ESPOO, FINLAND – Aspocomp posted first quarter net sales of €6.7 million (US$7.3 million), down 12% year-over-year. Net sales decreased especially in the automotive and telecommunications segments.

The five largest customers accounted for 42% of net sales, compared to 58% during the same period of 2019. In geographical terms, 90% of net sales were generated in Europe, compared to 98% in the first quarter last year.

EBITDA was $0, down 104% year-over-year. Orders grew 67% compared to the same period in 2019. The order book at the end of the first quarter was €5.6 million, up 64.7% year-over-year.

First quarter cash flow from operations amounted to €400,000, compared to $2.2 million in the first quarter last year.

The outbreak of the coronavirus pandemic will affect the availability and delivery times of the PCBs purchased by Aspocomp from China. The coronavirus pandemic is also having a profound impact on the supply chains of the electronics industry and on customer orders. The European car industry is in an especially difficult position. Due to the major uncertainties and growth in risks related to both customer demand and component availability, the outlook for 2020 involves a significantly higher risk than normal.

The company’s full-year guidance remains unchanged. Aspocomp estimates net sales and operating result for 2020 will be at the same level as 2019. In 2019, net sales amounted to €31.2 million, and the operating result was €3.4 million.

“Net sales for the first quarter weakened significantly in the supply chains of the electronics industry due to disruptions caused by the coronavirus pandemic,” said CEO Mikko Montonen. “Demand soon recovered a robust level already in March, but this in itself was not enough to compensate for weak profitability at the beginning of the year, and the operating result remained unprofitable.

“Exceptional circumstances hinder customers’ production, and some factories are closed or underutilized. The European car industry is in a particularly difficult position, with several production plants being shut down. There are intermittent restrictions and delays in the availability of raw materials and components. Similarly, transport of consumables and end products is significantly slower and more expensive than before.

“Despite a strong order book, our assessment of future developments includes exceptionally high uncertainty due to the coronavirus pandemic and its negative impact on the economy. Customer demand, operating conditions and requirements may weaken or fluctuate very rapidly. In spite of the major uncertainties and growth in risks, we estimate 2020 sales and operating result will be at the previous year’s level.”

Ed.: €1 = US$1.08

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