Aspocomp Posts Half-Year Financial Report 2019

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The company's full-year guidance remains unchanged. In 2019, net sales are expected to grow approximately 10% compared with 2018 and the operating result to be better than in 2018. In 2018, net sales amounted to EUR 29.1 million and the operating result to EUR 2.9 million.

CEO’s Review

“Demand was strong in the second quarter. Second-quarter net sales amounted to EUR 8.7 million, a year-on-year increase of 13%. Net sales in the first half of the year increased by 18% compared to last year’s reference period, amounting to EUR 16.3 million.

As expected, the telecommunications network segment generated the greatest growth in the first half of the year, driven by the 5G market. Strong growth also continued in both the industrial electronics segment and the semiconductor testing segment. Demand in the automotive industry segment remained almost at the previous year’s level. In the security and defense segment, demand decreased clearly.

The order book rose to EUR 4.0 million. The ongoing trade war and global economic uncertainty make it difficult to forecast customer demand for the rest of the year. Forecasts are made for a shorter timeframe and estimates vary more widely than before.

Overall, the entire global PCB market was slightly down by about 0.5% in the first half of the year (Custer Consulting, July 2019).

Second-quarter operating result improved substantially and amounted to EUR 1.4 million. Second-quarter operating result was 16% of net sales. The major factors behind the rise in profitability were the growth of production and sales volume and the greater share accounted for by more technologically demanding products. Operating profit for the first half of the year amounted to EUR 2.3 million, representing 14% of net sales. Cash flow from operating activities was EUR 2.7 million in the first half of 2019, a year-on-year increase of EUR 2 million.

The conductor patterns etching line included in the investment program went into the testing and deployment phase. This equipment enables new cost-effective and faster manufacturing technology for more demanding PCBs.”

Net Sales and Earnings

April-June 2019

Second-quarter net sales amounted to EUR 8.7 (7.7) million, a year-on-year increase of 13%.

The five largest customers accounted for 58 (56)% of net sales. In geographical terms, 98 (96)% of net sales were generated in Europe, 1 (2)% in Asia and 1 (2)% in North America.

The operating result for the second quarter improved substantially and amounted to EUR 1.4 (0.8) million. Second-quarter operating result was 16.3 (10.2)% of net sales. The growth of production and sales volume and the greater share accounted for by more technologically demanding products were the major factors behind the rise in profitability.

Net financial expenses amounted to EUR 0.1 (0.0) million. Earnings per share were EUR 0.20 (0.12).

The order book at the end of the review period was EUR 4.0 (3.1) million, representing a year-on-year increase of EUR 0.9 million.

January-June 2019

First-half net sales amounted to EUR 16.3 million (EUR 13.8 million), a year-on-year increase of 18%. The largest growth in net sales was generated by the telecommunications network segment, driven by the 5G market. In addition, strong growth continued in both the industrial electronics segment and the semiconductor testing segment. Demand in the automotive industry segment remained almost at the previous year’s level. In the security and defense segment, demand decreased clearly.

The five largest customers accounted for 51% of net sales (51%). In geographical terms, 96% of net sales were generated in Europe (96%), 2% in Asia (2%) and 2% in North America (2%).

First-half operating result amounted to EUR 2.3 million (EUR 1.1 million). The positive development of the operating result was mainly due to growth in production and sales volume as well as the focus on more demanding PCBs in the product mix.

Net financial expenses amounted to EUR 0.1 million (EUR 0.0 million). Earnings per share were EUR 0.33 (EUR 0.15).

About Aspocomp  

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.