Some deals work out better than expected. The latest example of this comes from circuit board manufacturer TTM Technologies
The PCB group's operations carry inherently lower margins than TTM's traditional business, lacking quick-turn capabilities and introducing low-margin assembly to the otherwise exclusive board manufacturing company. But the improved reach to customers with deep pockets is more than making up for that, and that's even before realizing the opportunity to upsell quick-turnaround products to these new markets.
In other words, this was a great quarter, thanks to disciplined integration of the new business, but the future looks even brighter, as synergies start to develop between the combinations of customer lists and production capabilities.
That's especially true when you weigh in the impact of slow demand for high-end consumer gadgets, where TTM often supplies the circuitry on short notice. Among TTM's larger customers, you'll find cell phone makers Motorola
TTM has roses on both cheeks, and its market position looks strong. That's what a disciplined management team with a sharply focused business model can do, simply by taking that focus to the next level, as in this clear-sighted acquisition.