Aspocomp Posts Sales Drop in 2015

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 Key figures 2015 in brief

• Net sales: EUR 17.5 million (EUR 21.0 million 1-12/2014)
• Operating result before depreciation (EBITDA): EUR 0.0 million (-0.3)
• Operating profit excluding non-recurring items (EBIT): EUR -0.9 million (-0.4)
• Operating profit (EBIT): -1.2 M€ (-2.0)
• Earnings per share (EPS): EUR -0.16 (-0.31)
• Operational cash flow: EUR -0.1 million (-0.1)

Key figures 10-12/2015 in brief

• Net sales: EUR 4.8 million (EUR 4.1 million 10-12/2014)
• Operating result before depreciation (EBITDA): EUR -0.1 million (-1.1)
• Operating profit excluding non-recurring items: -0.3 M€ (-0.3)
• Operating profit (EBIT): EUR -0.3 million (-1.6)
• Earnings per share (EPS): EUR -0.01 (-0.25)

In 2016, net sales are expected to grow and the operating result to be in the black. In 2015, net sales amounted to EUR 17.5 million and the operating result to EUR -1.2 million.

CEO’S REVIEW:

“Full-year net sales decreased from the previous year by EUR 3.5 million and amounted to EUR 17.5 million. Net sales decreased due to weaker demand from certain major customers and their cyclical buying behavior. Sales to the five largest customers decreased by about EUR 5 million. Sales to other customers saw a year-on-year increase of 17 percent.

During the review year, the highest net sales were seen in October-December, EUR 4.8 million, with a clear year-on-year increase of EUR 0.7 million. However, fourth-quarter net sales fell significantly short of expectations as demand and order intake slowed down sharply in December.

The company's strategic goal is to build up a broader and more diversified customer base so that variations in projects and demand from individual customers will not have such a strong impact on the company's net sales and profitability. Although the structural overhaul progressed well during the review year, it has not as yet had a sufficiently great impact on net sales. Approval and ramp-up processes for new customers and their products are long, typically lasting from one to three years.

Operating result excluding non-recurring items in 2015 was EUR 0.9 million in the red, mainly due to low net sales. The result in 2015 was also burdened by the Oulu plant's variable load and the ramp-up costs of the closed Teuva plant's products. The fourth-quarter operating result excluding non-recurring items was EUR 0.3 million in the red due to a sharp slowdown in demand.

Globally, the printed circuit board market is not expected to grow in 2016 (Custer Consulting, January 2016). Slower demand for consumer electronics, particularly smart phones and other media devices, casts a shadow on the beginning of the year. Aspocomp's printed circuit boards are not used in consumer electronics products in significant numbers, but the PCB overcapacity situation in the early part of the year might also affect other product areas due to intensified competition.

The company expects that its overall performance in 2016 will be better in every aspect than in the previous year. Aspocomp is seeking sales growth, particularly in the automotive industry, industrial electronics and various types of security applications, such as security cameras and separate or government networks. Product development of the next generation of telecommunication devices is expected to increase demand during the year.”

Net Sales and Earnings 1-12/2015

Net sales amounted to EUR 17.5 million, a year-on-year decrease of 17 percent. Net sales decreased due to weaker demand from a few major customers. Otherwise, sales and the expansion of the customer base developed positively, with sales increasing by 17 percent.

The five largest customers accounted for 47 percent of net sales (63% 1-12/2014). In geographical terms, 93 percent of net sales were generated in Europe (89%), 5 percent in Asia (10%) and 2 percent in North America (1%).

The operating result was EUR -1.2 million (EUR -2.0 million 1-12/2014) including non-recurring items. Operating result excluding non-recurring items was EUR -0.9 million (EUR -0.4 million 1-12/2014).

Net financial expenses for the review period amounted to EUR 0.1 million (EUR 0.1 million 1-12/2014). Earnings per share were EUR -0.16 (EUR -0.31).

Outlook for the Future

As Aspocomp’s business is still dependent on prototypes and quick-turn deliveries, the company’s order book is very short. As a result, business development is difficult to predict and result forecasts involve significant uncertainties.

In 2016, net sales are expected to grow and the operating result to be in the black. In 2015, net sales amounted to EUR 17.5 million and the operating result to EUR -1.2 million

Board of Directors’ Dividend Proposal and Annual General Meeting

The Board of Directors will propose to the Annual General Meeting to be held on April 7, 2016, that no dividend be paid for the financial year January 1, 2015 – December 31, 2015 and that the parent company’s loss, EUR 2,515,231.32, be transferred to the retained earnings account. The parent company’s distributable funds total approximately EUR 8.2 million.

About Aspocomp  

Aspocomp develops and sells PCB manufacturing services, focusing on the end-to-end fulfillment of customers’ PCB needs. Our seasoned professionals help customers to create the most optimal PCB designs, both in terms of performance and cost. Our trimmed production lines produce the most challenging designs with the shortest lead-times in the industry. Operating as a service business, we provide one-stop access to technology solutions and competitive products for all PCB technologies.

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 PCBs are used in many applications, such as telecommunication networks and devices, automotive electronics, security and medical systems, chipset development and industrial automation.