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CEO’s review

Demand was strong in the second quarter. Second-quarter net sales amounted to EUR 8.7 million, a year-on-year increase of 13 percent. Net sales in the first half of the year increased by 18 percent compared to last year’s reference period, amounting to EUR 16.3 million.

As expected, the telecommunications network segment generated the greatest growth in the first half of the year, driven by the 5G market. Strong growth also continued in both the industrial electronics segment and the semiconductor testing segment. Demand in the automotive industry segment remained almost at the previous year’s level. In the security and defense segment, demand decreased clearly.

The order book rose to EUR 4.0 million. The ongoing trade war and global economic uncertainty make it difficult to forecast customer demand for the rest of the year. Forecasts are made for a shorter timeframe and estimates vary more widely than before.

Overall, the entire global PCB market was slightly down by about 0.5 percent in the first half of the year (Custer Consulting, July 2019).

Second-quarter operating result improved substantially and amounted to EUR 1.4 million. Second-quarter operating result was 16 percent of net sales. The major factors behind the rise in profitability were the growth of production and sales volume and the greater share accounted for by more technologically demanding products. Operating profit for the first half of the year amounted to EUR 2.3 million, representing 14 percent of net sales. Cash flow from operating activities was EUR 2.7 million in the first half of 2019, a year-on-year increase of EUR 2 million.

The conductor patterns etching line included in the investment program went into the testing and deployment phase. This equipment enables new cost-effective and faster manufacturing technology for more demanding PCBs.

Espoo, August 8, 2019

Mikko Montonen, President and CEO