ASPOCOMP’S INTERIM REPORT JANUARY 1 – JUNE 30, 2015

Aspocomp Group Plc
Interim report

ASPOCOMP’S INTERIM REPORT JANUARY 1 – JUNE 30, 2015

Espoo, Finland, 2015-08-20 08:00 CEST (GLOBE NEWSWIRE) —

Aspocomp Group Plc, Interim Report, August 20, 2015 at 9:00 a.m.

Key figures 1-6/2015 in brief

– Net sales: EUR 8.9 million (EUR 12.1 million 1-6/2014)
– Operating result before depreciation (EBITDA): EUR 0.2 million (0.9)
– Operating result excluding non-recurring items (EBIT): EUR -0.2 million (0.2)
– Earnings per share (EPS): EUR -0.06 (0.00)
– Operational cash flow: EUR 0.2 million (-1.6)

In 2015, net sales are expected to be between EUR 18 and 20 million and operating result excluding non-recurring items between EUR -0.7 and 0.5 million.

CEO’S REVIEW

“Net sales amounted to EUR 8.9 million for the review period, down EUR 3.1 million compared to the reference period of the previous year. Demand from our three major customers was clearly weaker than expected, with a year-on-year decline of EUR 4.5 million in deliveries. The other customers’ level of demand has evolved according to the strategy and increased by about 30 percent (EUR 1.3 million) compared to the reference period.

The expansion of the customer base has also developed as planned. Our goal is to build up a clearly broader customer base over the current and the coming year so that individual customers’ demand variations and cycles will not have such a strong impact on the company’s net sales and result.

The operating result excluding non-recurring items for the review period was EUR 0.2 million in the red due to low delivery volumes. The company will record additional non-recurring expenses of approximately EUR 0.2 million on the closure of the Teuva plant; the previous EUR 1.5 million reserve was exceeded by approximately EUR 0.2 million, mainly as regards employee termination expenses. The operating result for the review period was approximately EUR 0.4 million in the red.

Strong cash flow during the second quarter, EUR 0.7 million, lifted operational cash flow for the review period into the black to EUR 0.2 million, while a year earlier it was EUR 1.6 million in the red.

Sales are not expected to increase until the fourth quarter, as deliveries to major customers are expected to grow and return back to normal from September onwards.”

NET SALES AND EARNINGS 1-6/2015

Net sales amounted to EUR 8.9 million, a year-on-year decrease of 26 percent. The five largest customers accounted for 47 percent of net sales (68% 1-6/2014). In geographical terms, 94 percent of net sales were generated in Europe (88%), 5 percent in Asia (12%) and 1 percent in North America (0%).

Sales decreased by EUR 3.1 million compared to the reference period of the previous year. Demand from the company’s three major customers fell EUR 4.5 million short of the reference period. That said, deliveries to other customers saw year-on-year growth of EUR 1.3 million.

Sales are not expected to increase until the fourth quarter, as deliveries to major customers are expected to grow and return back to normal from September onwards.

First-half operating result was EUR -0.4 million (EUR 0.1 million 1-6/2014) including non-recurring items. Operating result excluding non-recurring items was EUR -0.2 million (EUR 0.2 million 1-6/2014).

The company will record additional non-recurring expenses of approximately EUR 0.2 million on the closure of the Teuva plant; the previous EUR 1.5 million reserve was exceeded by approximately EUR 0.2 million, mainly as regards employee termination expenses.

Net financial expenses for the review period amounted to EUR 0.0 million (EUR 0.0 million). Earnings per share were EUR -0.06 (EUR 0.00).

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 2015, net sales are expected to be between EUR 18 and 20 million and operating result excluding non-recurring items between EUR -0.7 and 0.5 million.

PUBLICATION OF FINANCIAL RELEASES

This stock exchange release is a summary of the Aspocomp Group’s Interim Report January 1 – June 30, 2015 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

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

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

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.