Intel to stay ahead in PC processor market

Aspocomp has announced that due to good volume growth its Q2 net sales grew by 2.4 % to EUR 42.1 million compared to the Q1 net sales, despite the depreciation of the US dollar and continued price erosionQ2 operating loss without non-recurring costs decreased to EUR 1.6 million from a loss of EUR 1.7 million during Q1. Reported operating loss, EUR 6.3 million, includes non-recurring costs of EUR 4.8 million, EUR 4.1 million of which is related to the downsizing of the Padasjoki PWB factory. Further non-recurring costs regarding the adjustments in operations are not planned.During this and the previous year, focus of the Aspocomp Group operations has been substantially transferred from Europe to Asia and the Asian share of the Group's monthly net sales is expected to be close to 40 % by the end of the year.Mechanics and Modules segment's business continues strong; the Q2 net sales grew by 34.3 % compared to the corresponding period previous year and the EBIT increased to EUR 1.4 million.As a result of the widening of the customer base the share of the Group's five biggest customers decreased during the first half of the year to 60 % (1-6/2002: 65 %)Both the net sales and the EBIT during the latter half of the year 2003 are expected to be higher than during the first half without the non-recurring costs. Cash flow from operations is expected to be clearly positive.The overcapacity in the global printed wiring board (PWB) market prevailed and led the price erosion to continue. At the same time more electronics manufacturing was moved to low labor cost countries in Asia, especially to China.During Q2 the mobile handset PWB sales stabilized. The telecom infrastructure PWB sales were slow. However, both automotive and industry PWB sales and Mechanics and Modules (MM) sales increased.Net sales totalled EUR 42.1 million for the second quarter compared with EUR 42.2 million during the corresponding period previous year. The negative impact of the depreciation of the US Dollar on the net sales was close to EUR 3 million.Reported net sales decreased by 3.8 % and totalled EUR 83.2 million for the first six months of the year compared with the reported EUR 86.5 million during the corresponding period previous year. The negative impact of the depreciation of the US Dollar on the net sales was about EUR 5 million.The share of the sales to company's five biggest customers, Nokia, Sanmina-SCI, Elcoteq, Siemens and Ericsson, was 60 % (the share of the five biggest in H1 2002 was 65 %).During the first half of the year 2003 the Aspocomp Group net sales were divided by area as follows: Europe 69 % (H1 / 2002: 60 %), Asia 15 % (11 %) and the Americas 16 % (29 %). The transfer from the Americas to Europe is related to the product project life cycles of the customers.The total manufacturing by area was as follows: Europe 73 % (80 %) and Asia 27 % (20 %).Source: PCBnewsline