Good day, everyone and welcome to the TTM Technologies Inc., third quarter 2015 earnings conference call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note, today's call is being recorded and I would be standing by should you need any assistance. It is now my pleasure to turn the conference over to Mr. Tony Righetti. Please go ahead, sir.

Thank you, operator. Before we get started, I would like to remind everyone that today's call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to TTM’s future business outlook. Actual results could differ materially from these forward-looking statements due to one or more risks and uncertainties, including the factors explained in our most recent Annual Report on Form 10-K, and our other filings with the Securities and Exchange Commission. These forward-looking statements are based on management's expectations and assumptions as of the date of this presentation. TTM does not undertake any obligation to publicly update or revise any of these statements, whether as a result of new information, future events or other circumstances, except as required by law. Please refer to the full disclosures regarding the risks that may affect TTM, which may be found in the reports on Form 10-K, 10-Q, 8-K, the registration statement on Form S-4 and the company's other SEC filings. We will also discuss on this call, certain non-GAAP financial measures, such as adjusted EBITDA. Such measures should not be considered as a substitute for the measures prepared and presented in accordance with GAAP and we direct you to the reconciliation of non-GAAP to GAAP measures included in the company's press release, which was filed with the SEC and is available on TTM's website at www.ttm.com. I would now like to turn the call over to Tom Edman, TTM's Chief Executive Officer. Please go ahead, Tom.

Thank you, Tony. Good afternoon and thank you for joining us for our third quarter 2015 conference call. I'll begin with a review of our business, which for the first time, includes a full quarter of contribution from our acquisition of Viasystems. Then, I will provide a brief update on the integration of Viasystems business into TTM. Todd Schull, our CFO will follow with a discussion of our Q3 financial performance and provide Q4 guidance. We will then open the call to your questions. Some of the highlights from Q3 include our net sales of $652 million; non-GAAP net income attributable to stockholders of $23.8 million or $0.24 per diluted share, non-GAAP operating margin of 6.9% and adjusted EBITDA of $87.6 million or 13.4% of net sales. Our operational teams delivered strong third quarter performance in our first full quarter since the Viasystems acquisition. Revenue was within our guidance range and our non-GAAP earnings exceeded our guidance range and the consensus analyst expectations. Our third quarter revenues were driven by consistent demand from the majority of our end markets with demand growth in the computing and aerospace and defense end markets. Operationally, yield performance improved in several of our larger facilities in China and we were particularly encouraged by the yields as we ramp new products for the cellular phone end market. We remain encouraged by the ramping activities of our cellular phone customer base in Q4 as well. During the quarter, our advanced technology work, which includes HDI, rigid flex and substrate accounted for approximately 34% of our company's revenue. This compares to approximately 33% in Q2. We are continuing to seek opportunities to leverage our advanced technology capabilities. One of our key focus areas has been the automotive market, where we have identified opportunities in infotainment applications for…

Thanks, Tom and good afternoon, everyone. For the third quarter, net sales were $652 million, compared to net sales of $345.3 million in the third quarter of 2014 and compared to second quarter net sales of $445.4 million. The year-over-year increase in revenue is driven by a 7% increase in organic revenue and a full quarter contribution of sales from the Viasystems acquisition of approximately $283 million. GAAP operating income for the third quarter was $23.6 million compared to a GAAP operating income of $12.3 million in the third quarter of 2014 and compared to an operating loss in the second quarter of $7.1 million. On a GAAP basis, our net loss for the third quarter of 2015 was $2.2 million or $0.02 per share. This compares to GAAP net income of $7.7 million or $0.09 per diluted share in the third quarter of last year and a GAAP net loss of $36.6 million or $0.41 per share in the second quarter of 2015. Our GAAP results in the third quarter were impacted by approximately $12.3 million of expenses related to the acquisition of Viasystems. The remainder of my comments will focus on our non-GAAP financial performance. Our non-GAAP performance excludes restructuring, impairment and early extinguishment of debt related costs, acquisition related costs, purchase accounting impacts, certain non-cash expense items and other unusual or infrequent items as well as the associated tax impact on these items. Additionally, we exclude nonoperational changes in our tax expense such as impacts of retroactive changes in the tax law and non-cash discrete items. We present non-GAAP financial information to enable investors to see the company through the eyes of management and to provide better insight into the company's ongoing financial performance. Gross margin in the third quarter was 15.0% compared to 14.3% in the…

[Operator Instructions] And we'll go first to Matt Sheerin with Stifel. Please go ahead.

Yes, thanks, and good afternoon, guys. First question just regarding your outlook on telecom networking, any sense of whether particularly the build-out and the LTE build-out in China where we’ve seen a pause, any sense if that’s bottomed out here, any signs that bookings may pick up in Q1 or sometime in early next year?

So, yeah, thanks, Matt, this is Tom. I will take that one. The situation as I do think we're at this point bumping along the bottom of the cycle. There are indications if you talk to as – as we talk to our customers and we hear what they are hearing from their customers, generally the carriers in China that there is an expectation that now that they are through their restructuring on the service providers in China that we would start to see an increase or that they would start to see an increase in base station orders. I don't think that will happen in Q4, but it's an indication that we could start to see that demand early next year. At this point I think it’s everyone is in a wait-and-see mode, but at least the service providers in China are starting to indicate some optimism going into 2016.

Okay. And I mean right now in terms of, I know that the costs you are taking out related to the Viasystems acquisition, but are you looking at any additional cost-cutting actions if you don't see business return in that or are you just expecting a sort of a question of when and not if?

So the plants and the facilities that we have that service that market generally are servicing a broad set of customers. So this is a portion of the market that they service. They will -- generally it’s high layer conventional boards. So you'll see demand coming out of the networking space into those plants, also some industrial demand and then some other high layer account demand. So they're working to fill or to increase their utilization rates with other product in the meantime. So at this point we're always, as you know, we are always adjusting our direct labor in the facilities and doing our best to efficiently produce product in the facilities that we have. That includes high layer account conventional work, but and then as you also know, we are working very aggressively on overall cost reduction as we come together as a company. Those efforts are going to continue as well. So we will be continuing to make adjustments with our overall business climate and focus there versus just looking at one particular market.

Okay. And in the automotive you talked about the cross-selling opportunities on the infotainment side, and I know that is a fairly long sales cycle of getting qualified, so when do you actually – are we looking at couple of years out or next year, when you do expect to see --?

It's generally a couple of years out that your building your qualifying for parts that are used and in a model year that’s three years out, so generally you start to see demand two years out. So we're started, we’re really seeding volume opportunities for not 2016 but 2017 there in those new opportunities on automotive. As you know, of course Viasystems had existing capacity for the automotive market. So that volume we expect to continue, we expect that to continue to grow as we go forward. And then, the RF radar board that I mentioned that actually comes out of the legacy Viasystems footprint as well. So, we've been working for several years on seeding volume requirements there and are now starting to see the volume materialize. And hopefully that gives you better flavor.

Yeah absolutely, okay alright that's it from me. Thank a lot guys.

And we’ll go next to Prabh Gowrisankaran with Canaccord. Please go ahead.

Hi, thanks to take my question. Couple of quick questions, one just based on the guide on your pro forma for 2014 looks like it’s down what 5%, 6% in Q4, is that mostly networking telecom because you talked about smartphones being up 43% year-on-year and automotive up 9%, if you can provide more color that would be helpful?

Yeah, definitely if you look Q4 against Q4, and again we're talking about expectations, we would see that coming from, yes from the telecom networking, space networking communication, we would also be seeing that come from medical, industrial, instrumentation area and I commented a little bit on the energy side also. If you look at overall industrial area feeling some of the weight of it I think, the macroeconomic softness is out there.

Another question I had was just on in terms of the smartphones up 43%, is it new product cycle, are you starting to expand beyond your largest customer and are you picking up new products at different customers?

Yeah, so we've been on a pretty long-term effort to grow beyond just our largest customer, we have a strong and developing position with other customers, I’ll just say in Greater China and in fact I’ve seen building demand there over time. Q3 was a little bit of weaker quarter there but if you looked at the last three, four quarters, we’ve seen good growth in the Greater China region for cellular phone demand. We are expecting to you know we’re going to continue those efforts as we go forward as an important part of diversifying our cell phone exposure.

Last question I had was just on utilization, in terms of you had high 93% in APAC, do you see it going higher than that in Q4 with smartphone is expected to grow? And the second part of it was North America utilization, does it go down, does it get repurpose once you shut down Via, can you get up beyond the 60% level?

Okay, so on the Asia side, what we would expect to see and what we typically do see in the fourth quarter is a climb in the utilization rates. And we would expect that particularly in advanced technologies space for this fourth quarter as well. On the North America side, as you know we’re still in operation at the plants that we will be closing and when those plants close, we would expect an uptick in utilization in North America, it will be relative minor about 2% to 3%, but we would see an uptick in utilization rates there. That gets us closer to do that 60% and then of course the aerospace and defense strength we've been seeing as those bookings flow into revenue, we’d also expect that to help us on the utilization side.

Okay great, thanks for taking my questions.

[Operator Instructions] will go next to Sean Hannan with Needham & Company. Please go ahead.

Yeah hi, thanks for taking questions here actually, a lot of my primary questions have been asked. Let me see if I can take maybe a different angle on some of them. So, maybe a high-level question here, so now that you had some time under your belt with the assistance and equation, can you talk at a broader level on the cross-sell, obviously addressing aspect of that in the automotive but any incremental momentum or signs of encouragement in terms of customers looking at improving qualification, design and [indiscernible] averages say with your programs?

So, I'll give you, let me just give you a few broad examples where are definitely seeing interest in the medical industrial instrumentation market for what we call cross sell efforts. A lot of this is coming out of the legacy TTM side of the business because legacy TTM really had, we had a North American facility servicing that market. In general, our Asian facilities we’re servicing only volume, high-volume portions of the market, it’s a very diverse set of customers as you can imagine and we as legacy TTM really didn't have a solution in Asia to service that market. With Via coming on board, we’re bringing an end of the footprint our plant in Guiyang, which is in southern China, a facility that it’s a really mix low-volume targeted facility, fits in perfectly as a base for us to offshore volume requirements from that customer base. So we're finding a number of you know our customers excited about the opportunity as of course we’re dealing with this situation industrial, where there is a little bit of weight on the demand side but balance against that we're seeing a lot of interest from the customer base and that opportunity in Asia. So that's been a real positive. Networking communications area which is very interesting, you think with the strength of legacy TTM in that market that we’d be very well known by the customer base, generally that's the case but there are certain customers that had been very loyal and focused on supply from the legacy Via footprint, who are now seeing with legacy TTM coming into that footprint, an opportunity to use our Chippewa Falls, Wisconsin facility for some of their advanced -- more advanced technology and prototyping requirements. So we're starting to see a nice move of legacy Via customers into our Chippewa Falls facility in the networking, comm area, and at the same time we're offloading some of our Chippewa Falls business because that facility is pretty full into late – some of the footprint North America that legacy Via brings to TTM. So those are just a couple of areas in addition to automotive where we’re seeing interest and I’d only add that in the QTA space, the combination is terrific. The QTA capabilities that Via brings us with our San Jose facility in particular and Toronto, are just providing – our sales force is very excited about bringing QTA opportunities into those facilities. So if you look at the macroeconomic environment, there is always some challenges, but on the other side, we're seeing great excitement that I think we’ll feed into the long-term growth for the overall business from our customer base.

That’s great color and very encouraging. So thanks for all that detail. Last question here, Todd, you just touched a few times on some of the softness that you're seeing within the combined new industrial medical energy, is there a way perhaps to elaborate little bit more on that in terms of the differentiation of the demand softness that you would see one versus another what you’re explicitly experiencing today and how that is integrated into your guidance for fourth quarter? Thanks.

Sure. I think we have seen softness in a number of customers, not all of the customers of course in a very diverse space. But primarily, so the first to sort of it was in the energy space affecting our North Jackson, Ohio facility, which has been a facility that serviced primarily energy in the last several years and that has had a very strong impact on their business. We’ve seen impact also on our electro-mechanical or EM solutions business from the energy side, primarily alternative energy side impacting that business. And then beyond that, if you just look at some of the general industrial customers who have been ordering from both our North America and then also our Asia footprint, I mentioned Ju Yang [ph] facility in particular. That customer base has just been struggling, it’s hard to pin down exactly why except that -- I would say that it’s generally tied to demand that there are weakness in demand that they are seeing in emerging markets and in industrial applications and that’s slowed them down, primarily equipment providers there and as well as in the instrumentation space where again you got equipment providers that are feeling some of that weakness. So hopefully that gives you a feel for it. I think the energy first to hit and then gradually we've seen certainly this quarter and what we're forecasting into the fourth quarter just a general weakness from the other industrial and instrumentation customers, particularly in equipment.

Very helpful. Thanks folks.

Okay, thank you.

[Operator Instructions] It appears we have no further questions at this time.

Okay. Well, this is Tom Edman, I’ll just wrap by reiterating a few of the critical messages here. We did have a very strong third quarter at TTM. I really would like to thank our employees for delivering on that first quarter combined operations in such a successful manner. Secondly, as we go forward, we have a strategic direction as an integrated company to build on our technology leadership, build on the cross-selling examples and other examples that our company is pulling together and continue to deliver on synergies and our synergy plan. So we leave in summary that TTM's position is very well. We're in the right market and we’re ready for 2016 as we head into that year. Thank you all and thank you for listening.