TORONTO – Firan Technology Group reported second quarter Circuits segment net sales down 35% year-over-year to $13.7 million. All sites were down, but the largest decline was seen at the Circuits Toronto plant, which is more heavily exposed to the commercial aerospace market.

On a year-to-date basis, net sales were $25 million, a decrease of 30.7% compared to the same period last year.

Net earnings for the Circuits segment were $1.1 million in the second quarter, down 71.1% year-over-year. Lower sales were the most significant impact on profitability. The stronger Canadian dollar also hurt results, as did some operational challenges such as the Circuits Toronto site being designated a Covid hotspot during the quarter, the impact of paid sick days being introduced in Ontario, and ongoing production challenges at the Chatsworth site.

FTG reported total second quarter sales down 24% year-over-year to $20.3 million. On a sequential basis, sales were up 6.4% compared to the same period in 2020. Year-to-date, total sales were $39.3 million, a decrease of 23.5% year-over-year.

FTG’s total net earnings after tax during the second quarter were $10,000, compared to over $2 million in the second quarter of 2020.

Second quarter bookings were up 8% year-over-year and 20% sequentially. The company’s second quarter book-to-bill ratio was 0.97:1.

FTG increased net cash on the balance sheet to $14.8 million, an increase of $1.4 million. During the past 18 months, FTG has generated $13 million in free cash flow, after investments in R&D and capital equipment.

FTG was approved for an additional $1.2 million in Canada Emergency Wage Subsidy in the quarter, which was used to help maintain the company’s workforce in the face of revenue reductions due to Covid-19.

During the quarter, FTG had new qualification opportunities for PCBs for a major US-headquartered EMS provider and a large new PCB and assembly opportunity from a large US defense contractor.

During the period, the firm completed installation of the Averatek semi-additive PCB manufacturing equipment at its Circuits Fredericksburg facility.

As of June 4, the company’s net working capital was $41.3 million, compared to $39.4 million at year-end in 2020. FTG ended the second quarter with $14.8 million in net cash, compared to $12.6 million at the end of 2020, and $13.4 million at the end of the first quarter 2021.

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