Aspocomp’s Net Sales Up 54% in January-September 2021


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Aspocomp releases its interim report for January-September 2021. Demand was record high, net sales grew by 54 percent and operating result improved clearly in the third quarter.

Outlook for 2021

Demand is expected to improve in all customer segments. However, a global shortage of components may hinder positive developments.

The company reiterates the full-year guidance that was announced on March 10, 2021. Aspocomp estimates that its net sales for 2021 will increase and its operating result for 2021 will improve from 2020. In 2020, net sales amounted to EUR 25.6 million and the operating result to EUR -0.1 million.

CEO’s Review

“Demand remained very strong throughout the third quarter and the order book rose again to a new record of EUR 15.8 million. EUR 9 million of the customer deliveries in the order book will be completed in the last quarter of this year and the remaining approximately EUR 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 to bring forward orders placed by customers and thus extend the order book.

Third-quarter net sales rose to EUR 9.0 million, up 54 percent from the comparison period. Net sales for January-September increased by 14 percent and amounted to EUR 22.4 million.

All five of our customer segments saw substantial growth in the third quarter. The Industrial Electronics segment’s sales more than doubled to EUR 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 EUR 2.1 million, an increase of nearly 80 percent. 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 EUR 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 percent to EUR1.4 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 percent and its net sales amounted to EUR 1.2 million. Customer R&D investments and new customers, especially in the 5G OPEN RUN market, increased the segment’s demand.

Profitability improved significantly from the first half of the year and the third-quarter operating profit rose to EUR 1.0 million, representing 11.5 percent of net sales. The operating result for January-September amounted to EUR 1.0 million, less than 5 percent of net sales. Operating profit increased in the third quarter mainly due to higher utilization rates and the emphasis of our product mix on the most technologically demanding PCBs. In January-September, the share of quick-turn deliveries remained below the pre-COVID-19 level, which hampered the positive development of profitability.

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.”

Impact of the COVID-19 Pandemic

The continued recovery in the general market situation had a positive effect on the company’s demand in the third quarter. Demand has grown, and the company’s order book level has risen significantly. The COVID-19 pandemic and the effects of related restrictions on supply chains in the electronics industry have been partially mitigated.

The company’s production at the Oulu plant has continued normally and delivery capacity has been reasonable. The company has continued to invest in new capacity and increased its product development investments in new products and more challenging technologies.

The pandemic has not affected the company’s liquidity. The cash situation has remained good and the credit facilities have not been used. The company has not identified any need to recognize write-downs of goodwill. 

Net Sales and Earnings

July-September 2021

Third-quarter net sales amounted to EUR 9.0 (5.9) million, a year-on-year increase of 54 percent. All five of our customer segments grew clearly in the third quarter and growth was strongest in the Industrial Electronics, Automotive and Semiconductor Industry segments. Demand remained very strong, and the order book rose during the third quarter from EUR 10.8 million to EUR 15.8 million.

The five largest customers accounted for 51 (45) percent of net sales. In geographical terms, 87 (85) percent of net sales were generated in Europe and 13 (15) percent on other continents.

The operating result for the third quarter amounted to EUR 1.0 (0.1) million. Operating profit increased in the third quarter mainly due to higher utilization rates and the emphasis of the product mix on the most technologically demanding PCBs. Third-quarter operating result was 11.5 (1.5) percent of net sales.

Net financial expenses amounted to EUR 0.0 (0.1) million. Earnings per share were EUR 0.15 (0.00).

January - September 2021

Net sales amounted to EUR 22.4 (19.7) million, a year-on-year increase of 14 percent. During January-September, all customer segments except the Telecommunications segment were growing. The strongest growth was seen in the Industrial Electronics and Automotive segments.

The five largest customers accounted for 46 (42) percent of net sales. In geographical terms, 86 (84) percent of net sales were generated in Europe and 14 (16) percent on other continents.

The operating result amounted to EUR 1.0 (-0.1) million. The operating result was 4.5 (-0.4) percent of net sales. Operating profit increased mainly due to higher utilization rates and the emphasis of the product mix on the most technologically demanding PCBs during the second and third quarter.

Net financial expenses amounted to EUR 0.0 (0.2) million, including a deferred exchange gain of EUR 0.1 million. Earnings per share were EUR 0.14 (-0.04).

The order book at the end of the review period was EUR 15.8 (4.1) million.

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