Elektrobit Group Oyj - Bittium Corporation's outlook for the year 2015
July 01, 2015
Bittium Corporation's outlook for the year 2015
Stock Exchange Release
Free for publication on July 1, 2015 at 3.20 pm (CEST+1)
Bittium Corporation's outlook for the year 2015
(Continuing operations without Automotive business)
The outlook for 2015 has been updated due to the sale of the Automotive business and the change of the company name on July 1, 2015. Outlook regarding the net sales and operating result remains the same as given in the outlook in the stock exchange release published on May 19, 2015.
In the interim report January-June 2015 EB will report Wireless business and corporate functions as continuing operations and the Automotive business, sold on July 1, 2015, will be reported as discontinued operations.
For the year 2015 Bittium expects that from continuing operations the net sales will grow and operating profit will be at the same level or higher than in the previous year for the Wireless business (net sales of EUR 53.0 million and operating profit of EUR 1.0 million in 2014).
The 2015 business outlook for the Wireless business remains unchanged. In the Wireless business, the demand for R&D services and products is expected to develop positively especially in the authority markets and in various applications where wireless connectivity is needed.
Due to the sale of the Automotive business, the continuing operations of Bittium will carry approximately EUR 1.0 million more of the costs of the corporate functions during the second half of year 2015, since these costs will no longer be shared with the Automotive business.
The operating profit outlook above does not include non-recurring profits and costs related to the sale of the Automotive business or the demerger process that has been canceled. The non-recurring costs related to these events are included in the estimate of non-recurring items below resulting from the sale of the Automotive business.
Non-recurring items
The transaction is estimated to have approximately EUR 530 million positive non-recurring effect on Bittium's net profit for the full year 2015. This estimation includes both the proceeds from the sale of Automotive business and the costs related to this transaction and the costs related to the canceled demerger process. The company plans to update these estimates on the financial effects of the transaction in its interim report January-June 2015 to be published on August 6, 2015.
Risks and uncertainties regarding the outlook
Market outlook for Bittium remains as described in the Interim Report for January-March 2015, under the section "Market outlook for the Wireless Business Segment".
More information about other uncertainties regarding the outlook is presented in the sections "Risks and uncertainties" and "Events after the review period" in the interim report January - March 2015, as well as on the company's internet pages at www.bittium.com .
Oulu, July 1, 2015
Bittium Corporation
Board of Directors
Further information:
Jukka Harju
CEO
Bittium Corporation
Tel. +358 40 344 5466
Distribution:
NASDAQ Helsinki
Main media
Bittium
Bittium is specialized in developing reliable and secure communications and connectivity solutions using the latest technologies and deep knowledge on radio technology. Bittium provides innovative products and customized solutions based on its product platforms, and R&D services for customers in various industries. Bittium also offers high quality information security solutions for mobile devices and portable computers. Net sales of continuing operations in 2014 was EUR 53.0 million and operating profit was EUR 1.0 million. Bittium is listed on Nasdaq Helsinki. www.bittium.com
