Aspocomp’s Net Sales Slightly Down in Q3

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Aspocomp Group Plc’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.

Key figures 7-9/2017 in brief

• Net sales: EUR 5.5 million (EUR 5.6 million 7-9/2016)
• EBITDA: EUR 0.4 million (0.4)
• Operating result: EUR 0.2 million (0.2)
• Earnings per share: EUR 0.02 (0.02)

Key figures 1-9/2017 in brief

• Net sales: EUR 16.8 million (EUR 15.0 million 1-9/2016)
• EBITDA: EUR 1.2 million (0.6)
• Operating result: EUR 0.4 million (-0.1)
• Earnings per share (EPS): EUR 0.06 (-0.03)
• Operational cash flow: EUR 1.1 million (-0.3)
• Order book at the end of period: EUR 2.3 million (1.8)

CEO’S Review

“Third-quarter net sales amounted to EUR 5.5 million (EUR 5.6 million 7-9/2016), representing a slight year-on-year decrease of approximately 1%. Volume production continued to see strong growth of about 20%. Demand for own production at the Oulu plant was weaker than in the previous year due to the timing of product development projects during the summer season.

Net sales for January-September increased by 12% and were EUR 1.7 million higher than a year earlier. Volume production contributes significantly to growth. It increased by over 30 percent compared to the reference period.

The order book at the end of the review period was EUR 2.3 million (EUR 1.8 million 9/2016), representing a year-on-year increase of EUR 0.5 million.

The customer base continued to develop favorably and we expect that this development is closely in line with the cornerstones of the company's strategy. The share accounted for by the automotive industry continued to grow in terms of both net sales and the number of customers. In the case of new generation development projects in telecommunication networks, demand is expected to pick up during the fourth quarter or by the beginning of 2018 at the latest. In security and defense products, we see growing demand. In our new product segment, testing of semiconductor components, the customer base is on the rise, and some deliveries have already begun.

Third-quarter operating result amounted to EUR 0.2 million (EUR 0.2 million 7-9/2016) and was at the same level as a year earlier. The operating result for January-September increased by EUR 0.5 million compared to the previous year.

Cash flow amounted to EUR 1.1 million (EUR -0.3 M€), representing a year-on-year increase of EUR 1.4 million.”

Net Sales and Earnings

July-September 2017

Third-quarter net sales amounted to EUR 5.5 million (EUR 5.6 million 7-9/2016), a year-on-year decrease of 1%. Volume production continued to see strong growth of about 20 percent in the third quarter. Due to the timing of R&D projects during the summer months, demand for own production at the Oulu plant was lower than in the previous year.

Sales to automotive industry customers continued to grow and we also gained new customers in the third quarter. The customer base for the latest product segment, testing of semiconductor components, is growing, and some deliveries have already begun.

The five largest customers accounted for 55 percent of net sales (57% 7-9/2016). In geographical terms, 96 percent of net sales were generated in Europe (94%), 2 percent in Asia (4%) and 2 percent in North America (2%).

The operating result for the third quarter amounted to EUR 0.2 million (EUR 0.2 million 7-9/2016).

Net financial expenses for the third quarter amounted to EUR 0.0 million (EUR 0.0 million 7-9/2016). Earnings per share were EUR 0.02 (EUR 0.02).

The order book at the end of the review period was EUR 2.3 million (EUR 1.8 million 9/2016), representing a year-on-year increase of EUR 0.5 million.

January-September 2017

Net sales amounted to EUR 16.8 million (EUR 15.0 million 1-9/2016), a year-on-year increase of 12 percent.

Volume production increased by over 30 percent compared to the reference period.

The five largest customers accounted for 52 percent of net sales (52% 1-9/2016). In geographical terms, 97 percent of net sales were generated in Europe (92%), 1 percent in Asia (5%) and 2 percent in North America (3%).

Operating result amounted to EUR 0.4 million (EUR -0.1 million 1-9/2016), representing a year-on-year increase of EUR 0.5 million. The improvement in operating result was due to the growth in net sales.

Net financial expenses amounted to EUR 0.0 million (EUR 0.1 million). Earnings per share were EUR 0.06 (EUR -0.03).

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 percent 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 percent 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.

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