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What:TTM Technologies (NAS: TTMI) dropped 26% in intraday trading today after announcing an asset impairment charge and issuing disappointing guidance.
So what: Second-quarter non-GAAP EPS of $0.40 matched the consensus estimate and increased 67% year over year. GAAP EPS of -$0.26 declined from $0.06 in the year-earlier quarter, includes a charge of $46.6 million, or $0.57 per basic share, for an asset impairment charge primarily related to equipment at a plant that was acquired in 2007. Revenue of $366 million grew 9% year over year.
Now what: Management noted that gross margin came in below its expectations but did not offer a specific explanation. It also said the equipment it wrote down was "not suited for the advanced technology demands of our current customers" and was related to "weaker than expected performance at this facility." It looks like that weaker than expected performance will continue for at least a while: Guidance for the current quarter calls for non-GAAP EPS of $0.32 to $0.41, below the consensus estimate of $0.45 and year-earlier figure of $0.42.
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