LEOBEN, AUSTRIA -- AT&S saw first-quarter revenues rise 14% year-over-year as new smartphone models and product launches offset declining sales of some mobile devices.

The printed circuit board fabricator posted sales of about EUR 126 million ($153 million), up 16 million euros from last year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 17% to 21 million euros. Net income fell to 520,000 euros, down from 2.06 million euros last year.

"The first quarter was shaped by a series of events in the Mobile Devices segment," CEO Andreas Gerstenmayer said in a statement. "The introduction of new models, delayed product launches and decrease in sales experienced by some of our customers resulted in short-term capacity underutilization at our plant in Shanghai. However, the situation eased in the first few weeks of July. Shanghai is ramping up again, the loading factor increases. We are still anticipating year-on-year improvements in revenues and profits, subject to stable macroeconomic conditions."

Mobile Devices' sales for the quarter were up on the same period last year. However, product launches and delays in the introduction of new applications had a negative impact on production in Shanghai in the second half of the quarter, which was reflected in the EBIT margin. In light of the strong rebound in order intake in July, AT&S considers the first quarter as a transformation period. With new models coming to market, as well as the expansion of the customer base, capacity utilization in Shanghai is returning to anticipated levels.

Industrial and automotive business grew slightly, mainly as a result of strong demand for high-end PCBs for automotive. Demand from major customers in the industrial sector continues to be weak.

In recent months the demand for HDI rigid-flex printed circuit boards has risen. The first jointly series production has started in China, and further projects with major producers of smartphones and tablet PCs are in the pipeline.

Construction of a plant in Chongqing is progressing according to plan, AT&S added.

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Ed.: 1 euro = $1.21489