Aspocomp records a 4% sales growth in Q1

The company says that growth in net sales was reduced by the adoption of the new IFRS standard at the beginning of the year. Excluding the effects of IFRS standard on consignment warehousing, net sales growth would have been 11%. This difference is due to changed timing in revenue recognition in consignment warehousing. Aspocomp’s five largest customers accounted for 45% of net sales (51% during the same quarter last year). In geographical terms, 96% of net sales were generated in Europe, 2% in Asia and 2% in North America. The operating result for the first quarter amounted to EUR 0.3 million (EUR 0.2 million during 1Q18) thanks to growth in net sales and higher factory utilisation, as well as the cost savings yielded by operational development programs. First-quarter operating result was 4.7% of net sales. The order book at the end of the review period was EUR 3.0 million (EUR 2.2 million), representing a year-on-year increase of about EUR 0.8 million. The order book was strengthened, especially in the telecommunications network and automotive industry segments. “Customer demand improved significantly toward the end of the first quarter and the order book grew to EUR 3.0 million. A pick-up is seen in a wide range of areas, especially in next-generation telecommunications networks and the automotive industry. Several technology companies and operators have announced early plans for 5G technology deployment. The development, testing and deployment phase of new technology is expected to generate significant demand in the next few months and years. In the automotive industry, the ongoing breakthrough in electronics also supports growing demand,” comments Mikko Montonen, President and CEO of Aspocomp.