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CEO’s review

Sales remained stable despite uncertain market conditions. Demand in the third quarter of the year is typically weaker because customers engage in less product development during the summer in all customer segments. As in the previous year, demand swung to very strong growth towards the end of September and the order book strengthened significantly from the comparison period.

Third-quarter net sales amounted to EUR 6.7 million, unchanged from the corresponding period of the previous year. Net sales for the first three quarters increased by 12 percent compared to last year’s reference period, amounting to EUR 23.0 million.

Third-quarter operating result was EUR 0.5 million, approximately 7 percent of net sales. Profitability for the quarter was weakened by the significant decline in the share of sales generated by R&D series compared to volume supply products. At the same time, the availability of certain materials used in PCB manufacturing decreased and delivery times were prolonged, leading to a drop in deliveries of high value-added products. Materials availability and security of supply improved only towards the end of the quarter.

Operating profit for the first three quarters of the year increased by 66 percent compared to last year’s reference period, amounting to EUR 2.7 million and representing 12 percent of net sales. Cash flow from operating activities was EUR 4.9 million during the first three quarters, more than double compared to the previous year.

The order book was at the record high of EUR 4.9 million at the end of the third quarter, a year-on-year increase of 60 percent. The stronger order book will boost business during the rest of the year.

Espoo, November 29, 2019

Mikko Montonen, President and CEO