Q&A Defense & Security

May 7, 2025 – Are there any critical technologies or structures in the circuit boards that limit potential suppliers? Is there a plan for a replacement supplier within the framework of normal practices? What do the company’s operating instructions or quality system require regarding the acquisition of replacement suppliers for critical parts?

The circuit boards we use are technically demanding, with very precise specifications in terms of materials and requirements. The specs of our defense products are truly state-of-the-art. Suppliers are carefully selected and certified, taking into account technical, quality and safety requirements. Although we started the measures and escalation early, considering the delivery times of the circuit boards, even a quick response will not have time to achieve results within the same quarter – especially when there is a surprising disruption in the supply chain. The so-called “second suppliers” are an essential part of supply chain risk management, which we implement whenever possible. As we state in our strategy, one important part of enabling growth is ensuring scalability. Teemu Hannula will start as Vice President, Operations soon. We have also invested in improving production capacity. Additional measures related to this circuit board case are already underway to secure growth.

April 30, 2025 – How many devices were not delivered (Q1 2025) due to component shortages?

It wasn’t really a component shortage – we just didn’t get enough PCBs on time. The PCBs have been on a critical path for some time. Corrective actions were taken well before the problem became apparent. There has been close monitoring of the supplier and senior management escalation meetings, but our supplier was unable to meet our needs. We have been assured that the problem is temporary and we will be able to fix the backlog. Of course, we will continue to closely monitor and, if necessary, senior management escalations.

We have not published the amount of backlog, but revenue growth and results would have been clearly better.

Nov 1, 2024 – What does Bittium think of this new Finnish company Summa? Is it a competitor or maybe a partner?

Bittium has no cooperation with Summa. Our competitors are major international players in the defense sector that have offering in the tactical communications market.

Jun 20, 2024 – Tutus Färist Mobile has received official NATO approval for its security phone. Is this Bittium Tough Mobile™ 2?

Tutus has several mobile platforms in its offering, of which Bittium Tough Mobile 2 is one. This press release you refer to is not related to Bittium’s products.

However, The Bittium Tough Mobile™ 2C solution has been published today on the list of NATO approved devices. The listing was already applied for a year ago, but it wasn’t published until now due to NATO’s internal delays.

Jun 19, 2024 – Could you elaborate on the expectations and possibilities regarding Croatia? In the release you mention that “The orders related to this cooperation, received during the implementation phase as well as the ones expected in the future, do not have significant impact on Bittium’s financial guidance for the year 2024, nor in achieving its long-term targets.” Why do years of work if there aren’t even any significant deals to be expected?

The Croatian deal is important for the company – every deal is important. This year’s realized and forecasted orders will not significantly affect the financial guidance for 2024. At the same time, we assume that the overall effect of future orders will not be significant and will not change our goals in one direction or another. The future orders are scheduled for a fairly long period of time, in which case the annual impact (which there is, however) will also be small. Let it be corrected that we do not sell our products at a loss.

We think it’s a good thing that we share our understanding of the significance of the deal, in which case we avoid over-interpretations of the impact of a single deal. Unfounded assumptions may arise through overinterpretations, which risk causing disappointment among share owners. The principles of disclosure are described in the Company’s disclosure policy, which can be found at: Disclosure Policy – Bittium

Feb 28, 2024 – VIRVE 2.0: How has the situation developed over the past year for Bittium and how does this and next year look like?

How does the replacement of old terminals progress each year?

In authority communication, information security should be high on the list of requirements? Now the phase is about to start, where the authorities get to know the service and the first phase terminals themselves, so this is probably the right time influence?

From Bittium’s point of view, the Virve situation has not developed in over the past year or so. The market is opening up slowly, and no tender has taken place where information security has been raised as the most important criterion – at least not yet, and we would be strong in that segment.

When moving to a completely new technology, the transition phase will be long (until 2030 in Finland) so that all the necessary functionalities can be developed and tested. A quick transition was attempted in a few European countries, but Bittium withdrew from tenders in those countries when we saw that the schedules would not be fulfilled and that a reasonable business opportunity for Bittium would not arise. The long transition process naturally favors the terminal suppliers of the old system, who continue to supply the existing devices and receive constant revenue from terminal sales. The transition to new services takes place slowly, and the challenger’s sales remain low during the transition.

Our products meet very demanding information security requirements and there is no suitable segment for us in the current authority networks, at least not yet.

We are currently convinced that customers who demand strong information security will not buy those services through the authority network in the near future. If the situation changes, of course we are ready to offer our products.

Feb 24, 2024 – Are you able to comment on the situation of the SDR radios of the Croatian army? A 2019 article states that Croatia is in the process of acquiring SDR radios. (Military Technology 9/2019)

Apparently, the acquisition would focus on Takrad’s radios? They have said in 2021 that their radio would be one of the most advanced.

Have the vehicle and hand-held radios already been purchased or is the tender process still underway?

How do Bittium radios differ from Takrad radios, since Bittium has also commented that the radios are more advanced than others?

As a rule, such tenders are not public, which makes it impossible for us to comment on the matter and share more information with the public than is allowed. We are also very careful not to compare and publicize the detailed features of our products when it comes to military performance.

The basic information of Takradi and Bittium Tough SDR Handheld radio found in public datasheets notice that our radio’s supported frequency range is wider and it also supports higher bandwidths than Takrad. In addition, it can be observed that the transmission power of the Takrad is lower than of the Tough SDR handheld radio. This is typical of the so-called for soldier radios, such as Takrad. Bittium’s handheld radio, on the other hand, is positioned more as the leader’s radio, when e.g. the radio must have a longer range than a soldier’s radio. Greater range can be achieved, for example, with lower bandwidth, lower transmission frequency and higher transmission power. On the other hand, the larger supported bandwidth of Bittium’s handheld radio allows, for example, higher data speeds.

So, in summary, we could say that Bittium Tough SDR Handheld radios fit well with short-range military radios, giving the defence forces a significant additional advantage than if only short-range handheld radios were used. Furthermore, Bittium’s overall solution is complemented by Bittium Tough SDR Vehicular vehicle radios from the Tough SDR product family and TACWIN products of the tactical backbone network, creating a unified, scalable and data-secure C5 system from the soldier to the commander.

Feb 14, 2024 – Did Bittium mention that at the end of 2023 or at the beginning of 2024, some tender related to defense was about to be concluded? Is it completed or is the work still in progress?

In the Financial Statement Bulletin 2023, published in February 9, 2024, we said that the international pilots of the Defense business progressed well, but more slowly than expected. The pace of tenders is always determined by the customer, and as they are not generally public, we are not able tell more about them.

Feb 5, 2024 – The SDR letter of intent with the Finnish Defence Forces is almost 7 years old. Now would be the time for Bittium to fulfill its promises and start making profits for investors. Why have Sankala and some others from Defense and Security Business segment left the company, if the SDR is about to take off?

The cooperation with the Defense Forces for the development of Tough SDR radios has indeed already started in August 2017 with the signing of the letter of intent, which started the development of the products. 1.5 years later, in December 2018, the letter of intent was followed by the signing of the purchase agreement, according to which the Finnish Defense Forces ordered the first batch of radios for the ground forces. The radios were planned to be delivered by the end of 2020, but the delivery was delayed by about a year due to delays in the development project. The purchase agreement includes an optional additional purchase, on the basis of which Finnish Defence Forces have an option acquires radios.

You have been able to follow the progress of product development in our interim reports – both positive and negative steps. The radios are designed to withstand and function in extreme conditions and are the very top of their field, and they play a significant role in leading national defense.

In November 2022, the Finnish Defense Forces placed the first order, which was related to the optional additional purchase of the letter of intent concluded in 2018. The radios have been piloted and tested in practical exercises, through which we have also received feedback on their interoperability with other devices in the National Defence C5 System. Over the past year, pilot use has expanded in accordance with the plans and schedules of the Defence Forces. The Finnish Defence Forces are planning a large-scale deployment of the equipment, and with this systematic piloting, volume orders and larger-scale equipping of the troops can begin according to their schedules.

Naturally, we do not comment on why individual people have left Bittium. But it hasn’t happened for product related reasons.

Jan 12, 2024 – Unfortunately, we did not hear about the NATO approval of the Bittium Tough Mobile™ or other decisions of the Defense sector’s tenders in 2023, which the company estimated happening in late 2023 and early 2024. Already a year ago, we were also waiting for approval for Bittium Respiro. In my opinion, this comprehensively describes Bittium’s understanding of customers  and authorities and their processes.

We have tried to tell and predict the future according to the best of our understanding and to correct the predictions when needed. The company must now and in the future better understand official processes. We understand our customers’ processes better, but even those don’t always happen predictably for reasons beyond our control.

Nov 12, 2023 – is Bittium part of these Digital Defence Ecosystem coalitions and delegations?

Bittium has been involved in the Digital Defense Ecosystem since its inception (Digital Defense Ecosystem 8). We always consider export promotion trips carefully and have participated when it has created good opportunities for us.

Jan 23, 2023 – Is Bittium still involved in these (Satelliittiyhteydet yleistyvät vauhdilla puhelimissa – Useita kiehtovia projekteja on kulman takana, Tekniikka ja Talous, 29.12.2022).  It would seem that the market has picked up now. Mexican IPR can also be used elsewhere?

We are currently involved in developing satellite communication technology for one of our customers in our Engineering Services business segment. We also continue to offer the development of satellite phones as a service, and the recovery of the market can create new opportunities for us. We are not developing our own satellite phone. Also, Mexsat devices cannot be directly used outside the Mexsat network, but a large part of the technological solutions of Mexsat phones are generally applicable to satellite phones.

Jan 23, 2023 – Patria received large orders for 8×8 AMV’s in Japan. What are the chances that Bittium’s radios will go to these? How does cooperation with Patria play in general?

Tenders for tactical communication radio systems are usually always separate tenders. The radios selected in them are then integrated with the vehicles selected in a separate vehicle acquisition program. The procurement organizations are also completely separate, i.e. the people in the different armies responsible for the vehicles are not involved in any way with the organization responsible for the radios. Both organizations are looking for the best possible technical or commercial solution for their special area and needs. In addition, procurement schedules are usually in different cycles, and the budgets are usually not at the same time either.

We have continuous marketing cooperation with Patria and Bittium’s vehicle radios are installed in Patria’s vehicles at fairs and other marketing situations