Investors / Governance / Risk Management / Business Risks

Assessment of short-term business risks

updated September 30, 2019

Dependence on key customers

Aspocomp’s customer base is concentrated; around half of sales are generated by a small number of key customers. This exposes the company to significant fluctuations in demand.

Market trends

Although Aspocomp is a marginal player in the global electronics market, changes in global PCB demand also have an impact on the company’s business. Competition for quick-turn deliveries and short production series accelerated as the market for PCBs weakened, and continues to have a negative impact on both total demand and market prices. Aspocomp’s main market area comprises Northern and Central Europe. In case Aspocomp’s clients would transfer their R&D and manufacturing out of Europe, demand for Aspocomp’s offerings might weaken significantly.

Availability of production materials

In the electronics supply chain, the availability of materials and delivery times vary, according to demand, for instance. Although stock availability, pre-orders, or merchant stock are used to anticipate changes in material availability, temporary impairment of material availability may cause delays or decreases in PCB deliveries. These impacts may be felt particularly in quick-turn deliveries. 

 

 

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