Stock exchange release
Free for publication on October 5, 2016 at 8.00 am (CEST+1)
Cooperation with significant customer of Bittium Corporation will reduce
Bittium Corporation has received information according to which significant
customer cooperation with a global network equipment manufacturer will reduce
during 2017. According to the information received, if the planned actions of
the customer will materialize in full, these actions might have a negative
effect to Bittium’s net sales and operating result in 2017.
The reduction of the cooperation will not have an effect on the Bittium’s
outlook for 2016 published in the half year financial report January-June 2016.
Bittium expects further that the net sales in 2016 will grow from the previous
year (net sales of EUR 56.8 million, in 2015). The development of the operating
result includes still many uncertainties and therefore the company has decided
not to give guidance on the development of the operating result. These
uncertainties include possible non-recurring investments in building long-term
growth and significant variations in the operating result between the quarters
due to the timing of product deliveries.
Bittium will publish the outlook for 2017 in connection with the financial
statement bulletin January-December 2016.
As part of the strategy work, Bittium will evaluate the effects of the reduction
of the cooperation on the financial targets given on July 1, 2015 in connection
with company’s strategic guidelines. These financial targets published were as
follows: The target during 2015 - 2017 is to grow the net sales at least 10 %
annually and reach EBIT level 10 % of net sales at the latest in 2017. Bittium
targets, by the year 2017, to clearly increase the share of net sales generated
from own products and product platforms, from the 26.7 % level of net sales in
2014.
Bittium will publish its interim report January-September 2016 on November 3,
2016 at 8.00 am (CEST+1).
Oulu, October 5, 2016
Bittium Corporation
The Board of Directors
Further information:
Hannu Huttunen
CEO
Tel. +358 40 344 3507
Distribution:
Nasdaq Helsinki Ltd
Main media
Bittium
Bittium specializes in the development of reliable, secure communications and
connectivity solutions leveraging its 30years legacy of expertise in advanced
radio communication technologies. Bittium provides innovative products and
customized solutions based on its product platforms and R&D services
complementing its communications and connectivity solutions. Bittium offers
proven information security solutions for mobile devices and portable computers.
Net sales of continuing operations in 2015 were EUR 56.8 million and operating
profit was EUR 2.3 million. Bittium is listed on Nasdaq Helsinki.
www.bittium.com
