CHANDLER, AZ -- Rogers today said first-quarter sales at its Advanced Connectivity Solutions unit, which sells materials for printed circuit boards, were down 6.5% from last year to $73.5 million.

The company attributed the drop to lower demand for wireless 4G LTE, portable electronics and satellite TV applications, partially offset by continued strength in demand for automotive advanced driver assistance systems (ADAS) revenues. First quarter 2018 net sales were favorably impacted by $1.8 million due to fluctuations in currency exchange rates.

Overall first quarter net sales were $214.6 million, up 5.3% from a year ago. Currency exchange rates favorably impacted sales by $9.4 million due to strengthening in the euro, renminbi and won.

The results were within previously company guidance of $208 million to $218 million,

Net income was $26.1 million, down from $27 million in 2017. Adjusted EBITDA was $41.4 million, versus $54.3 million last year.

Gross margin was 35.7%, down 370 basis points. Operating margin fell 470 basis points to 14.5%. Adjusted operating margin was 15.4%, compared to 22% in 2017.

"Strong growth in our Advanced Mobility markets, especially EV/HEV and ADAS, were highlights in the quarter," said Bruce D. Hoechner, president and CEO. "This strength was offset by lower demand in wireless infrastructure as the market transitions to 5G technology. Revenue mix and operational challenges largely in the Advanced Connectivity Solutions business were the primary factors contributing to our lower than anticipated margin performance during Q1. Our actions to resolve these operational issues, as well as the strong outlook in our key markets, give us confidence in our ability to achieve our 2020 objectives."

Rogers guided for second quarter net sales of $210 million to $220 million.

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