Aspocomp’s Revenue Down in Q1 due to Weak Demand

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Key figures 1-3/2016 in brief

• Net sales: EUR 4.1 million (EUR 4.6 million 1-3/2015)
• Operating result before depreciation (EBITDA): EUR -0.2 million (0.4)
• Operating result: EUR -0.4 million (0.1)
• Earnings per share (EPS): EUR -0.07 (0.02)
• Operational cash flow: EUR -0.6 million (-0.5)
• Order book at the end of period: EUR 1.4 million (1.3)

The company’s full-year guidance remains unchanged. 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

“The order intake started to decline rapidly at the end of last year, but we returned it to growth in February. Due to weak demand, first-quarter net sales amounted to only EUR 4.1 million, a year-on-year decrease of EUR 0.4 million. Very low sales in January pushed the first-quarter operating result EUR 0.4 million into the red. However, performance improved rapidly during the first quarter and the operating result turned positive in March as the order intake picked up and delivery volumes increased.

The company's order book is typically very short, only a few weeks, and is therefore exposed to rapid changes. We aim to systematically expand our customer base and customer segment in order to reduce fluctuations in overall demand.

The quality management system of the Oulu plant, which complies with the requirements of the automotive industry, was audited early this year. Quality certification is an important milestone in the realization of the strategy. It enables the Oulu plant to produce a wider product range for the automotive industry and thus complements our end-to-end service offering to our customers. The majority of Aspocomp’s automotive industry products are manufactured for the company at its partners' factories in Asia. We expect automotive industry customers to grow in the near future.

Despite the difficult early months of the year, the company expects net sales to grow and the operating result to be in the black in 2016.”

First-quarter net sales amounted to EUR 4.1 million (EUR 4.6 million 1-3/2015), a year-on-year decrease of 9 percent. The decline in net sales was due to weak demand in January.

The five largest customers accounted for 51 percent of net sales (50% 1-3/2015). In geographical terms, 88 percent of net sales were generated in Europe (95%), 6 percent in Asia (3%) and 6 percent in North America (2%).

The low net sales and weak operating result in January pushed the operating result for the entire first quarter into the red, EUR -0.4 million (EUR 0.1 million 1-3/2015).

Net financial expenses for the review period amounted to EUR -0.0 million (EUR 0.0 million). Earnings per share were EUR -0.07 (EUR 0.02).

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 seeks 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 estimates that the pick-up in demand that started in February will continue and that the full year as a whole will be better than 2015. The company expects to grow particularly in the automotive industry, industrial electronics and different kinds of security applications. Furthermore, next-generation R&D projects are anticipated to generate growth in telecom equipment.

The company’s full-year guidance remains unchanged. 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.

About Aspocomp – PCB technology company

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.