On Nov. 1, quick-release printed circuit board maker TTM Technologies (NASDAQ:TTMI) released Q3 2006 earnings for the period ended Oct. 2.

  • Margins continued their improvement, and many hardware manufacturers would sell their CEO for 14% net margins.
  • Healthy cash flows went hand-in-hand with impressive net income growth and sales expansion. No wonder the balance sheet looks so clean.
  • That will of course change now, since the company spent $226 million to acquire the printed circuit board division of Tyco (NYSE:TYC). TTM took on $200 million of debt to finance that deal, and that will show up on the next quarterly balance sheet.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$76,000

$75,765.0

$60,979.0

24.2%

Net Profit

--

$10,523.0

$4,061.0

159.1%

EPS

$0.23

$0.25

$0.10

150%

Diluted Shares

42310.0

41726.0

1.4%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

29.67%

23.21%

6.46

Operating Margin

19.83%

9.75%

10.08

Net Margin

13.89%

6.66%

7.23

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$110,291.0

$71,139.0

55%

Accounts Rec.

$45,196.0

$39,317.0

15%

Inventory

$14,937.0

$11,774.0

26.9%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$13,709.0

$9,706.0

41.2%

Long-Term Debt

$0.0

$0.0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2006

Q3 2005

Change

Cash From Ops.

$11,700.0

$9,100.0

28.6%

Capital Expenditures

$3,000.0

$1,400.0

114.3%

Free Cash Flow

$8,700.0

$7,700.0

13%



Find out why Fools always follow the money.

Related companies:

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  • Eltek (NASDAQ:ELTK)

Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here .