Aspocomp Posts 17% Sales Increase in January-September 2018

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In 2018, net sales are expected to grow approximately 15% compared with 2017 and the operating result to be approximately EUR 2 million (Company Announcement, October 16, 2018). In 2017, net sales amounted to EUR 23.9 million and the operating result to EUR 0.8 million.

Key Figures 7-9/2018

• Net sales: EUR 6.7 million (EUR 6.0 million)
• EBITDA: EUR 0.9 million (0.4)
• Operating result: EUR 0.6 million (0.1)
• Earnings per share: EUR 0.08 (0.01)

Key Figures 1-9/2018  

• Net sales: EUR 20.6 million (EUR 17.6 million)
• EBITDA: EUR 2.5 million (1.2)
• Operating result: EUR 1.6 million (0.4)
• Earnings per share: EUR 0.23 (0.06)
• Operational cash flow: EUR 2.4 million (1.1)
• Order book at the end of period: EUR 2.8 million (2.3)

CEO’S Review

“In July-August, sales remained stable despite the summer season. Customer demand turned to strong growth in September and is expected to remain robust throughout the rest of the year. Third-quarter net sales amounted to EUR 6.7 million, a year-on-year increase of 12%. Net sales for the first three quarters increased by 17% compared to last year’s reference period, amounting to EUR 20.6 million.

The customer segment that generated the strongest growth was the telecommunications network segment, boosted particularly by next-generation 5G technology development projects. Through its products and services, the company supports the development and commercialization phase of several leading technology companies’ 5G products. The automotive industry and semiconductor testing segments saw good steady growth, too. The order book at the end of September amounted to EUR 2.8 million, a year-on-year increase of EUR 0.5 million.

The operating result for July-September grew to EUR 0.6 million, representing approximately 8.5% of net sales. For the first nine months of the year, operating result amounted to EUR 1.6 million, representing approximately 8% of net sales. Profitability has developed very favorably over the year as new technologies have raised the average value of the products.

Cash flow from operations grew to EUR 2.4 million due to a decline in committed working capital to the same level as at the end of 2017.”

Net Sales and Earnings

July-September 2018

Third-quarter net sales amounted to EUR 6.7 million (EUR 6.0 million), a year-on-year increase of 12%. Sales remained stable in July-August and swung to strong growth in September. Growth was boosted particularly by the telecommunications network segment, but the automotive industry and semiconductor testing segments saw good steady growth, too.

The five largest customers accounted for 54% of net sales (55%). In geographical terms, 98% of net sales were generated in Europe (96%), 1% in Asia (2%) and 1% in North America (2%).

The operating result for the third quarter amounted to EUR 0.6 million (EUR 0.1 million). Third-quarter operating result was 8.5% of net sales. The operating result improved significantly as new technologies have raised the average added value of the products.

Net financial expenses amounted to EUR 0.0 million (EUR 0.0 million). Earnings per share were EUR 0.08 (EUR 0.01).

The order book at the end of the review period was EUR 2.8 million (EUR 2.3 million), representing a year-on-year increase of about EUR 0.5 million.

January-September 2018

Net sales amounted to EUR 20.6 million (EUR 17.6 million), a year-on-year increase of 16.9%.

The five largest customers accounted for 52% of net sales (52%). In geographical terms, 97% of net sales were generated in Europe (97%), 1% in Asia (1%) and 2% in North America (2%).

Operating result amounted to EUR 1.6 million (EUR 0.4 million). Profitability developed very favorably during January-September, mainly because new technologies raised the average value of the products.

Net financial expenses amounted to EUR 0.1 million (EUR 0.0 million). Earnings per share were EUR 0.23 (EUR 0.06).

Outlook for the Future

In 2018, net sales are expected to grow approximately 15% compared with 2017 and the operating result to be approximately EUR 2 million (Company Announcement, October 16, 2018). In 2017, net sales amounted to EUR 23.9 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.

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