LEOBEN, AUSTRIA – AT&S reported a 0.3% rise in fiscal first quarter revenue to €222.7 million as higher demand for printed circuit boards for IC substrates and medical electronics offset lower orders for mobile devices and industrial products.

Earnings for the period ended Jun. 30 declined. The net loss was €6.2 million, down from a profit of €13.5 million. EBITDA dropped 33% year-over-year to €34.9 million and EBITDA margin falling 770 basis points to 15.7%. EBIT fell to -€600,000 from €18.3 million the previous year.

AT&S cited the overall market and substantial investments in the business for the loss. Mobile devices faced increased seasonality in the past two quarters, and automotive and industrial business slowed, reflecting the general economic situation.

AT&S is increasing investments in research & development to prepare for future technology and to pursue its modularization strategy. To strengthen its IC substrate business, the company launched a five-year, €1 billion expansion plan that will increase capacity at its PCB fabrication sites in Chongqing, China, and Leoben. Production is scheduled to begin in 2021, with the first revenues expected in early 2022.

The investment project will be implemented in close cooperation with a leading semiconductor manufacturer, AT&S said.

“In line with the industry, we assume that the market for high-performance computer modules will grow strongly in the coming years. The strategy to massively support the trend of modularization addresses many applications in the electronics industry and consequently also the area of microprocessors,” Andreas Gerstenmayer, CEO, AT&S.

AT&S guided for flat full year revenue, with an EBITDA margin of 20% to 25%. The company now expects revenue to double to €2 billion in the next five years, a hike over previous revenue guidance of €1.5 billion).

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