Bittium Corporation Lowers Its Financial Outlook for 2020
Stock Exchange Release
Free for publication on November 27, 2020 at 2.45 p.m. (CET+1)
Bittium Corporation Lowers Its Financial Outlook for 2020
Bittium Corporation lowers its financial outlook for 2020. The company expects that the net sales in 2020 will be at the same level or grow from the previous year (EUR 75.2 million in 2019), and the operating result will be lower than in the previous year (EUR 6.3 million in 2019). Earlier, Bittium expected that the net sales in 2020 will grow from the previous year (EUR 75.2 million in 2019) and the operating result will be at the same level as in the previous year (operating profit of EUR 6.3 million in 2019).
The reason for the decrease in the financial outlook is the postponement of some major product deliveries and several projects to 2021 caused by the coronavirus pandemic (SARS-CoV-2). As previously stated, the effects of the coronavirus pandemic have slowly begun to show in all of the company’s product and service areas, and the exceptional circumstances have significantly slowed down the company’s business. The progress of existing projects has slowed down and the start of new projects has been postponed. In addition, the restrictions caused by the pandemic slow down the new customer acquisition.
Despite of the global uncertainties, the company still believes that the impacts of the coronavirus pandemic are temporary and that in the long run the company has excellent opportunities to grow internationally. The effects of the pandemic are likely to be reflected in net sales and operating result in the first half of 2021. Bittium’s significant customers are leading international companies in their fields, and cooperation with them has continued strong even during the pandemic.
Bittium aims to be a significant global provider of secure and safe communication solutions in the defense and public safety markets, and a leading provider of connectivity solutions and R&D services for different industries, as well as a significant provider of remote measuring and diagnostics solutions for measuring and analyzing biosignals.
Outlook for 2020 as published on October 30, 2020 in the Business Review January-September 2020
The world-wide new coronavirus (SARS-CoV-2) pandemic significantly affects the global economy and market situation. The prevailing uncertainties in the markets cause weak visibility to the market situation.
Despite the uncertainties caused by the prolongation of the pandemic situation, the company maintains its financial outlook for the year 2020, however, continues following the market situation development constantly. The most significant risks in the outlook for the rest of the year relate to uncertainties related to the timing of product deliveries. If the outlook should change, the company may need to quickly re-evaluate the situation.
Bittium expects that the net sales in 2020 will grow from the previous year (EUR 75.2 million) and the operating result will be at the same level than in the previous year (operating profit of EUR 6.3 million). The level of the operating profit in 2020 will be impacted by the investments in the international growth and depreciations of the R&D investments.
In Oulu, November 27, 2020
The Board of Directors
Bittium Corporation
Further information:
Hannu Huttunen
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 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, neurology, rehabilitation, occupational health and sports medicine. Net sales in 2019 were EUR 75.2 million and operating profit was EUR 6.3 million. Bittium is listed on Nasdaq Helsinki. www.bittium.com