OULU, FINLAND – Aspocomp reported third quarter net sales were €9 million (US$10.4 million), up 54% year-over-year.

EBITDA was €1.5 million, up 185% compared to the same period last year. Operating income was €1 million, compared to €100,000 in the third quarter of 2020.

“Demand remained very strong throughout the third quarter, and the order book rose again to a new record of €15.8 million,” said CEO Mikko Montonen. “€9 million of the customer deliveries in the order book will be completed in the last quarter of this year, and the remaining approximately €7 million in 2022. The order book has grown significantly during the year, especially in the semiconductor industry and automotive customer segments. The delivery times of PCB production supplies are still very long, which helps bring forward orders placed by customers and thus extend the order book.

“All five of our customer segments saw substantial growth in the third quarter. The industrial electronics segment’s sales more than doubled to €2.2 million. The driver of growth is the pent-up demand on investment assets caused by the Covid-19 pandemic. The automotive customer segment’s net sales rose to €2.1 million, an increase of nearly 80%. This growth is mainly due to the supply chains of heavy transport equipment. The semiconductor customer segment’s net sales increased by a third to €2.1 million. Growth was boosted by investments in equipment manufacturers’ production capacity, which were initiated due to a component deficit. Sales in the security, defense and aerospace customer segment increased by 36% to €1.4 million. Growth was supported, among other things, by the positive development of demand in the new space market. During the quarter, Aspocomp received AS9100 certification. This important aviation quality certificate will expand our opportunities to become an increasingly prominent supplier in the industry. The telecommunication customer segment swung to growth of 20%, and its net sales amounted to €1.2 million. Customer R&D investments and new customers, especially in the 5G open run market, increased the segment’s demand.

“The strong and extended order book improves visibility, and demand is expected to remain positive, although there are still market problems with the availability of production materials and semiconductor components.”

For the first nine months of 2021, net sales grew 14% to €22.4 million. EBITDA was €2.4 million, up 111%.

For the remainder of 2021, Aspocomp expects demand to improve in all customer segments. However, the company says the global shortage of components may hinder positive developments.

Aspocomp reiterates full-year guidance, estimating net sales will increase, and operating income for 2021 will improve from 2020. In 2020, net sales were €25.6 million, and operating loss was €100,000.

Ed.: €1 = US$1.15