of the elements of the strategy we have communicated over the past year.

First, the diversification of our end-markets helped to reduce quarterly volatility and stabilize our revenues in what was a challenging quarter in one of our end-markets. On a year-over-year basis, most of our end-markets grew