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The company also will present non-GAAP financial information in this call. For a reconciliation of TTM's non-GAAP financial information to the equivalent measures under GAAP, please refer to the company's press release, which was filed with the SEC and which is posted on TTM's website. Participating on today's call are TTM's President and Chief Executive Officer, Kent Alder; TTM's CFO, Steve Richards; and Canice Chung, President of TTM's Asia Pacific business unit.I would now like to turn the call over to Mr. Alder. Please go ahead, Ken. Kenton K. Alder Okay. Thank you, Diane, and good afternoon. Thanks for joining us for our second quarter 2012 conference call. As usual, I'll begin with the review of the business, and then Steve will follow up with a discussion of our financial performance, and then we'll open the call for your questions. So first let's start with the review of the highlights for the quarter. Net sales were $327.4 million. GAAP net income attributable to stockholders was $7.4 million or $0.09 per diluted share. Non-GAAP net income was $13.6 million, $0.17 per diluted share. And gross margin was 16.7%. Our second quarter revenue was in line with our guidance for the quarter. However, unfavorable product mix, continued weak demand, particularly for our advanced technology printed circuit boards, and higher labor costs in Asia Pacific, negatively impacted our gross margin and net income for the quarter. During the second quarter, advanced HDI products declined as a part of our overall product mix, comprising approximately 23% of our Asia Pacific's revenue in the second quarter compared to 26% in the first quarter. The decline was primarily due to softer-than-expected sales of touchpad tablet printed circuit boards during the quarter. The multiple customer programs we have ramping in the third quarter, utilizing advanced HDI printed circuit board technology, gives us confidence that advanced HDI will resume growing as a percentage of our overall product mix in the third quarter.
Now I'd like to comment on the results of our operating segments for the second quarter, and then Steve can add the details later on in the call. The Asia Pacific segment had sales of $195.6 million in the second quarter, up from $171.8 million in the first quarter. Gross margins for Asia Pacific was 15.4% in the second quarter compared to 17.4% in the first quarter. The decline in gross margins was primarily due to 2 factors: higher labor costs due to salary and headcount increases and a lower-than-expected mix of advanced HDI printed circuit boards. Also, capacity utilization in Asia Pacific during the quarter was about 70% for our conventional printed circuit boards and approximately 75% for advanced HDI facilities. In the third quarter, we expect to operate at a similar level of utilization in our conventional printed circuit board facilities but at a higher level in our HDI facilities.In our North America segment, our performance -- we performed largely as expected and recorded second quarter sales of $132.3 million, up from $130 million in the first quarter. Gross margins in North America was 18.5% compared to 20.4% in the first quarter. This margin decline primarily reflects lower facility utilization in our conventional printed circuit board factories. Our capacity utilization percentage in North America was approximately 75% in the second quarter compared to 80% in the first quarter. And we expect our capacity utilization in North America to decrease further during the third quarter due to weakness primarily in the networking end market. On a year-over-year basis, second quarter sales in Asia Pacific declined 13.5% from $226.2 million in 2011. In North America, sales decreased approximately 7% from $142.2 million in 2011. Read the rest of this transcript for free on seekingalpha.com