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

Aspocomp Group Plc
Interim report

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

Espoo, Finland, 2014-10-23 08:00 CEST (GLOBE NEWSWIRE) —

Aspocomp Group Plc, Interim Report, October 23, 2014 at 9:00 a.m.

Key figures 1-9/2014 in brief

– Net sales: EUR 16.9 million (EUR 14.9 million 1-9/2013)
– Operating result before depreciation (EBITDA): EUR 0.8 million (0.9)
– Operating profit excluding non-recurring items (EBIT): EUR -0.2 million (-1.1)
– Earnings per share (EPS): EUR -0.06 (-0.04)
– Operational cash flow: EUR -0.5 million (0.3)

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:

“Deliveries slowed down significantly in July-September, and third-quarter net sales amounted to EUR 4.9 million, a year-on-year decrease of EUR 0.3 million. Sales decreased mainly because telecommunication customers had placed overlarge orders at the beginning of the year. In other respects, both the circuit board market and demand remained at a reasonable level.

Net sales for the review period amounted to EUR 16.9 million, a year-on-year increase of EUR 2.0 million. Operating profit excluding non-recurring items increased by EUR 0.9 million and amounted to EUR -0.2 million in the review period. In July-September, cash flow from operations turned clearly positive and amounted to EUR 1.1 million.

Aspocomp’s performance in acquiring new customers has remained strong. New customers and deliveries to them bring additional sales, but do not as yet sufficiently offset the sudden demand fluctuations of large individual customers. One of the main focuses of Aspocomp’s new strategy is a major expansion of the customer base in order to reduce our dependence on individual customers and market segments. Our goal is to build a more diversified and demand-stable customer base over the next two years.

Under the renewed strategy, Aspocomp focuses on improved services and closer cooperation with customers. We strive to make every effort to facilitate and assist our customers with technology solutions and printed circuit board supplies by utilizing cost-effective and competitive high-volume production lines in Asia. We also provide strong support to our customers with their product development and new product ramp-up. High-speed design, short lead times, flexible production and customized products are characteristic features of R&D series. These products will be delivered mainly from Finland, where we will continue to develop and maintain the latest and the most demanding production technology.

As a part of its new strategy, Aspocomp will look into combining production and development activities in Finland as well as the possible closing of the Teuva plant. Combining production and development would significantly enhance capacity utilization, and simplify the company’s internal processes. The company expects that combining will yield annual savings of approximately EUR 0.9 million.”

NET SALES AND EARNINGS 1-9/2014

Net sales amounted to EUR 16.9 million, a year-on-year increase of 13 percent. The five largest customers accounted for 66 percent of net sales (66% 1-9/2013). In geographical terms, 88 percent of net sales were generated in Europe (88%), 11 percent in Asia (12%) and 1 percent in North America (0%).

Net sales saw strong growth in the first half of the year, but began to decline in July, mainly because telecommunication customers had placed overlarge orders at the beginning of the year.

The operating result was EUR -0.3 million (EUR -0.2 million 1-9/2013) including non-recurring items. Operating profit excluding non-recurring items was EUR -0.2 million, a year-on-year increase of EUR 0.9 million.

Net financial expenses for the review period amounted to EUR 0.0 million (EUR 0.0 million 1-9/2013). Earnings per share were EUR -0.06 (EUR -0.04).

THE GROUP’S KEY FIGURES

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 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 – September 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, 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.