COSTA MESA, CA – TTM Technologies reported fourth quarter net sales were $711 million, down 3.8% year-over-year and 5.9% sequentially.

GAAP net income for the fourth quarter was $52.5 million, an increase of 6.7% year-over-year and 94.4% sequentially. GAAP operating income was $42.8 million, down 39.7% compared to the fourth quarter of 2017 and 21.6% sequentially.

“For the fourth quarter, TTM delivered earnings above the high end of guidance, despite softening commercial end markets,” said CEO Tom Edman. “We were pleased to see strong year-over-year growth from the aerospace and defense, computing and medical/industrial/instrumentation end markets that partially offset weakness in our cellular and automotive end markets. Solid operational execution and expense management resulted in our operating margin exceeding expectations.”

Net sales for fiscal year 2018 were $2.9 billion, up 7.1% year-over-year. GAAP net income was $173.6 million, up 40%. GAAP operating income was $159.1 million, a decrease of 25.2%.

“2018 validated TTM’s strategy of diversification, differentiation and discipline.  We saw solid organic growth in the aerospace and defense, medical, industrial and instrumentation and computing end markets. In addition, we closed the acquisition of Anaren, which allows us to engage with customers earlier in the design cycle, providing differentiated, value-added RF solutions.”

For the first quarter of 2019, TTM estimates revenue in the range of $610 million to $650 million.

“In the first quarter of 2019, we are seeing significant weakness in our cellular end market, which is resulting in the under-utilization of our advanced technology factories. Consequently, we are exercising discipline in managing our costs and focusing on continued cash flow generation. Longer term, we are confident in our diversification and differentiation strategy as well as secular growth drivers such as 5G wireless technology, increasing automotive electronic content, and ongoing demand strength in aerospace and defense electronics.”

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