Financial outlook for 2017

(Updated October 10, 2017)

Bittium will continue to look for inorganic growth opportunities in all its product and service areas and is prepared to invest in acquisitions that support its growth strategy. The growing need for wireless connectivity, increasingly growing amount of data transfer and the need for secure data transfer create demand for Bittium´s competence, products and product platforms. In a long term Bittium still has good conditions to grow profitably. Bittium aims further at growing net sales based on its products and product platforms.

Bittium has announced earlier that it targets 10 percent annual growth in net sales and to reach EBIT level 10 percent of net sales in the year 2017 at the latest. The company believes that in the coming years it is able to grow its net sales even more than the earlier announced target, and therefore sets up a target to exceed the annual 10 percent growth target of the net sales. However, Bittium believes, that during the year 2017 it is not yet able to reach the targets set for the growth in the net sales and EBIT level. The development of the net sales for 2017 is negatively affected by the earlier announced termination of significant customer cooperation with a global network equipment manufacturer, the delay in the first phase of the product deliveries for the Mexsat satellite phone system to be mainly executed in 2018, and the investments started to enable future growth.

Bittium expects that the net sales in 2017 will be lower than in the previous year (EUR 64.2 million, in 2016). The operating result is expected to be clearly negative (EUR 2.5 million, in 2016).

More information about Bittium's market outlook is presented in the Half Year Financial Report 2017 in the section "Market Oulook" and on these internet pages in "Market outlook".

More information about other uncertainties regarding the outlook is presented in the Half Year Financial Report 2017 in the section "Risks and uncertainties" and on these internet pages in "Identified risks and uncertainties".