HELSINKI – Weak handset sales is not helping struggling Aspocomp, who fabricate handset PCBs for Nokia. The company indicate that first quarter sales were down for the Oulu and Thailand locations 17% to 10.1 million euros. The 2008 sales are expected to be 40 million euros, with no anticipated rebound in sales levels. This week, CEO, Isto Hantila said, “The financial situation of the Thai company remains critical and the risk of a liquidity crisis is very high.”

Last year Aspocomp sold its business in China and India, and 10% of its Oulu subsidiary in Finland to a joint venture with Hong Kong's Meadville Holdings Limited. Aspocomp retained a 20% stake in the China and India businesses. 

Aspocomp said it reached a breakeven level in operating profit in the first-quarter, compared with a loss of 1.4 million euros ($2.2 million) a year ago. Net debt is currently at 38.9 million euros through the end of March. Aspocomp reported a lower operating cost, that will improve EBITDA on sales for 2008.

"If Aspocomp does not obtain financing from Aspocomp Oulu Oy, or its associated company Meadville Aspocomp Holdings in the form of dividends or other income, or other ways of financing, to cover its expenses by 2013, the company may ultimately become insolvent," the firm said in a statement.