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CEO’s review

Sales developed favorably in all customer segments, amounting to EUR 6.1 million. Net sales increased by 4 percent compared to last year's reference period. 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 percent. This difference is due to changed timing in revenue recognition in consignment warehousing.

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.

The operating result for January-March grew to EUR 0.3 million thanks to growth in net sales and higher factory utilization, as well as the cost savings yielded by operational development programs. The operating profit margin rose to 5 percent. Cash flow from operations amounted to EUR 0.3 million.

Investments rose to EUR 1.4 million, mainly due to the acquisition of Aspocomp's production facility in Oulu and the launch of the investment program announced in December 2017. The acquisition of the PCB factory premises in Oulu and future investments to improve technological capabilities and capacity will increase competitiveness and bolster the company’s position as a partner to the world’s leading technology companies.

 

Espoo, April 27, 2018