KISTA, SWEDEN – Note reported lost sales in the first quarter of about SEK 20 million (US$2.1 million) as a result of stoppage of manufacturing in China. However, for the past two weeks, production at Note’s plant in China has been running at full capacity.

Sales in the first quarter are estimated to amount to SEK 460 million (US$47.2 million) to SEK 470 million (US$48.2 million), growth of about 15%.

“Of course, we view the corona situation very seriously,” said CEO and president Johannes Lind-Widestam. “At the beginning of the year, we took many measures in respect to the emerging situation. In January, we introduced a number of restrictions internally regarding travel, meetings and external visits. In connection with the Chinese New Year in January, the plant in China was closed for a week longer than usual. In close cooperation with local authorities, a number of precautions were taken to prevent the spread of the virus before the plant was reopened for production on Feb. 10. Personnel at the plant in China has gradually returned, and production has been running for two weeks at the regular high rate. Demand for electronics production in China remains high, and we expect to be able to catch up production loss from the extended shutdown, mainly through increased overtime, in the coming quarter.

“At the same time, a close dialogue is held with suppliers, not least regarding PCBs, to identify and limit disruptions of deliveries to our plants and consequential delays to our customers. Some incoming material delays have occurred, which has resulted in more re-planning of production than normal. Priorities have, of course, been made by working in partnership with the customers concerned. Of course, it is difficult to foresee all possible supply disruptions and component shortages moving forward. So far this year, the availability of electronics components and other production materials has been relatively good, despite the problems surrounding corona.

“We have a high customer order booking for delivery during the second quarter and onward and are working intensively to ensure continued good availability of materials.”

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