Bittium Corporation Continues to Develop Its Operations Towards Independent Business Units and Starts Change Negotiations
Bittium Corporation
Inside information
Bittium Corporation Continues to Develop Its Operations Towards Independent Business Units and Starts Change Negotiations
Bittium Corporation, Stock Exchange Release, August 23, 2023, at 9.00 am (CEST+1)
Bittium Corporation has today decided to start change negotiations as part of measures to improve its profitability and develop its operations towards independent business units. The change negotiations concern all Bittium group’s subsidiaries in Finland, and the negotiations cover around 600 employees. The planned measures, if implemented, could lead to a termination of employment or lay-offs of a maximum of 80 employees. Change negotiations are initiated for financial and production-related reasons as well as for reasons related to the reorganization of the company’s operations.
Bittium has previously stated that it is developing its operations towards independent business units, which are Defense & Security, Medical Technologies, and Connectivity Solutions. The company aims at a clearer focus, growth, and improvement of its ability to generate profits. The development of operations will be completed during 2023, and the company will start segment-based reporting based on the new structure from the beginning of 2024 at the latest. As part of this development, the company plans to change its organizational structure to serve its independent business units more efficiently.
To enable profitable growth, Bittium has also continued other measures and is reviewing its processes, operating methods, and cost structure. As part of the measures, the company has decided to close its offices in Mexico and Singapore and terminate the activities of its subsidiaries (Bittium Mexico S.A. de C.V. and Bittium Singapore Pte. Ltd.) in these countries. This will not affect the company's ability to serve its customers or deliver products to its customers in South America or Asia.
With these measures to improve profitability and strengthen competitiveness, Bittium aims for annual cost savings of approximately EUR 6.0 million. This supports Bittium's goal of achieving an average annual net sales growth of more than 10 percent and an operating profit level of 10 percent, which the company estimates it will achieve in 2024 (stock exchange release on December 9, 2022).
Oulu, August 23, 2023
Bittium Corporation
Johan Westermarck
CEO
Further information:
Johan Westermarck
CEO
Tel. +358 40 344 3507
Distribution
Nasdaq Helsinki Oy
Main media
Bittium
Bittium specializes in the development of reliable, secure communications and connectivity solutions leveraging its over 35-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. Bittium also provides healthcare technology products and services for biosignal measuring in the areas of cardiology and neurophysiology. Net sales in 2022 were EUR 82.5 million and operating profit was EUR 0.3 million. Bittium is listed on Nasdaq Helsinki. www.bittium.com