ASPOCOMP’S INTERIM REPORT JANUARY 1 – JUNE 30, 2014

Aspocomp Group Plc
Interim report

ASPOCOMP’S INTERIM REPORT JANUARY 1 – JUNE 30, 2014

Espoo, Finland, 2014-08-07 08:00 CEST (GLOBE NEWSWIRE) —

Aspocomp Group Plc, Interim Report, August 7, 2014 at 9:00 a.m.

Key figures 1-6/2014 in brief

– Net sales: EUR 12.1 million (EUR 9.8 million 1-6/2013)
– Operating result before depreciation (EBITDA): EUR 0.9 million (0.3)
– Operating profit excluding non-recurring items (EBIT): EUR 0.2 million (-1.3)
– Earnings per share (EPS): EUR 0.00 (-0.07)
– Operational cash flow: EUR -1.6 million (-0.0)

In 2014, net sales are expected to be between EUR 20 and 25 million and operating profit without one-time items between EUR -0.5 and 1.5 million.

COMMENTS BY MIKKO MONTONEN, PRESIDENT AND CEO:

“Due to strong demand in the first half of the year, both sales and operating profit increased significantly from the previous year. Sales reached EUR 12.1 million, an increase of EUR 2.3 million on the previous year, and operating profit improved by EUR 0.5 million to EUR 0.1 million. Excluding non-recurring items, the year-on-year improvement in operating profit amounted to as much as EUR 1.5 million.

The level of demand improved, particularly during March and April, when the order book doubled in a short period of time. However, order intake leveled off during the spring and returned to a lower level at the end of June. Second-quarter profitability was burdened by both the production overtime at the beginning of the review period and the lower load at the end of the review period, as well as investments in the customer interface.

Cash flow was weak, as expected, because growing sales tied up working capital, but it is expected to be clearly better in the next quarter.

Customer acquisition continued to be brisk during the spring. During the review period, the company won numerous new customers and obtained product approvals. The expanding customer base is expected to support sales by the end of the year, even though the majority of sales are still generated by a few key customers. The company’s main objectives during the second half of the year include increasing sales, especially in Central Europe and Sweden, as well as identifying opportunities in other market areas.”

NET SALES AND EARNINGS 1-6/2014

Net sales amounted to EUR 12.1 million, a year-on-year increase of 23 percent. The five largest customers accounted for 68 percent of net sales (64% 1-6/2013). In geographical terms, 88 percent of net sales were generated in Europe (87%) and 12 percent in Asia (13%).

Key customers’ demand increased sharply at the end of the first quarter, but leveled off during the second quarter when the order book returned to a lower level.

The operating result was EUR 0.1 million (EUR -0.4 million 1-6/2013).

First-half operating profit excluding non-recurring items was EUR 1.5 million higher than a year earlier. The 2013 first-half result was improved by a one-time item of approximately EUR 0.9 million, which is related to the former French subsidiary (see the company’s stock exchange release dated July 5, 2013).

Net financial expenses for the review period amounted to EUR 0.0 million (EUR 0.0 million 1-6/2013). Earnings per share were EUR 0.00 (EUR -0.07).

THE GROUP’S KEY FIGURES

OUTLOOK FOR THE FUTURE

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

In 2014, net sales are expected to be between EUR 20 and 25 million and operating profit without one-time items between EUR -0.5 and 1.5 million.

PUBLICATION OF FINANCIAL RELEASES

This stock exchange release is a summary of the Aspocomp Group’s Interim Report January 1 – June 30, 2014 and includes the most relevant information of the report. The complete report is attached to this release as a pdf file and is also available on the company’s website at www.aspocomp.com.

ASPOCOMP GROUP PLC
Board of Directors

Additional information:
For further information, please contact Mikko Montonen, CEO,
tel. +358 20 775 6860, mikko.montonen(at)aspocomp.com.

Distribution:
Nasdaq OMX Helsinki
Major media
www.aspocomp.com

Aspocomp – PCB technology company

Aspocomp develops and sells PCB manufacturing services. 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. Our volume supply services offer cost-efficient access to 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.