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TTM Profit Slumps

Times aren’t getting any easier for circuit board makers.

Santa Ana-based TTM Technologies Inc. said Monday its net income missed estimates during the first quarter as falling prices squeezed profits.

The company said first-quarter net income dropped 30% from a year earlier to $4.5 million.

Earlier this year, TTM said it expected $4.9 million to $6.1 million in profits for the first quarter.

The company’s gross margin fell from 30% during the first quarter of 2004 to 23% in the first quarter of this year.

The company blamed competitive pricing and costs related to expanding its Midwest plant for the lower profits. Regulatory compliance with Sarbanes-Oxley also was a factor, according to TTM.

“Market demand was relatively stable in the first quarter of 2005, albeit with slightly greater than expected pricing pressure,” said Kent Alder, TTM’s chief executive.

TTM’s sales were up 2% from a year earlier to $59 million, the low end of its earlier expectations.

The company makes circuit boards used in computers, wireless phones and other electronics. Companies hire TTM for quick turnaround of custom circuit boards for use in their products.

TTM’s shares slumped more than 13% in afterhours trading.

For the second quarter of 2005, TTM said it estimates revenue of $58 million to $61 million and earnings of $4.1 million to $4.9 million.

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