TTM Technologies (Nasdaq: TTMI), a maker of printed circuit boards, blasted up 43 percent, or 6.5 to 21.5. The company had priced its offering of 7.5 million shares at $16, above its range of $13 to $15, for trading Thursday.
The company's complex printed circuit boards are used in routers, switches, servers, computer memory modules and communications infrastructure equipment. TTM's customers include original equipment manufacturers, and their suppliers.
Like most companies going public, TTM is in the red; for the year ended December 31, net loss was $227,000 on sales of $78.53 million, as opposed to a profit of $8.43 million on sales of $106.45 million in 1998.
TTM is in a highly competitive industry, and the company said in its filings with the SEC that it expects increasing competition may result in price reductions, reduced gross margins and loss of market share. Its principal rivals include: Ddi (Nasdaq: DDIC); Hadco, which was recently bought by Sanmina (Nasdaq: SANM); Merix (Nasdaq: MERX); and Tyco (NYSE: TCM).
The shares are being offered through underwriters led by Robertson Stephens, Inc., Chase H&Q, Donaldson, Lufkin & Jenrette and First Union Securities, Inc.
Zengine began in 1999 as a division of Miami Computer Supply (now MCSi), which will still owns about 51 percent of the company following its IPO.
The company actually turned a profit for the last 6 months ended March 31; revenue was $1.35 million and net income was $173,173.
The company said in its filing with the SEC that it expects competition to intensify from e-commerce retailers who develop their own custom systems or engage consultants who install packaged software systems. Online retailers who have made large investments to develop custom systems may be less likely to adopt an outsourced transaction processing strategy. It also faces competition from companies such as Art Technology Group (Nasdaq: ARTG), Breakaway Solutions (Nasdaq: BWAY), Broadvision (Nasdaq: BVSN), E.piphany (Nasdaq: EPNY) and others.
Underwriters for the deal are William Blair & Company, Friedman, Billings, Ramsey & Co., Inc., E*Offering and Morgan, Keegan & Company, Inc.
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