Bittium Corporation lowers its financial guidance for the year 2017
Stock exchange release
Free for publication on October 10, 2017 at 5.58pm (CEST+1)
Bittium Corporation lowers its financial guidance for the year 2017
Bittium Corporation lowers its financial guidance for the year 2017. The reason for this is the delay in the first phase of the product deliveries for the Mexican Mexsat satellite phone system, to be mainly executed in 2018 due to the internal reasons of Mexican governmental customers. Bittium has expected earlier those product deliveries to be executed during the second half of 2017.
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). In the Half Year Financial Report January-June 2017, published on August 9, 2017 Bittium still expected that the net sales in 2017 will be at the same level as in the previous year (EUR 64.2 million, in 2016) and the operating result to be negative (EUR 2.5 million, in 2016).
The decline in the amount of the product deliveries of the Mexsat mobile devices in 2017 will not change Bittium’s long-term growth outlook. The year 2017 has already been expected to be challenging mainly due to the termination of significant customer cooperation with a global network equipment manufacturer.
NEW: Outlook for 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).
PREVIOUS: Outlook for 2017 (published on August 9, 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 reason for this is the termination of significant customer cooperation with a global network equipment manufacturer. To this extent this kind of extensive and rapid decrease in the services business net sales is impossible to be replaced with other projects in a short term, which effects directly the development of net sales and operating result in 2017. In addition, the operating profit level of the year 2017 is also affected by the investments started to enable future growth.
Bittium expects that the net sales in 2017 will be at the same level as in the previous year (EUR 64.2 million, in 2016). The operating result is expected to be negative (EUR 2.5 million, in 2016).
Oulu, October 10, 2017
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 30 year legacy of expertise in advanced radio communication technologies. Bittium provides innovative products and services, 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. From November 2016 onwards, Bittium offers its customers also healthcare technology products and services in biosignal measuring in the areas of cardiology, neurology, rehabilitation, occupational health and sports medicine. Net sales in 2016 was EUR 64.2 million and operating profit was EUR 2.5 million. Bittium is listed on Nasdaq Helsinki. www.bittium.com.