Aspocomp Reports Sales Growth in Q3

Estimated reading time: 4 minutes

Aspocomp Group Plc, Interim Report, October 28, 2016 at 9:00 a.m.

Key figures 7-9/2016 in brief

- Net sales: EUR 5.6 million (EUR 3.8 million 7-9/2015)
- EBITDA: EUR 0.4 million (-0.2)
- Operating result: EUR 0.2 million (-0.5)
- Earnings per share: EUR 0.02 (-0.08)

Key figures 1-9/2016 in brief

- Net sales: EUR 15.0 million (EUR 12.7 million 1-9/2015)
- EBITDA: EUR 0.6 million (0.0)
- Comparable operating result: EUR -0.1 million (-0.7)
- Operating result: EUR -0.1 million (-0.9)
- Earnings per share (EPS): EUR -0.03 (-0.14)
- Operational cash flow: EUR -0.3 million (0.2)
- Order book at the end of period: EUR 1.8 million (1.6)

The company’s full-year guidance remains unchanged. In 2016, net sales are expected to grow and the operating result to be in the black. In 2015, net sales amounted to EUR 17.5 million and the operating result to EUR -1.2 million.

CEO’S Review

“Aspocomp’s sales continued to see strong growth in the third quarter, driven by automotive industry customers and the German market. The automotive industry became the company’s largest customer group during the quarter, outperforming telecommunications. The R&D needs of telecommunication customers slowed down in July-August, as typical, but clear signs of improved demand were seen at the end of the third quarter. The company increased its sales successfully in all customer groups as compared to the previous year. In relative terms, growth was strongest in the automotive industry and the most moderate in telecommunications.

Aspocomp's sales in the third quarter increased by 47 percent compared to the previous year, amounting to EUR 5.6 million (EUR 3.8 million 7-9/2015). In January-September 2016, net sales increased by 18 percent compared with the corresponding period of 2015, reaching EUR 15.0 million (EUR 12.7 million).

Aspocomp's operating profit was EUR 0.2 million in the third quarter, while a year ago it was EUR 0.5 million in the red, an improvement of slightly over EUR 0.6 million. In January-September 2016, the operating result was still EUR 0.1 million in the red (EUR -0.9 million), despite the improvement.

Although sales developed very well, there was clearly room for improvement in the operating result. The most significant factors that influenced the result were the maintenance and device installation downtime at the Oulu plant in August as well as decreased demand for high technology printed circuit boards during the summer season, which weakened the product mix.

Aspocomp's customer base is expanding in accordance with the strategic plans, supporting the growth and stability of net sales. Optimization of the product portfolio and the improvement of profitability will play a key role after a sufficient and steady business volume is achieved.”

Net Sales and Earnings

July-September 2016
Third-quarter net sales amounted to EUR 5.6 million, a year-on-year increase of 47 percent. The five largest customers accounted for 57 percent of net sales (51% 7-9/2015). In geographical terms, 94 percent of net sales were generated in Europe (94%), 4 percent in Asia (4%) and 2 percent in North America (2%).

Sales continued to increase in the third quarter, driven by automotive industry customers and the German market. Compared to the corresponding quarter of the previous year, sales increased in all customer groups.

Although sales grew well, there was room for improvement in profitability. The most significant factors that influenced the result were the maintenance and device installation downtime at the Oulu plant in August as well as decreased demand for high technology printed circuit boards during the summer season, which weakened the product mix.

The operating result for the third quarter amounted to EUR 0.2 million (EUR -0.5 million 7-9/2015). Third-quarter comparable operating result was EUR 0.6 million higher than a year earlier. The total sum may deviate from the sum totals due to rounding up and down.

Net financial expenses for the third quarter amounted to EUR 0.0 million (EUR 0.0 million). Earnings per share were EUR 0.02 (EUR -0.08).

January-September 2016
Net sales amounted to EUR 15.0 million, a year-on-year increase of 18 percent.

The five largest customers accounted for 52 percent of net sales (47% 1-9/2015). In geographical terms, 92 percent of net sales were generated in Europe (94%), 5 percent in Asia (5%) and 3 percent in North America (1%).

Operating result amounted to EUR -0.1 million (EUR -0.9 million 1-9/2015). The comparable operating result was EUR -0.1 million (EUR -0.7 million 1-9/2015, including the Teuva plant's shutdown costs).

Net financial expenses amounted to EUR 0.1 million (EUR 0.1 million). Earnings per share were EUR -0.03 (EUR -0.14).

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 seeks 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 estimates that the pick-up in demand that started in February will continue and that the full year as a whole will be better than 2015. The company expects to grow particularly in the automotive industry, industrial electronics and different kinds of security applications. Furthermore, next-generation R&D projects are anticipated to generate growth in telecom equipment.

The company’s full-year guidance remains unchanged. In 2016, net sales are expected to grow and the operating result to be in the black. In 2015, net sales amounted to EUR 17.5 million and the operating result to EUR -1.2 million.

About Aspocomp – PCB technology company

Aspocomp develops and sells PCB manufacturing services, focusing on the end-to-end fulfillment of customers’ PCB needs. Our seasoned professionals help customers to create the most optimal PCB designs, both in terms of performance and cost. Our trimmed production lines produce the most challenging designs with the shortest lead-times in the industry. Operating as a service business, we provide one-stop access to technology solutions and competitive products for all PCB technologies.

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 PCBs are used in many applications, such as telecommunication networks and devices, automotive electronics, security and medical systems, chipset development and industrial automation.