Aspocomp Continued to Perform Well in 2017

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In 2018, Aspocomp Group Plc’s net sales is expected to grow approximately 10% and the operating result to be better than in 2017. In 2017, net sales amounted to EUR 23.0 million and the operating result EUR 0.8 million.

Key Figures 10-12/2017

• Net sales: EUR 6.2 million (EUR 6.6 million 10-12/2016)
• EBITDA: EUR 0.6 million (1.1)
• Operating result: EUR 0.3 million (0.8)
• Earnings per share: EUR 0.12 (0.19)

Key Figures 2017

• Net sales: EUR 23.0 million (EUR 21.6 million 1-12/2016)
• EBITDA: EUR 1.8 million (1.8)
• Operating result: EUR 0.8 million (0.7)
• Earnings per share (EPS): EUR 0.18 (0.16)
• Operational cash flow: EUR 0.8 million (0.1)
• Order book at the end of period: EUR 2.5 million (2.4)
• The Board of Directors will propose that dividend of EUR 0.07 per share be paid (EUR 0.00 /2016)

CEO’s Review

“We continued to perform well in 2017, although we fell slightly short of our growth target of around 10%. We have succeeded very well in our main strategic objective of diversifying our business. Our net sales and profitability are no longer entirely dependent on individual customer relationships or customer segments. We have expanded into several customer segments and have increased our sales and activity in Central Europe, especially in Germany and the United Kingdom. The general economic recovery and the launch of investments were particularly evident in the industrial electronics customer segment, which saw the strongest growth. Last year, the sales of the security and defense electronics customer segment also developed strongly. In Aspocomp's latest customer segment, testing semiconductor components, we nearly triple our sales.

We posted our highest sales in the last quarter of the year, EUR 6.2 million (EUR 6.6 million 10-12/2016), but fell clearly short of the high sales in the reference period. January-December net sales amounted to EUR 23.0 million (EUR 21.6 million 1-12/2016), representing a year-on-year increase of 6.2%. Growth in net sales was slowed by the weakening of the US dollar. The comparable exchange rates had a negative impact of about EUR 0.17 million on net sales. The order book grew slightly and amounted to EUR 2.5 million at the end of the year (EUR 2.4 million 12/2016).

Fourth-quarter profitability fell behind the exceptionally strong reference period. The operating result for October-December amounted to EUR 0.3 million (EUR 0.8 million 10-12/2016). The full-year operating result grew by 10% to EUR 0.8 million (EUR 0.7 million 1-12/2016). The operating profit margin improved slightly and was 3.3% (3.2% 1-12/2016). Cash flow improved significantly from the previous year and amounted to EUR 0.8 million (EUR 0.1 million 1-12/2016).

Thanks to the EUR 10 million investment project to develop the company’s Oulu plant, which was announced in December, and the outsourcing of Asian volume production services, Aspocomp expects to grow significantly faster than the market at an average rate of 10% a year. The cornerstones of Aspocomp's growth include, for instance, next-generation 5G telecommunications and government networks, the e-revolution in the automotive industry, the development of testing requirements for semiconductor components as well as the spread of artificial intelligence and mechanical applications in the industry.”

Net Sales and Earnings

October-December 2017

Fourth-quarter net sales amounted to EUR 6.2 million, a year-on-year decrease of 6%.

The five largest customers accounted for 49% of net sales (62% 10-12/2016). In geographical terms, 95% of net sales were generated in Europe (97%), 2% in Asia (3%) and 3% in North America (1%).

The operating result for the fourth quarter amounted to EUR 0.3 million (EUR 0.8 million 10-12/2016). Fourth-quarter operating result was 6% of net sales.

Net financial expenses for the fourth quarter amounted to EUR 0.0 million (EUR 0.0 million 10-12/2016). Earnings per share were EUR 0.12 (EUR 0.19).

The order book at the end of the review period was EUR 2.5 million (EUR 2.4 million 12/2017), representing a year-on-year increase of about EUR 0.1 million.

Financial Year 2017

Net sales amounted to EUR 23.0 million (EUR 21.6 million 1-12/2016), a year-on-year increase of 6%. Net sales fell short of the expected growth of about 10%, due to the weakening of the US dollar and the delays in a major customer project in December 2017. The comparable exchange rates had a negative impact of EUR 0.17 million on net sales.

Growth was strongest in the industrial electronics customer segment. Strong development was also seen in sales of the security and defense electronics customer as well as testing semiconductor components segments.

The five largest customers accounted for 50% of net sales (53% 1-12/2016). In geographical terms, 96% of net sales were generated in Europe (93%), 2% in Asia (5%) and 2% in North America (2%).

Operating result amounted to EUR 0.8 million (EUR 0.7 million 1-12/2016), representing a year-on-year increase of EUR 0.1 million. The improvement in operating result was due to the growth in net sales.

Net financial expenses amounted to EUR 0.1 million (EUR 0.1 million). Earnings per share were EUR 0.18 (EUR 0.16).

Outlook for The Future 

In 2018, net sales are expected to grow approximately 10% and the operating result to be better than in 2017. In 2017, net sales amounted to EUR 23.0 million and the operating result to EUR 0.8 million.

The cornerstones of Aspocomp's growth include, for instance, next-generation 5G telecommunications and government networks, the e-revolution in the automotive industry, the development of testing requirements for semiconductor components as well as the spread of artificial intelligence and mechanical applications in the industry.

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.

About Aspocomp – a service company specializing in PCB technologies

A printed circuit board (PCB) is used for electrical interconnection and as a component assembly platform in electronic devices. Aspocomp provides PCB technology design, testing and logistics services over the entire lifecycle of a product. The company’s own production and extensive international partner network guarantee cost-effectiveness and reliable deliveries.

Aspocomp’s customers are companies that design and manufacture telecommunication systems and equipment, automotive and industrial electronics, and systems for testing semiconductor components for security technology. The company has customers around the world and most of its net sales are generated by exports.

Aspocomp is headquartered in Espoo and its plant is in Oulu, one of Finland’s major technology hubs. For more information, click here.