Aspocomp Posts 37% Sales Increase in Q1 2017

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Aspocomp Group Plc’s Key figures 1-3/2017 in brief

• Net sales: EUR 5.7 million (EUR 4.1 million 1-3/2016)
• Operating result before depreciation (EBITDA): EUR 0.5 million (-0.2)
• Operating result: EUR 0.2 million (-0.4)
• Earnings per share (EPS): EUR 0.03 (-0.07)
• Operational cash flow: EUR 0.7 million (-0.6)
• Order book at the end of period: EUR 2.2 million (1.4)

The company's full-year guidance remains unchanged. In 2017, net sales are expected to grow approximately 10% and the operating margin to be better than in 2016. In 2016, net sales amounted to EUR 21.6 million and the operating result was 3% of net sales.

CEO’s Review

“Growth continued to be strong in the first quarter, partly due to the weak comparison period a year ago. Net sales amounted to EUR 5.7 million (EUR 4.1 million 1-3/2016), representing a year-on-year increase of EUR 1.5 million or 37%.

Demand for printed circuit boards decreased compared to the end of the previous year in line with typical seasonal variation. Demand slowdown was particularly evident in the telecommunication infrastructure and industrial electronics customer segments. The company's order book developed positively, growing by EUR 0.8 million from the previous year. The order book amounted to EUR 2.2 million (EUR 1.4 million) at the end of the review period. The order book has grown in step with the growth in volume production.

Operating result improved and amounted to EUR 0.2 million (EUR -0.4 million), a year-on-year increase of EUR 0.6 million or 3% of net sales. The increase in profitability was due to the significantly higher net sales compared to the comparison period a year ago. Cash flow from operations was EUR 0.7 million in the black, a year-on-year improvement of EUR 1.3 million.

Overall, the year has started in line with expectations. At the Capital Market Day in March, we announced our intention to expand our business into new geographic areas and new customer segments. One key objective is to shift the main focus of the company from products and technology to customer-centered service. According to the full-year guidance for 2017, net sales are expected to grow by approximately 10% and the operating margin to be better than last year.”

Net Sales and Earnings

January-March, 2017

First-quarter net sales amounted to EUR 5.7 million (EUR 4.1 million 1-3/2016), a year-on-year increase of 37%. Demand weakened during the first quarter compared to the previous quarter, as expected due to seasonal fluctuations. A slowdown in demand was particularly evident in the telecommunication infrastructure and industrial electronics customer segments.

The five largest customers accounted for 52% of net sales (51% 1-3/2016). In geographical terms, 98% of net sales were generated in Europe (88%), 1 percent in Asia (6%) and 1% in North America (6%).

The operating result for the first quarter amounted to EUR 0.2 million (EUR -0.4 million 1-3/2016). Growth in net sales resulted in a better operating result.

Net financial expenses for the review period amounted to EUR 0.0 million (EUR 0.0 million). Earnings per share were EUR 0.03 (EUR -0.07).

Outlook for The Future

A major share of Aspocomp’s net sales is generated by quick-turn deliveries and R&D series, and thus the company’s order book is short. The company's aim is to systematically expand its services to cover the PCB needs of customers over the entire life cycle and thereby balance out variations in demand and the order book.

The company's full-year guidance remains unchanged. In 2017, net sales are expected to grow approximately 10% and the operating margin to be better than in 2016. In 2016, net sales amounted to EUR 21.6 million and the operating result was 3% of net sales.

About Aspocomp  

Aspocomp specializes in demanding PCB technologies, serving its customers throughout the entire life cycle of a product. Aspocomp sells and manufactures PCBs and also provides related design and logistics services as well as technology solutions. Aspocomp creates value for its customers with unique products and solutions, strong manufacturing and technology expertise, as well as fast and reliable deliveries. A wide network of expert partners together with Aspocomp's own manufacturing enables its customers to cost-effectively buy their PCBs from a single provider over the entire life cycle of a product.

A printed circuit board (PCB) is the principal interconnection method in electronic devices. PCBs are used for electrical interconnection and as a component assembly platform in most electronic applications. Aspocomp's customers are companies that design and manufacture telecom systems and equipment, automotive and industrial electronics, security technology and semiconductor testing systems.