Aspocomp's Sales Growth Continued in Q2

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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

“Sales growth continued in the second quarter. Net sales amounted to EUR 5.6 million (EUR 5.3 million 4-6/2016), representing a year-on-year increase of EUR 0.3 million or 5%.

Growth in net sales was driven largely by volume production in the second quarter, a year-on-year increase of approximately 55%. Similarly, deliveries of own production decreased slightly due to the timing of customer product development projects.

The strongest growth in the second quarter was generated by industrial electronics and automotive products. PCBs supplied to the security and defense industry as well as for use in semiconductor component testing were also on the rise. In telecommunication infrastructure, demand fell slightly.

First-half growth increased to 19%, with sales value of EUR 11.3 million (EUR 9.5 million 1-6/2016).

Second-quarter operating result amounted to EUR 0.1 million (EUR 0.2 million 4-6/2016). The operating result was particularly affected by fluctuations in demand in own production and by higher-than-usual maintenance costs in June. First-half operating result rose to EUR 0.3 million (EUR -0.3 million 1-6/2016).

Cash flow remained strong as the amount of tied-up working capital decreased and in the first half of the year amounted to EUR 1.1 million (EUR -0.2 million).

Customer acquisition continued to be positive in the first part of the year. The company has received several valuation orders and supplier approvals from new major customer.

The company's order book increased by 9 percent from the previous quarter and was at the same level of EUR 2.4 million as a year earlier. The order book is expected to support the positive trend in net sales and operating profit during the rest of the year.”

April-June 2017

• Second-quarter net sales amounted to EUR 5.6 million (EUR 5.3 million 4-6/2016), a year-on-year increase of 5%. Demand for PCBs was concentrated on volume production in the second quarter. Due to the timing of customer product development projects, deliveries of own production decreased slightly.
• The strongest growth was generated by industrial electronics and automotive products. Growth was also seen in sales of PCBs to the security and defense industry as well as for use in semiconductor component testing. Deliveries to telecommunication infrastructure customers decreased slightly.
• The five largest customers accounted for 51% of net sales (52% 4-6/2016). In geographical terms, 96% of net sales were generated in Europe (92%), 1% in Asia (6%) and 3% in North America (2%).
• The operating result for the second quarter amounted to EUR 0.1 million (EUR 0.2 million 4-6/2016). Seasonal fluctuations in demand in own production and the Oulu plant’s higher-than-usual maintenance costs reduced operating profit.
• Net financial expenses for the review period amounted to EUR 0.0 million (EUR 0.0 million). Earnings per share were EUR 0.01 (EUR 0.02).

First Half of 2017

• First-half net sales amounted to EUR 11.3 million (EUR 9.5 million 1-6/2016), a year-on-year increase of 19%.
• The five largest customers accounted for 51% of net sales (50% 1-6/2016). In geographical terms, 97% of net sales were generated in Europe (90%), 1% in Asia (6%) and 2% in North America (4%).
• First-half operating result amounted to EUR 0.3 million (EUR -0.3 million 1-6/2016).
• Net financial expenses amounted to EUR 0.0 million (EUR 0.0 million). Earnings per share were EUR 0.04 (EUR -0.05).

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 – a service company specializing in PCB technologies

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.