TTM Technologies (TTMI), a global printed circuit board manufacturer, swung to a net loss for the quarter ended Jun. 30, 2014. The company made a net loss of $3.10 million or $0.04 a share in the second-quarter against a profit of $13.14 million or $0.16 a share in the previous year period. Adjusted earnings per share met the analysts' expectation of $0.05 a share.
Revenue during the second-quarter went up marginally 1.97 percent to $297.64 million from $291.90 million in the last year period.
Gross margin contracted by 363 basis points over the previous year period to 12.97 percent. Total expenses as a percentage of revenues increased to 98.93 percent from 93.70 percent in the same period last year. That has resulted in contraction of 864 basis points in operating margins to 1.07 percent.
The company disclosed operating income of $3.20 million, compared with $28.35 million in the last year period.
"We generated sales and non-GAAP earnings in line with our expectations for the second quarter," said Tom Edman, chief executive officer of TTM. "We are pleased with our strong performance in the networking/ communications and aerospace & defense end markets. In most other end markets, we experienced normal seasonality, with somewhat broader softness in the computing end market."
"Based on our backlog and customer product ramps, we continue to expect our financial performance to be stronger in the second half of the year. Accordingly, we expect robust sales growth for the third quarter with improved utilization levels in our advanced technology facilities," added Edman.
The company expects the third quarter revenues to be in the range of $325 million to $355 million. It anticipates non-GAAP earnings per share at $0.11 - $0.17 for the third quarter.
Cash Flow
As on Jun. 30, 2014, the company's cash balance stood at $282.04 million, up 22.36 percent or $51.54 million from Jun. 30, 2013.
Working Capital
TTM Technologies has witnessed a decline in the working capital over the last one year. The company's working capital stood at $303.88 million as at Jun. 30, 2014, down $20.52 million or 6.33 percent from $324.40 million on Jun. 30, 2013. It registered a decrease in current ratio to 1.75 as at Jun. 30, 2014 from 1.80 on Jun. 30, 2013.
Debt Position
The company has witnessed an increase in short-term debt over the last one year. As on Jun. 30, 2014, short-term debt stood at $127.33 million, up 164.71 percent or null million, from Jun. 30, 2013.
The company's total debt was 8.27 percent of total assets as on Jun. 30, 2014, compared with 33.61 percent on Jun. 30, 2013.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has declined to 0.54 from 4.79 in the same period last year.
Shares of the company were unchanged at $8 on Wednesday.
