CSFB Downgrades TTM Technologies

Analyst Michael Walker says the printed circuit board maker's quickturn business is weakened with the market struggling with excess capacity

CS First Boston downgrades printed circuit board maker TTM Technologies (TTMI ) to neutral from outperform.

Analyst Michael Walker says $59 million first-quarter revenue was at the low end of guidance and 11 cents earnings per share missed the 13 cents earnings per share consensus.

He says second-quarter guidance was below views, as well. He notes after strengthening in February, quickturn business (21% of revenues) weakened considerably in March, with first-quarter pricing down 4%.

Walker says volume business is in line, but profitability was skewed lower by higher-margin quickturn deterioration. He notes a quickturn market is struggling under the weight of excess capacity in the industry. He cuts his 60 cents 2005 earnings per share estimate to 48 cents and sets a 58 cents 2006 earnings per share estimate.

All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report.
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