AURORA, CO -- Advanced Circuits' revenues increased 3% year-over-year in the first quarter, driven primarily by continued strong performance in assembly sales.

First-quarter EBITDA margins were down about 180 basis points from a year ago period and by approximately 120 basis points sequentially, reflecting a shift in sales mix.

On a conference call with investors, the company said its outlook is stable, but defense programs remain under pressure and are holding down revenues.

The company CEO, Alan Offenberg, called Advanced Circuits a "good candidate" for add-on acquisitions. 

Advanced Circuits expects second quarter sales in line with the first quarter. "Quick turn, the preproduction type stuff that we deliver that is – that business has a little better outlook right now. But overall, it's a relatively stable business," said Elias Sabo, a partner in Compass Holdings, the parent company of Advanced Circuits.

The company, which operates three facilities in the US, reported revenues slipped 1.7% to $85.9 million in its fiscal 2014. Operating income slipped 1.7% to $22.5 million.