TTM Technologies, Inc. (TTMI): Business Model Canvas [11-2024 Updated]

TTM Technologies, Inc. (TTMI) stands at the forefront of the printed circuit board (PCB) manufacturing industry, leveraging a robust business model that integrates key partnerships, innovative technologies, and a diverse customer base. With a strong focus on aerospace, defense, and automotive sectors, TTM's strategic alliances and comprehensive service offerings position it to meet the evolving demands of complex electronic systems. Dive into the details of TTM's Business Model Canvas to uncover how this company sustains its competitive edge and drives growth in a dynamic market.

TTM Technologies, Inc. (TTMI) - Business Model: Key Partnerships

Collaborations with OEMs and EMS providers

TTM Technologies engages in significant collaborations with both Original Equipment Manufacturers (OEMs) and Electronics Manufacturing Services (EMS) providers. These partnerships allow TTM to leverage the expertise and capabilities of its partners to enhance product offerings and expand market reach. Sales to the ten largest customers accounted for approximately 54% of net sales for the quarter ended September 30, 2024, and 53% for the three quarters ended September 30, 2024.

Strategic alliances in aerospace and defense sectors

TTM Technologies has established strategic alliances within the aerospace and defense sectors, reflecting its commitment to these high-growth markets. For the quarter ended September 30, 2024, net sales from aerospace and defense amounted to $284.3 million, representing 46% of total net sales. These alliances are critical for securing long-term contracts and enhancing TTM's competitive positioning in a sector characterized by stringent regulatory requirements and high technical standards.

Engagements with technology and manufacturing partners

TTM actively engages with various technology and manufacturing partners to optimize its production capabilities and innovate new products. These partnerships are essential for maintaining operational efficiency and advancing technological advancements. For instance, TTM's gross margin for the PCB segment increased to 21.9% for the third quarter of 2024, up from 21.1% in the previous year, driven by improved operational execution and higher sales volumes.

Participation in government contracts and grants

TTM has been involved in several government contracts and grants, particularly in the defense sector, which further solidifies its revenue base. As of September 30, 2024, TTM reported an aggregate amount of $481.4 million allocated to remaining performance obligations for long-term contracts. The company anticipates recognizing approximately 46% of these obligations over the next 12 months, underscoring the significance of government engagements in its business model.

Partnership Type	Key Metrics	Significance
OEMs and EMS Providers	Sales to top 10 customers: 54% of net sales	Enhances market reach and product offerings
Aerospace and Defense	Net sales: $284.3 million (46% of total)	Critical for securing long-term contracts
Technology and Manufacturing Partners	Gross margin: 21.9% (Q3 2024)	Improves operational efficiency and innovation
Government Contracts	Remaining performance obligations: $481.4 million	Solidifies revenue base and future growth

TTM Technologies, Inc. (TTMI) - Business Model: Key Activities

Design and manufacture of PCBs and engineered systems

TTM Technologies specializes in the design and manufacturing of printed circuit boards (PCBs) and engineered systems. For the first three quarters of 2024, the net sales for the PCB segment reached $1,764.7 million, reflecting an increase of 8.0% from $1,634.3 million in the same period of 2023. The company's manufacturing facilities in Asia and North America achieved a capacity utilization rate of 60% and 35%, respectively, compared to 46% and 38% in the third quarter of 2023.

Long-term contract management for complex projects

As of September 30, 2024, TTM Technologies had an aggregate transaction price of $481.4 million allocated to remaining performance obligations for long-term contracts. The company expects to recognize approximately 46% of this revenue over the next 12 months. Revenue from products and services transferred to customers over time accounted for 96% of the company’s revenue, indicating a strong reliance on long-term contractual agreements.

Continuous R&D for innovative technology solutions

TTM Technologies invests significantly in research and development (R&D) to innovate its technology solutions. R&D expenses for the first three quarters of 2024 totaled $21.7 million, which is approximately 1.3% of net sales. The company aims to enhance its capabilities in the aerospace and defense sectors, which accounted for 46% of net sales in the quarter ended September 30, 2024.

Quality assurance and compliance with industry standards

Quality assurance is critical in TTM Technologies’ operations. The overall gross margin improved to 21.1% in the third quarter of 2024, up from 19.8% in the same quarter of 2023, attributed to enhanced operational execution and quality control. Compliance with industry standards is maintained through rigorous quality assurance processes, ensuring that products meet the required specifications and regulatory requirements.

Key Activity	Description	Financial Impact (2024)
Design and manufacture of PCBs	Production of high-quality printed circuit boards for various industries.	Net Sales: $1,764.7 million (8.0% increase)
Long-term contract management	Management of contracts for complex projects, ensuring timely delivery and compliance.	Remaining Obligations: $481.4 million
R&D for innovative solutions	Investment in research to develop new technologies and improve existing products.	R&D Expenses: $21.7 million (1.3% of net sales)
Quality assurance	Processes to ensure product quality and compliance with industry standards.	Gross Margin: 21.1% (up from 19.8%)

TTM Technologies, Inc. (TTMI) - Business Model: Key Resources

Advanced manufacturing facilities in the U.S.

TTM Technologies operates advanced manufacturing facilities primarily in the United States, which are crucial for producing printed circuit boards (PCBs) and RF components. As of September 30, 2024, the total assets of TTM Technologies amounted to approximately $3.42 billion. This includes significant investments in property, plant, and equipment, with capital expenditures for 2024 expected to be between $175 million and $195 million.

Facility Location	Function	Production Capacity
Anaheim, CA	PCB Manufacturing	High-volume production
Santa Clara, CA	RF Components	Specialized RF production
Other U.S. Locations	Engineering and Support	Varied

Skilled workforce with engineering expertise

TTM Technologies boasts a skilled workforce with significant engineering expertise. As of the latest report, the company has approximately 5,500 employees. The workforce includes a mix of engineers and skilled technicians essential for maintaining high-quality production standards and advancing innovative manufacturing processes.

Proprietary technology and design capabilities

The company has developed proprietary technology and design capabilities that enhance its competitive edge in the PCB and RF segments. TTM's investment in research and development was approximately $23.9 million for the first three quarters of 2024, reflecting a commitment to innovation. The company holds numerous patents that secure its unique manufacturing processes and technologies in the PCB industry.

Technology Type	Description	Patents Held
HDI Technology	High-Density Interconnect for complex designs	Multiple patents
RF Technology	Advanced RF component manufacturing	Various patents
Automated Manufacturing	Automation in PCB production lines	Pending patents

Strong customer relationships and contract backlog

TTM Technologies has established strong customer relationships across various sectors, including aerospace, defense, and data center computing. As of September 30, 2024, the company reported a contract backlog of approximately $481.4 million. This backlog indicates robust demand for its products and services, providing a stable revenue stream for the upcoming quarters.

Customer Segment	Revenue Contribution (2024)	Contract Backlog
Aerospace and Defense	$821.8 million	$200 million
Data Center Computing	$363.1 million	$150 million
Medical and Industrial	$86.8 million	$50 million

TTM Technologies, Inc. (TTMI) - Business Model: Value Propositions

High-quality, customized PCB solutions

TTM Technologies specializes in providing high-quality printed circuit board (PCB) solutions tailored to meet the specific needs of its customers. In the first three quarters of 2024, net sales for the PCB segment increased by $130.4 million, or 8.0%, reaching $1,764.7 million compared to $1,634.3 million in the same period of 2023. This growth was primarily driven by an uptick in demand from various end markets, particularly data center computing and aerospace and defense.

Segment	Net Sales (2024 YTD)	Net Sales (2023 YTD)	Increase (%)
PCB	$1,764.7 million	$1,634.3 million	8.0%
RF&S Components	$27.0 million	$29.2 million	-7.4%

Expertise in aerospace and defense applications

TTM Technologies has established itself as a leader in the aerospace and defense sectors, providing specialized PCB solutions that comply with stringent regulatory requirements. For the third quarter of 2024, revenue from the aerospace and defense segment was reported at $284.3 million, marking an increase from $255.6 million in the same quarter of 2023. This expertise not only enhances TTM's reputation but also attracts high-value contracts from government and commercial clients.

End Market	Net Sales (Q3 2024)	Net Sales (Q3 2023)	Increase (%)
Aerospace and Defense	$284.3 million	$255.6 million	11.2%
Data Center Computing	$119.5 million	$99.6 million	19.9%

Commitment to innovation and technological advancement

TTM is dedicated to continuous innovation, investing significantly in research and development. For the first three quarters of 2024, TTM's R&D expenses totaled approximately $23.9 million, up from $19.7 million in the same period of 2023. This commitment to innovation allows TTM to enhance its product offerings and maintain competitive advantages in various markets.

Fiscal Year	R&D Expenses	Percentage of Net Sales
2024	$23.9 million	1.3%
2023	$19.7 million	1.2%

Reliable delivery and project management

TTM Technologies emphasizes reliable delivery and effective project management, which are critical in the fast-paced electronics industry. The company achieved an overall gross margin of 21.1% in the third quarter of 2024, an increase from 19.8% in the same quarter of 2023, largely due to improved operational execution and higher sales volumes. This operational efficiency translates into timely product delivery, meeting customer expectations and enhancing satisfaction.

Quarter	Gross Margin (%)	Previous Year Gross Margin (%)
Q3 2024	21.1%	19.8%
Q3 2023	19.8%	17.9%

TTM Technologies, Inc. (TTMI) - Business Model: Customer Relationships

Direct engagement with OEM customers

TTM Technologies engages directly with Original Equipment Manufacturers (OEMs) to fulfill their custom needs. In the third quarter of 2024, sales to the ten largest customers accounted for 54% of net sales, reflecting a strong focus on key partnerships. The total net sales for the quarter reached $616.5 million, with significant contributions from the aerospace and defense sectors.

Long-term partnerships based on trust and performance

TTM emphasizes long-term partnerships, which are essential for customer retention and loyalty. The company’s revenue from long-term contracts as of September 30, 2024, was approximately $481.4 million, with about 46% expected to be recognized within the next 12 months. This strategic approach enables TTM to build trust and ensure consistent performance, which is critical in the aerospace and defense industries where reliability is paramount.

Support services throughout the product lifecycle

TTM provides comprehensive support throughout the product lifecycle, which enhances customer satisfaction and retention. The company recognized revenue from products and services transferred to customers over time, accounting for 96% of their revenue. This approach ensures that customers receive ongoing support that aligns with their operational needs, particularly in complex sectors like data center computing.

Responsive customer service and technical support

The company maintains a robust customer service framework. The selling and marketing expenses for the third quarter of 2024 were $20.0 million, or 3.2% of net sales, indicating investment in customer support. Additionally, TTM’s operational efficiency, reflected in a gross margin increase to 21.1% for the third quarter of 2024, underscores the effectiveness of its technical support teams in addressing customer needs.

Metric	Q3 2024	Q3 2023	Change
Net Sales	$616.5 million	$572.6 million	+7.7%
Sales to Top 10 Customers	54% of Net Sales	53% of Net Sales	+1%
Gross Margin	21.1%	19.8%	+1.3%
Selling and Marketing Expenses	$20.0 million	$18.8 million	+6.4%

TTM Technologies, Inc. (TTMI) - Business Model: Channels

Direct sales to OEMs

TTM Technologies, Inc. primarily serves Original Equipment Manufacturers (OEMs), with sales to its ten largest customers accounting for approximately 54% of net sales for the quarter ended September 30, 2024. For the three quarters ended September 30, 2024, net sales reached $1,791.8 million, up from $1,663.5 million in the same period of the previous year. The company focuses on high-demand sectors such as aerospace and defense, data center computing, and networking.

Distribution through EMS providers

TTM utilizes Electronics Manufacturing Services (EMS) providers as a significant distribution channel. The company measures customer concentration based on OEM companies due to their direct relationship with end customers. In the third quarter of 2024, the revenue from EMS providers contributed to overall net sales, which increased by 7.7% compared to the previous year.

Online platforms for product information

TTM Technologies maintains an online presence that provides comprehensive product information to customers. This digital channel facilitates communication and enhances customer engagement, allowing for better access to technical specifications and support. The company's website serves as a vital platform for potential customers to explore offerings and make informed purchasing decisions.

Trade shows and industry events for networking

Participation in trade shows and industry events is a crucial strategy for TTM Technologies to enhance visibility and network with potential clients and partners. These events enable the company to showcase its capabilities in PCB manufacturing and RF components, attracting key decision-makers from various industries. The company’s engagement in these events supports its efforts to secure new business opportunities and strengthen existing relationships.

Channel Type	Contribution to Sales (%)	Sales Amount (Q3 2024, $M)	Notes
Direct sales to OEMs	54%	316.5	Majority of sales come from top ten customers.
Distribution through EMS providers	Not specified	Not specified	Significant channel for reaching OEMs.
Online platforms	Not specified	Not specified	Enhances customer engagement and access to information.
Trade shows and industry events	Not specified	Not specified	Key for networking and visibility in the industry.

TTM Technologies, Inc. (TTMI) - Business Model: Customer Segments

Aerospace and Defense Industries

TTM Technologies serves the aerospace and defense sectors by providing high-performance printed circuit boards (PCBs) and specialized components. As of September 30, 2024, net sales from the aerospace and defense segment reached $284.3 million for the third quarter, up from $255.6 million in the same quarter of the previous year. For the first three quarters of 2024, total sales amounted to $821.8 million, an increase from $742.2 million in 2023. This segment constituted approximately 46% of TTM's overall net sales in the third quarter.

Automotive Manufacturers

In the automotive sector, TTM Technologies reported net sales of $85.0 million during the third quarter of 2024, a slight decrease from $86.8 million in the same quarter of the previous year. For the first three quarters of 2024, sales in this segment totaled $241.3 million, compared to $272.6 million in 2023. The automotive segment represented about 14% of total net sales for the quarter ended September 30, 2024.

Data Center and Computing Firms

TTM has experienced significant growth in sales to data center and computing firms, with third-quarter net sales reaching $119.5 million, up from $99.6 million year-over-year. In the first three quarters of 2024, sales were reported at $363.1 million, compared to $221.8 million during the same period in 2023. This end market accounted for 19% of TTM's net sales in the third quarter.

Medical and Industrial Instrumentation Sectors

For the medical and industrial instrumentation sectors, TTM generated $86.8 million in net sales for the third quarter of 2024, a decline from $90.7 million in the previous year. Total sales for the first three quarters of 2024 were $251.5 million, down from $272.5 million in 2023. This segment represented 14% of total net sales for the quarter ending September 30, 2024.

Customer Segment	Q3 2024 Net Sales (in millions)	Q3 2023 Net Sales (in millions)	YTD 2024 Net Sales (in millions)	YTD 2023 Net Sales (in millions)	Percentage of Total Sales Q3 2024
Aerospace and Defense	$284.3	$255.6	$821.8	$742.2	46%
Automotive	$85.0	$86.8	$241.3	$272.6	14%
Data Center Computing	$119.5	$99.6	$363.1	$221.8	19%
Medical/Industrial Instrumentation	$86.8	$90.7	$251.5	$272.5	14%

TTM Technologies, Inc. (TTMI) - Business Model: Cost Structure

Manufacturing and operational expenses

TTM Technologies incurred significant manufacturing and operational expenses. For the first three quarters of 2024, the total cost of goods sold was approximately $1,439.4 million, reflecting an increase compared to $1,327.4 million during the same period in 2023. The gross margin for the third quarter of 2024 was reported at 21.1%, up from 19.8% in the third quarter of 2023. The manufacturing expenses are influenced by the utilization rates in the production facilities, which were 60% in Asia and 35% in North America for the third quarter of 2024.

R&D investments for technology development

Research and Development (R&D) expenses for TTM Technologies were reported at $8.1 million for the third quarter of 2024, up from $6.2 million for the same quarter in 2023. For the first three quarters of 2024, R&D expenditures totaled $23.9 million, representing 1.3% of net sales, compared to $19.7 million, or 1.2% of net sales, for the first three quarters of 2023. This growth in R&D investment reflects TTM's commitment to technological advancements and innovation in its product offerings.

Marketing and sales expenditures

TTM Technologies allocated approximately $20.0 million to selling and marketing expenses for the third quarter of 2024, which accounted for 3.2% of net sales, compared to $18.8 million, or 3.3% of net sales, in the third quarter of 2023. For the first three quarters of 2024, total selling and marketing expenses reached $60.1 million, which represented 3.4% of net sales, slightly down from 3.5% in the previous year. These expenditures are primarily driven by labor costs, stock-based compensation, and travel expenses.

Administrative and overhead costs

General and administrative expenses for TTM Technologies increased to $124.8 million, or 7.0% of net sales, for the first three quarters of 2024, compared to $111.8 million, or 6.7% of net sales, in the same period of 2023. This increase was attributed to higher consulting and legal costs, labor expenses, and stock-based compensation, along with a $6.1 million write-down related to a building in Hong Kong. The administrative costs play a crucial role in supporting the overall operational efficiency of the company.

Cost Category	First Three Quarters 2024 (in millions)	First Three Quarters 2023 (in millions)	Change (%)
Cost of Goods Sold	$1,439.4	$1,327.4	8.4%
Research and Development	$23.9	$19.7	21.4%
Selling and Marketing	$60.1	$58.2	3.3%
General and Administrative	$124.8	$111.8	11.9%

TTM Technologies, Inc. (TTMI) - Business Model: Revenue Streams

Sales of PCBs and Engineered Systems

TTM Technologies generates a significant portion of its revenue from the sale of printed circuit boards (PCBs) and engineered systems. For the first three quarters of 2024, net sales for the PCB segment reached approximately $1,764.7 million, an increase of $130.4 million or 8.0% compared to the same period in 2023. The demand is primarily driven by growth in the aerospace and defense and data center computing markets.

Segment	Net Sales (Q3 2024)	Net Sales (Q3 2023)	Change
PCB	$606.8 million	$563.7 million	+7.6%
RF&S Components	$9.7 million	$8.9 million	+9.4%
Total	$616.5 million	$572.6 million	+7.7%

Long-Term Contracts for Specialized Projects

TTM Technologies engages in long-term contracts for specialized projects, expecting to recognize revenue on approximately 46% of the remaining performance obligations, valued at $481.4 million, over the next 12 months. Revenue recognized from contract liabilities for the three quarters ended September 30, 2024, amounted to $33.3 million.

Service Agreements and Maintenance Contracts

Service agreements and maintenance contracts also contribute to TTM's revenue. As of September 30, 2024, the company had a gross margin of 21.1% for the third quarter, reflecting improved operational execution and higher sales volume, particularly in aerospace and defense sectors. The gross margin for the PCB segment was 21.9% for Q3 2024, up from 21.1% in Q3 2023.

Revenue from Government Contracts and Grants

TTM Technologies benefits from government contracts and grants, particularly within the aerospace and defense sectors. The revenue from these contracts is included in the PCB segment sales, which accounted for 46% of net sales in Q3 2024. The company has reported strong performance in this area, with significant revenue contributions from government-related projects.

Revenue Source	Q3 2024 Revenue	Q3 2023 Revenue
Government Contracts	$284.3 million	$255.6 million
Long-Term Contracts	$33.3 million	$33.9 million
Total Revenue from Specialized Projects	$317.6 million	$289.5 million

Updated on 16 Nov 2024

Resources:

1. TTM Technologies, Inc. (TTMI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TTM Technologies, Inc. (TTMI)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View TTM Technologies, Inc. (TTMI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.