Financial Statement Release
Unless otherwise mentioned, the figures in brackets refer to the corresponding period in the previous year.
Summary October-
- Net sales were
EUR 25.7 million (EUR 27.6 million ), representing a 7.0 percent decrease year-on-year. -
The share of product-based net sales was
EUR 16.8 million (EUR 20.9 million ), representing 65.3 percent of the net sales. The share of Medical products wasEUR 5.3 million (EUR 5.1 million ), and the share of Defense & Security products wasEUR 11.4 million (EUR 15.8 million ). -
The share of services-based net sales was
EUR 8.9 million (EUR 6.7 million ), representing 34.7 percent of the net sales. The share of Engineering Services' R&D services wasEUR 4.3 million (EUR 4.2 million ). -
In the fourth quarter, there were non-recurring items of
EUR 3.2 million in total, including non-recurring costs ofEUR 0.7 million resulting from the change negotiations, and non-recurring write-down ofEUR 2.5 million due to the impairment of inventory. -
EBITDA was
EUR 3.3 million (EUR 5.8 million ), including above-mentioned non-recurring items ofEUR 3.2 million . -
The operating result was
EUR 1.0 million (EUR 3.0 million ), including above-mentioned non-recurring items ofEUR 3.2 million . -
The result for the period was
EUR 0.6 million , and earnings per share wereEUR 0.016 , including above-mentioned non-recurring items ofEUR 3.2 million (result for the periodEUR 3.5 million and earnings per shareEUR 0.098 ). -
Resulting from the change negotiations and other cost measures taken, Bittium will achieve approximately
EUR 6.0 million annual cost savings in total, from whichEUR 0.8 million realized during 2023. The total cost savings the company estimates to achieve in 2024 in full. -
Cash flow from operating activities was
EUR 0.6 million (EUR 0.1 million ). -
Net cash flow was
EUR -1.3 million (EUR -2.7 million ).
Summary January-
- Net sales were
EUR 75.2 million (EUR 82.5 million ), representing an 8.8 percent decrease year-on-year. -
The share of product-based net sales was
EUR 45.8 million (EUR 57.4 million ), representing 60.9 percent of the net sales. The share of Medical products wasEUR 21.8 million (EUR 22.6 million ), and the share of Defense & Security products wasEUR 24.0 million (EUR 34.8 million ). -
The share of services-based net sales was
EUR 29.5 million (EUR 25.1 million ), representing 39.1 percent of the net sales. The share of Engineering Services' R&D services wasEUR 17.0 million (EUR 15.2 million ). -
In the fourth quarter, there were non-recurring items of
EUR 3.2 million in total, including non-recurring costs ofEUR 0.7 million resulting from the change negotiations and non-recurring write-downEUR 2.5 million due to the impairment of inventory. -
EBITDA was
EUR 5.2 million (EUR 11.0 million ), including above-mentioned non-recurring items ofEUR 3.2 million . -
Operating result was
EUR -4.3 million (EUR 0.3 million ), including above-mentioned non-recurring items ofEUR 3.2 million . -
Result for the period was
EUR -5.4 million , and earnings per share wereEUR -0.153 , including above-mentioned non-recurring items ofEUR 3.2 million (result for the periodEUR 0.3 million and earnings per shareEUR 0.007 ). -
Resulting from the change negotiations and other cost measures taken, Bittium will achieve approximately
EUR 6.0 million annual cost savings in total, from whichEUR 0.8 million realized during 2023. The total cost savings the company estimates to achieve in 2024 in full. -
Cash flow from operating activities was
EUR 1.2 million (EUR 8.0 million ). -
Net cash flow was
EUR -10.7 million (EUR -3.0 million ). -
The order backlog was
EUR 27.6 million (EUR 28.1 million ) -
The Board of Directors of
Bittium Corporation proposes to the Annual General Meeting to be held onApril 10, 2024 , that a dividend ofEUR 0.03 per share be paid based on the balance sheet to be adopted for the financial year ended onDecember 31, 2023 . The Board of Directors furthermore proposes that the Annual General Meeting would authorize the Board of Directors to decide, at its discretion, on the payment of an extraordinary dividend ofEUR 0.03 per share, byOctober 31, 2024 . The Board of Directors expects that this discretionary extraordinary dividend will be paid, unless there is a significant deterioration in the business environment during 2024.
GROUP (MEUR) | 10-12/2023 | 10-12/2022 | 1-12/2023 | 1-12/2022 |
3 months | 3 months | 12 months | 12 months | |
25.7 | 27.6 | 75.2 | 82.5 | |
Change of net sales, % | -7.0 % | -8.1 % | -8.8 % | -5.1 % |
EBITDA | 3.3 | 5.8 | 5.2 | 11.0 |
EBITDA, % of net sales | 12.9 % | 21.1 % | 6.9 % | 13.4 % |
OPERATING PROFIT / LOSS | 1.0 | 3.0 | -4.3 | 0.3 |
Operating profit / loss, % of net sales | 3.9 % | 10.7 % | -5.7 % | 0.4 % |
RESULT OF THE PERIOD FROM CONTINUING OPERATIONS | 0.6 | 3.5 | -5.4 | 0.3 |
CASH AND OTHER LIQUID ASSETS | 8.3 | 19.0 | 8.3 | 19.0 |
EQUITY RATIO (%) | 69.6 % | 69.7 % | 69.6 % | 69.7 % |
EARNINGS PER SHARE (EUR) | 0.016 | 0.098 | -0.153 | 0.007 |
Bittium's CEO
The year 2023 was a year of changes at Bittium. There were changes in the Company's
The updated strategy focuses on the years 2024 and 2025 and has three very essential priorities: 1. change from R&D organization to a customer- and growth-oriented operating model through segment organizations, 2. focusing on current products and increasing their market shares, and 3. increasing efficiency and lightening the cost structure, which is expected to improve the company's profitability and cash flow significantly.
In accordance with the updated strategy, Bittium has three Business Segments: Defense & Security, Medical, and Engineering Services. We reorganized our operations to optimize the operations of the independent Business Segments and went through change negotiations in the Finnish subsidiaries. In addition, previously centralized group functions are now largely divided into Business Segments, meeting the needs of each Segment best. As a result of the reorganization and change negotiations, the number of personnel in group operations dropped from approximately 130 to 50. In connection with the transition to the new reporting structure, we decided to separate the remaining group functions into own segment in order to further improve transparency into the development of the company's Business Segments. Financial reporting based on these - altogether four segments - will start this year.
The net sales and operating result in 2023 decreased from previous year. The fourth quarter was the strongest, as typical, but also there the net sales remained lower than in the corresponding period the year before. There were also non-recurring costs of
The net sales of 2023 decreased by 8.8 percent. The financial development was affected by Medical business' delays in product deliveries in the beginning of the year, caused by the component shortage, and slower than estimated sales development outside of US markets, as well as by the slowness of medical device regulatory approvals. Also, the slower-than-estimated progress of multi-year projects in the Defense business last year, and thus the timing of the product orders affected the 2023 net sales.
In the Defense & Security business, pilot projects with our customers abroad progressed well, but slower than expected. With the Finnish Defense Forces we renewed a significant framework agreement regarding the tactical communication system and products. This cooperation is very important for Bittium in terms of the development of the entire tactical communication product portfolio, and this framework agreement confirms the continuation of the cooperation in the coming years. The deployment of Bittium Tough SDR(TM) software-defined radios has progressed according to the plans of the Defence Forces, with the aim of ensuring the performance of the equipment during 2024 to start a wider deployment of the radios.
The importance of secure communication has emphasized, and the interest, especially among authorities, increased. We delivered secure Bittium Tough Mobile(TM) phones and secure software solutions to several European countries. We applied for a
In medical technology products, we continued our good cooperation with our key customer
Despite the prevailing cost-saving needs in the markets among our customers, the sales of Bittium's R&D services grew during 2023. The growth was driven by the accelerating digitization in various industries increasing the need for design services in several industries, as well as the increase of European companies' product design work in
Bittium's goal is to be a major international supplier of secure and reliable communication solutions for the defense and security markets, a leading supplier of industrial connectivity solutions and R&D services, and a major supplier of measurement and remote diagnostics solutions for measuring and analyzing biosignals.
In this context, I would like to thank our customers and partners for the past year and for the trust that prevails between our companies. I thank our personnel for their good work, commitment, and resilience, especially in the middle of all these changes. I would also like to thank all our shareholders for their trust and perseverance.
In 2024, we will focus on achieving the goals set for us in the new segment organization model, along with new operating methods and processes. We have published our main strategic focus points for the next two years to get the company on a healthy profitable growth path. With systematic work and the right prioritizing we have every opportunity to achieve the goals set for us.
Outlook for 2024
Financial Outlook 2024
Bittium expects the net sales in 2024 to be
More information about Bittium's market outlook is presented in this report in the section "Market Outlook" as well as on the company's internet pages at www.bittium.com.
Strategy Implementation and Other Significant Events in 2023
At the beginning of 2022, Bittium started developing its operations towards independent business units with the aim of starting business-specific segment reporting by the beginning of 2024 at the latest. With the change, the company seeks a clearer focus for its operations, growth, and improvement of its ability to generate results. The renewal was completed during 2023, and the company will start segment reporting based on the new structure from the beginning of 2024.
The technological know-how needed in all the company's businesses is similar, but the businesses, customers and market dynamics are very different. The stronger independence of the businesses strengthens Bittium's ability to serve its customers in a more customer-oriented manner and improves the speed of decision-making in each business, strengthening the company's position in each market. It also speeds up the responsiveness of business operations to the surrounding market changes, enabling the production of ever-increasing added value for customers.
During 2023, the company continued to work to strengthen its business functions to enable the formation of independent businesses. As part of this development, the company changed its organizational structure to serve its independent business units more efficiently. The operations of the entire group were reorganized by transferring, among other things, the previously jointly centralized group functions to a large extent to the Business Segments in accordance with the needs of each segment. This significantly lightened the company's cost structure at the group level.
In the second half of the year, the company went through significant change negotiations due to production, financial and reorganization related reasons. Change negotiations started on
As part of the company's actions to improve financial performance, all the company's processes, operating methods, and cost structure were reviewed and modified to enable profitable growth. The company also decided to close its offices in
Through dismissals and temporary layoffs and other cost-saving measures, the company will achieve annual savings of approximately
Profit Warning (announced on
On
The main reason for the decrease in net sales and operating result was the delivery volumes of tactical communication products and security solutions in the Defense & Security business unit, which were realizing along the year at a slower pace and with lower volumes than earlier expected. Due to the decrease in the net sales and operating result, the cash flow in 2023 was expected to be negative.
Updated Strategy - from R&D House towards
On
In accordance with the updated strategy, the company has three Business Segments: Medical, which focuses on measuring biosignals and remote monitoring, Defense & Security, which offers products and services to the defense and security markets, and Engineering Services, which offers R&D services. Group operations that were previously centralized are now also largely divided into the company's three Business Segments, best meeting the needs of each segment. This was an essential change to optimize the operation of more independent businesses.
The company's updated strategy has three main focus areas. The first one is a change from a product development organization to a customer-centric, growth-oriented operating model through its segment organizations. Secondly, the company focuses strongly on its current products and increasing their market shares. The R&D work is mainly concentrated on further improving the competitiveness and productivity of these products. Thirdly, the company seeks to increase efficiency in its own operating methods and has streamlined its cost structure, which is expected to significantly improve the company's profitability and cash flow.
Between 2016 and 2023, the company's two Business Segments, Defense & Security and Medical, have strongly invested in the development of their own products. This has maintained the company's high average annual R&D investment level of around
Medical Business Segment
The Medical Business Segment consists of three business areas, which are the measurement and analysis of the electrical activity of the heart (ECG), the measurement and analysis of the electrical activity of the brain (EEG), and the measurement and analysis of sleep apnea. In business, the focus is specifically on further improving the competitiveness, and productivity of the products, as well as on the efficiency of operations.
In the medical technology market, significant development is taking place regarding the treatment of patients, especially outside hospitals. Increasing efforts are being made to prevent diseases and health problems with the help of early diagnostics. The aim is to discharge patients at an even earlier stage to reduce hospital and treatment days. These significantly increase the efficiency of healthcare processes, reduce costs, and improve the treatment experience. The prerequisite for the prevention of health problems and early discharge is enabling accurate monitoring and measurement in home conditions with the help of remote monitoring.
The offering of the Medical Business Segment focuses on remote monitoring solutions. Bittium has solid and proven world-class biosignal processing technology expertise. In the coming years, the company will focus on its product business to also increase the amount of recurring net sales, both with the help of software and various multi- and single-use products. In the medical business, the focus will be on cooperation with existing international key customers to increase market shares together, and on acquiring new customers.
Defense & Security Business Segment
The Defense & Security Business Segment consists of three business areas that are defense industry products (Defense Products), defense industry product development services (Defense Services) and secure products and services (Security). Bittium's business consists of tactical communication solutions aimed at the defense market and high security communication solutions aimed at authorities and the professional user market.
Over the past years, the company has made significant investments to expand its product portfolio. The products and systems are now at an internationally very competitive level, both in terms of coverage and technical characteristics. In the future, the company will focus on the continuous improvement of the competitiveness of existing products and the development of features to ensure the preservation of competitiveness. The company will put emphasize strongly in its key customers and invest in international sales and marketing to pursue new customers. The company's goal is to grow significantly the international product business and achieve an internationally significant position as a provider of tactical communication and high security communication solutions.
Engineering Services Business Segment
In the Engineering Services Business Segment, Bittium offers its customers R&D services and wireless connectivity solutions for the development of innovative products in a secure and evolving wireless environment. The company has focused its R&D service offering around radio technologies and embedded devices. Bittium has world-class expertise in wireless technologies and comprehensive product development throughout the whole product life cycle.
In the mobile telecommunications, investments in the development of new features continue, and the importance of software development regarding the development of 5G networks is strengthened. Along with digitization, secure IoT (Internet of Things) is a significant development area in almost all industries, where the demand is created by the growing need of companies to digitize their operations, collect data wirelessly and transfer data to cloud services, as well as monitor and control devices and systems remotely. Also, the goal of western companies to shift the focus of R&D to an increasing extent, e.g., to
In the coming years, Bittium will continue to grow its international customer base, especially in the Industry IoT market segment. The company will also invest in developing strategic partnerships with its current customers.
Long-term financial goals (announced on
Bittium kept its long-term financial goals unchanged. The company aims for an average annual net sales growth of more than 10 percent and an operating profit level of 10 percent and estimated to achieve these goals in 2024.
Capital Markets Day 2023
Bittium organized a Capital Markets Day on
Segment-based Financial Reporting
In
In the new reporting structure, there will be four reporting segments: the three Business Segments (Defense & Security, Medical, and Engineering Services), and, in addition, the company decided to report the Group Functions as a separate, fourth segment. The goal of adopting the new reporting structure is to improve the transparency into the company's Business Segments and their development.
The new Group Functions segment includes group administration, strategic projects, and stock market listing related functions, as well as renting premises owned by the group. Group Functions charge rent from Business Segments for the premises. In addition to this, Group Functions produces common services for the Business Segments, which are reasonable to be managed centrally. For these services, the Business Segments pay a service fee in proportion to the amount of each segments' personnel. The CEO, CFO, CDO, Vice President, Communications and Sustainability, and CLO are responsible for the Group Functions. Altogether, there are approximately 50 employees in Group Functions.
The reportable financial indicators of the new segments are net sales, EBITDA, EBITDA % of net sales, operating result, operating result % of net sales, R&D investments, capitalized R&D investments, new orders and order backlog, and the amount of personnel. The first financial report based on these new segments will be
Seamless and Secure Connectivity Program
At the end of March, Bittium launched the Seamless and Secure Connectivity program, the purpose of which is to enable end-to-end connections in various operational areas with reliable, secure, and fault-tolerant connectivity architectures and products, including life-cycle services for products and solutions. Business
The Seamless and Secure Connectivity program enables comprehensive development of strategically important themes for Bittium. These themes include, e.g., encryption and information security technologies and remote medical diagnostics (ECG, EEG, and sleep apnea) including measuring of biosignals, digitalization of services, increase in wireless connectivity and data secure connections.
In connection with the program, the first two co-innovation projects were launched during 2023: CISSAN, which is part of the EU CELTIC-Next program, creating algorithms to reduce IoT security threats, and Photon-Wear, which aims to develop optical detection methods for physical parameters and biomarkers. In total, there have been around 50 partner companies or research institutes in the ecosystem discussions so far, and several co-innovation projects are expected to be launched from the projects also during 2024.
Market Environment and Business Development in January-
Defense & Security Business
The world's political situation changed significantly in
Interest in Bittium's tactical communication solutions has remained on a high level, and the ongoing international customer pilots have progressed well. Bittium is involved in several tenders regarding tactical communication products and systems, which may take several years, depending on the scope of each project. The feedback on Bittium's products in the field tests has been positive, and we expect the results of the ongoing tenders during the current year.
Close cooperation with the Finnish Defense Forces continued. Bittium's tactical backbone network and the related products and radios are used by all defense branches of the Defense Forces, supporting the modern way of fighting, where the mobility and management of the forces on the move and effective communication are essential. In 2023, product delivery volumes remained low compared to the corresponding time of the previous year caused by the slow progress in several customer projects during last year. This is typical in multi-year customer projects, where the annual delivery quantities vary between the different phases of the project.
On
The deployment of Bittium Tough SDR(TM) software-defined radios has progressed according to the plans of the Defence Forces, with the aim of ensuring the performance of the equipment during 2024 to start a wider deployment of the radios. The waveform development of the radios and the development of new functionalities for the customer continued as planned.
In December, the Finnish Defense Forces ordered development work from Bittium for a new software-based router intended for tactical communication. The software router enables the formation of even larger network entities for the tactical communication needs of the mobile forces. The value of the order was approximately
In
The discussions about cooperation with international companies developing air defense and sensor systems progressed.
In November,
With
Bittium has applied for a
Interest in secure Bittium Tough Mobile(TM) mobile phones and information security-related software has increased due to numerous data security attacks. The sales volume of the devices increased during 2023. Phones, their background systems and software were delivered to several European countries for authorities' usage. The Bittium Tough Mobile(TM) 2 Tactical solution developed for military use has also aroused interest among the defense administration authorities of different countries, and several system pilots started during 2023.
Medical Business
A component shortage significantly slowed down the manufacturing and deliveries of medical technology products at the beginning of the year, and the production of Bittium Faros(TM) ECG devices was very limited for several months. In April-May, production volumes were increased, and the manufacturing of products continued with better capacity in May-June. The deliveries continued in the second quarter as planned, and the shortage of components eased towards the end of the year, as expected. In the second half of the year, the sales of medical technology devices outside of US market developed slower than estimated. The development of sales is affected by the insurance policies related to treatment reimbursement, which vary between different countries affecting the development pave of remote diagnostics market. In addition, entering new markets is affected by obtaining the medical device regulatory approvals, that may take up to more than a year depending on the approval.
Most product deliveries of Faros ECG devices were still made to the US customer
In the neurophysiology market, the piloting of Bittium BrainStatus(TM) EEG measuring devices in intensive care units continued in
Product deliveries of the home sleep apnea test and measurement solution Bittium Respiro(TM) continued in
Bittium is applying for a sales license for Respiro for the US market from the
Bittium is undergoing regulatory approval processes for its medical devices in several different countries. As necessary, the company will apply for a new European medical device approval (MDR) for its medical technology products already in production, which are approved according to the current standard (MDD). Decisions on applying for MDR approvals for existing products will be made on a business basis or if significant changes are made to the products that require a new approval process.
Engineering Services Business (previously Connectivity Solutions)
Despite the prevailing cost-saving pressure in the markets among our customers, Bittium's R&D services sales grew during 2023. The accelerating digitalization in various industries increased the need for design services. Especially in the Industrial IoT technology market, the growing need for cloud communication creates a need for companies to add wireless connectivity to their products. The increase of European companies focusing their R&D geographically on
Cooperation with customers continued well. While some customer projects were successfully completed, the company's customer portfolio expanded during the past year with several new customers in the transport, traffic, and professional tool markets, among others. Customer projects include, for example, the designing of a remotely controlled system and its connectivity solution, designing of connectivity parts for a traffic control system, and designing of measuring devices and their connectivity solutions intended for professional use.
Financial Performance in January-
Bittium's net sales in January-
The share of product-based net sales was
The share of services-based net sales was
R&D investments were
In the fourth quarter, there were non-recurring items of
EBITDA was
The operating result was
Resulting from the change negotiations and other cost measures taken, Bittium will achieve approximately
Cash flow from operating activities was
The equity ratio was 69.6 percent (69.7 percent).
Net gearing was 13.2 percent (3.0 percent).
The order backlog at the end of the year was
Half Year Figures
GROUP'S NET SALES AND OPERATING RESULT, MEUR | 2H/23 | 1H/23 | 2H/22 | 1H/22 |
Net sales | 39.6 | 35.6 | 41.4 | 41.0 |
Operating profit (loss) | -1.1 | -3.2 | 0.6 | -0.2 |
Result before taxes | -1.6 | -3.6 | 0.2 | -0.7 |
Result for the period | -1.8 | -3.6 | 0.9 | -0.6 |
DISTRIBUTION OF NET SALES BY PRODUCT AND SERVICES, MEUR aND % | 2H/23 | 1H/23 | 2H/22 | 1H/22 |
Product-based net sales | 24.4 | 21.4 | 30.2 | 27.2 |
61.6 % | 60.0 % | 72.9 % | 66.3 % | |
Services-based net sales | 15.2 | 14.2 | 11.2 | 13.8 |
38.4 % | 40.0 % | 27.1 % | 33.7 % | |
DISTRIBUTION OF PRODUCT-BASED | 2H/23 | 1H/23 | 2H/22 | 1H/22 |
Defense & Security products | 13.8 | 10.2 | 18.9 | 15.9 |
56.4 % | 47.9 % | 62.6 % | 58.5 % | |
Medical products | 10.7 | 11.1 | 11.3 | 11.3 |
43.6 % | 52.1 % | 37.4 % | 41.5 % | |
DISTRIBUTION OF SERVICES-BASED | 2H/23 | 1H/23 | 2H/22 | 1H/22 |
Engineering Services R&D services (previously Connectivity Solutions) | 8.1 | 8.9 | 7.2 | 8.0 |
53.2 % | 62.3 % | 64.0 % | 57.8 % | |
Other service-based net sales | 7.1 | 5.4 | 4.0 | 5.8 |
46.8 % | 37.7 % | 36.0 % | 42.2 % | |
DISTRIBUTION OF NET SALES BY MARKET AREAS, | 2H/23 | 1H/23 | 2H/22 | 1H/22 |
MEUR AND % | ||||
0.3 | 0.5 | 0.7 | 0.5 | |
0.9 % | 1.4 % | 1.8 % | 1.3 % | |
10.7 | 10.2 | 12.9 | 10.4 | |
27.0 % | 28.6 % | 31.1 % | 25.4 % | |
28.6 | 24.9 | 27.8 | 30.1 | |
72.1 % | 70.0 % | 67.1 % | 73.3 % | |
Quarterly Figures
GROUP'S NET SALES AND OPERATING RESULT, MEUR | 4Q/23 | 3Q/23 | 2Q/23 | 1Q/23 | 4Q/22 |
Net sales | 25.7 | 13.9 | 20.7 | 14.9 | 27.6 |
Operating profit (loss) | 1.0 | -2.1 | 0.3 | -3.5 | 3.0 |
Result before taxes | 0.7 | -2.4 | 0.1 | -3.7 | 2.8 |
Result for the period | 0.6 | -2.4 | 0.1 | -3.7 | 3.5 |
DISTRIBUTION OF NET SALES BY PRODUCT AND SERVICES, MEUR aND % | 4Q/23 | 3Q/23 | 2Q/23 | 1Q/23 | 4Q/22 |
Product-based net sales | 16.8 | 7.6 | 13.3 | 8.0 | 20.9 |
65.3 % | 54.9 % | 64.5 % | 53.7 % | 75.8 % | |
Services-based net sales | 8.9 | 6.3 | 7.3 | 6.9 | 6.7 |
34.7 % | 45.1 % | 35.5 % | 46.3 % | 24.2 % | |
DISTRIBUTION OF PRODUCT-BASED | 4Q/23 | 3Q/23 | 2Q/23 | 1Q/23 | 4Q/22 |
Defense & Security products | 11.4 | 2.3 | 5.8 | 4.5 | 15.8 |
68.2 % | 30.5 % | 43.2 % | 55.6 % | 75.5 % | |
Medical products | 5.3 | 5.3 | 7.6 | 3.6 | 5.1 |
31.8 % | 69.5 % | 56.8 % | 44.4 % | 24.5 % | |
DISTRIBUTION OF SERVICES-BASED | 4Q/23 | 3Q/23 | 2Q/23 | 1Q/23 | 4Q/22 |
Engineering Services R&D services (previously Connectivity Solutions) | 4.3 | 3.8 | 4.3 | 4.6 | 4.2 |
48.2 % | 60.4 % | 59.1 % | 65.8 % | 62.4 % | |
Other service-based net sales | 4.6 | 2.5 | 3.0 | 2.4 | 2.5 |
51.8 % | 39.6 % | 40.9 % | 34.2 % | 37.6 % | |
DISTRIBUTION OF NET SALES BY MARKET AREAS, MEUR aND % | 4Q/23 | 3Q/23 | 2Q/23 | 1Q/23 | 4Q/22 |
0.1 | 0.3 | 0.3 | 0.2 | 0.5 | |
0.4 % | 1.8 % | 1.3 % | 1.5 % | 1.8 % | |
6.0 | 4.7 | 6.9 | 3.3 | 7.6 | |
23.5 % | 33.6 % | 33.2 % | 22.2 % | 27.7 % | |
19.6 | 9.0 | 13.5 | 11.4 | 19.5 | |
76.2 % | 64.6 % | 65.5 % | 76.2 % | 70.6 % | |
Statement of Financial Position and Financing
The figures presented in the statement of financial position of
Non-current assets | 84.6 | 85.0 |
Current assets | 73.1 | 84.6 |
Total assets | 157.7 | 169.7 |
Share capital | 12.9 | 12.9 |
Other capital | 94.6 | 102.8 |
Total equity | 107.6 | 115.8 |
Non-current liabilities | 1.8 | 21.7 |
Current liabilities | 48.3 | 32.2 |
Total equity and liabilities | 157.7 | 169.7 |
Cash flow of the review period: | 1-12/2023 | 1-12/2022 |
+ profit of the period +/- Adjustment of accrual basis items | 5.1 | 11.7 |
+/- Change in net working capital | -3.0 | -2.9 |
- interest, taxes, and dividends | -0.9 | -0.8 |
= net cash from operating activities | 1.2 | 8.0 |
- net cash from investing activities | -7.7 | -8.0 |
- net cash from financing activities | -4.2 | -3.0 |
= net change in cash and cash equivalents | -10.7 | -3.0 |
The number of gross investments in the period under review was
The group's liquidity remained good despite that the business developed weaker than expected, and the cash flow was clearly negative. Inventories and accounts receivable were at a high level at the end of the financial year. Securing cash flow has not required special adjustment measures, and no significant changes have been identified in the credit risks of customer receivables.
Cash and other liquid assets at the end of the reporting period were
Bittium has a
Bittium follows a hedging strategy that has the objective to ensure the business margins in changing market circumstances by minimizing the influence of exchange rates. According to the hedging strategy principles, the net position in the currency is hedged when it exceeds the euro limit defined in the hedging strategy. The net position is determined based on accounts receivable, accounts payable, order book, and budgeted net currency cash flow.
Research and Development
Bittium continued to make significant investments to develop its own products and product platforms. In January-
The R&D investments focused mainly on developing medical technology products, developing tactical communication system and its products for the defense industry, and special terminal products and their related security software targeted for authorities.
The capitalized R&D investments are related to the investments in developing Bittium Tough SDR(TM) software-defined radio-based tactical radio product family, further development of tactical communication networks, and development of medical technology products.
R&D INVESTMENTS, (MEUR)
1-12 2023 | 1-12 2022 | |
12 months | 12 months | |
Total R&D investments | 20.2 | 22.3 |
Capitalized R&D investments | -7.2 | -6.6 |
Depreciations and impairment of R&D investments | 5.6 | 5.9 |
Cost impact on income statement | 18.6 | 21.5 |
R&D investments, % of net sales | 26.9 % | 27.0 % |
CAPITALIZED R&D INVESTMENTS IN BALANCE SHEET, MEUR | 1-12 2023 | 1-12 2022 |
12 months | 12 months | |
Balance sheet value in the beginning of the period | 48.8 | 48.1 |
Additions during the period | 7.2 | 6.6 |
Depreciations and impairment of R&D investments | -5.6 | -5.9 |
Balance sheet value at the end of the period | 50.5 | 48.8 |
On
Between 2016 and 2023, the company's two Business Segments, Defense & Security and Medical, have invested strongly in the development of their own products. This has maintained the company's high average annual R&D investment level of around
Personnel
The Bittium group employed an average of 601 people in January-
Changes in the Company's Management
As of
On
As of
On
As of
Changes in the Company's Management after the Review Period
On
On
As of
Share and Share Capital
The shares of
At the end of the financial period, the fully paid share capital of the Company entered into the
Share Buy-Back Program
The Board of Directors of
Acquisitions of own shares started on
On
MARKET VALUES OF SHARES (EUR) | 1-12/2023 12 months | 1-12/2022 12 months | |
Highest | 5.20 | 6.08 | |
Lowest | 3.31 | 3.47 | |
Average | 4.22 | 4.71 | |
At the end of period | 4.81 | 3.98 | |
Market value of the stock (MEUR) | 170.7 | 141.9 | |
Trading value of shares (MEUR) | 17.0 | 44.0 | |
Number of shares traded (1.000 pcs) | 4 021 | 9 346 | |
Related to average number of shares % | 11.3 | 26.2 | |
Incentive Systems
Management Share-Based Incentive Plan
On
The PSP consists of three annually commencing three-year performance share plans, PSP 2023-2025, PSP 2024-2026, and PSP 2025-2027, each with a one-year performance period, which is followed by the payment of the share reward and a two-year transfer restriction period. The commencement of the following two plans, PSP 2024-2026, and PSP 2025-2027, is, however, subject to a separate Board decision.
Eligible to participate in the first plan, PSP 2023-2025, are the members of Bittium's
The aggregate maximum number of shares to be paid based on the whole PSP is 750,000 shares (gross before the withholding of the applicable taxes). The aggregate gross value of the plan, estimated based on the volume-weighted average quotation of Bittium's share during the year 2022, is approximately
More information about the share-based incentive system can be found on the company's website at https://www.bittium.com.
A One-Off Matching Share Plan for the CEO of
On
The fixed Matching Share Plan was a one-off plan, in which the CEO was expected to purchase shares of
On
Other Incentive Systems
In addition, the company has a performance bonus system, the reward of which is paid based on the achievement of goals, as well as a profit-sharing plan, which applies to all personnel, excluding those covered by other short-term bonus systems.
Shareholders
Largest Shareholders, | Number of shares | % of shares | |
1. Veikkolainen Erkki | 1 822 112 | 5,1 % | |
2. | 1 501 300 | 4,2 % | |
3. Hulkko Juha | 1 419 370 | 4,0 % | |
4. Mutual Pension Insurance Company Varma | 1 365 934 | 3,8 % | |
5. Mutual Pension Insurance Company Ilmarinen | 1 296 529 | 3,6 % | |
6. Investment Fund Taaleritehdas Mikro Markka | 700 000 | 2,0 % | |
7. | 698 499 | 2,0 % | |
8. | 658 000 | 1,8 % | |
9. | 592 844 | 1,7 % | |
10. Mutual Pension Insurance Company Elo | 503 000 | 1,4 % |
At the end of
Flagging Notifications
During the review period, there were no changes related to ownership relationships that would have led to the notification obligation required by Section 2:9 of the Securities Market Act, i.e., the so-called flagging notification.
Decisions of the Annual General Meeting 2023
The Annual General Meeting of
Use of the Profits Shown on the Balance Sheet and Authorizing the Board of Directors to Decide on the Distribution of Dividend
In accordance with the proposal of the Board of Directors, the Annual General Meeting decided that, based on the balance sheet for the financial year
Election and Remuneration of the Members of the Board of Directors
The Annual General Meeting decided that the Board of Directors shall comprise five (5) members. Mr. Erkki Veikkolainen, Ms.
The Annual General Meeting resolved that the following monthly remuneration will be paid to the members of the Board of Directors: to the Chairman of the Board of Directors
50 percent of the total monthly remuneration of the members of the Board of Directors will be paid in a single instalment in
At its organizing meeting held on
Election and Remuneration of the Auditor
Authorizing the Board of Directors to Decide on the Repurchase of the Company's own Shares
The General Meeting authorized the Board of Directors to decide on the repurchase of the company's own shares as follows.
The number of own shares to be repurchased shall not exceed 3,500,000 shares, which corresponded to approximately 9.80 percent of all the shares in the company as at the date of the General Meeting. Based on the authorization, the company's own shares may only be repurchased with unrestricted equity. The company's own shares may be repurchased at a price formed in public trading on the date of the repurchase or otherwise at a price formed on the market. The Board of Directors decides how the shares will be repurchased. Among other things, derivatives may be used in the acquisition. Own shares may be repurchased otherwise than in proportion to the shareholdings of the shareholders (directed repurchase).
The authorization revokes the authorization given by the Annual General Meeting on
The authorization is valid until
Authorizing the Board of Directors to Decide on the Issuance of Shares as well as the Issuance of Special Rights Entitling to Shares
The General Meeting authorized the Board of Directors to decide on the issuance of shares and special rights entitling to shares referred to in Chapter 10 Section 1 of the Finnish Companies Act as follows.
The number of shares to be issued based on the authorization shall not exceed 3,500,000 shares in total, which corresponded to approximately 9.80 percent of all the shares in the company as at the date of the General Meeting. The Board of Directors decides on all the terms and conditions of the issuance of shares and special rights entitling to shares. The authorization concerns both the issuance of new shares and the transfer of the company's own shares. The issuance of shares and special rights entitling to shares may be carried out in deviation from the shareholders' pre-emptive subscription rights (directed issue).
The authorization revokes the authorization given by the Annual General Meeting on
The authorization is valid until
Proposal by the Board of Directors on the Use of the Profit Shown on the Balance Sheet and the Payment of the Dividend
On
The Board of Directors furthermore proposes that the Annual General Meeting would authorize the Board of Directors to decide, at its discretion, on the payment of an extraordinary dividend of
Significant Events after the Reporting Period
On
As of
On
Risks and Uncertainties
Bittium has identified several business, market, and finance-related risk factors and uncertainties that can affect the level of sales and profits.
The global disruption in the availability of electronic components and their price development caused changes in the company's ability to deliver products to its customers still in the beginning of 2023. The company continues to monitor the development of the situation and actively strives to ensure the availability of components required for product deliveries.
Market Risks
The global economic uncertainty may affect the demand for Bittium's services, solutions, and products and provide pressure on, e.g., pricing. In the short term, such uncertainty may affect, in particular, the utilization and chargeability levels and average hourly prices of R&D services. Growing political uncertainty may also affect the demand for Bittium's services, solutions, and products and the price competitiveness in the different geographical areas. Bittium is also increasingly exposed to legal, economic, political, and regulatory risks related to the countries in which its suppliers and other cooperation partners are located. Such risks may result in delays in deliveries or in situations where there will be no orders in the forecast quantities, currency losses, elevated costs, or litigations and related costs.
As Bittium's customer base includes, among others, companies operating in the field of telecommunication, defense, and other authorities, as well as companies delivering products to them and companies operating in the healthcare sector, the company is exposed to market changes in these industries.
A significant part of Bittium´s net sales accumulate from selling products and R&D services to defense and other authorities, as well as companies delivering products to them. Deviation in anticipated business development with such customer concentrations may translate as a significant deviation in Bittium's outlook, both in terms of net sales and operating result, during the ongoing financial period and thereafter.
Bittium seeks to expand its customer base in the longer term and reduce dependence on individual companies, and hence the company would thereby be mainly affected by the general business climate in the industries of the companies belonging to Bittium's customer base instead of the development of individual customer relationships. The more specific market outlook has been presented in this report in the "Market outlook" section.
Business Related Risks
Bittium's operative business risks are mainly related to the following items: uncertainties and short visibility on customers' product program decisions, their make or buy decisions and, on the other hand, their decisions to continue, downsize or terminate current product programs, execution and management of large customer projects, ramping up and down project resources, availability of personnel in labor markets, accessibility on commercially acceptable terms and, on the other hand, successful utilization of the most important technologies and components, competitive situation and potential delays in the markets, timely closing of customer and supplier contracts with reasonable commercial terms, delays in R&D projects, a realization of expected return on capitalized R&D investments, obsolescence of inventories and technology risks in product development causing higher than planned R&D costs, and risks related to the ramp-up of product manufacturing. Revenues expected to come from either existing or new products and customers include normal timing risks. Bittium has certain significant customer projects, and deviation in their expected continuation could also result in significant deviations in the company's outlook. In addition, there are typical industry warranty and liability risks involved in selling Bittium´s services, solutions, and products.
Bittium's product delivery business model faces such risks as high dependency on actual product volumes, timing risks, and potential delays in the markets. The above-mentioned risks may manifest themselves as lower amounts of products delivered or higher costs of production, and ultimately, as lower profit. Bringing Bittium's products to international defense and other authorities' markets may take longer than anticipated because the projects are typically long, and the purchasing programs are prepared in the lead of national governments and within the available financing. Once a supplier has been selected, product deliveries are typically executed over several years. Access to the medical device market requires and may be delayed due to required regulatory approvals.
Some of Bittium's businesses operate in industries that are heavily reliant on patent protection and therefore face risks related to the management of intellectual property rights, on the one hand, related to accessibility on commercially acceptable terms of certain technologies in Bittium's products and services, and on the other hand, related to an ability to protect technologies that Bittium develops or licenses from others from claims that third parties' intellectual property rights are infringed. Additionally, parties outside of the industries operate actively to protect and commercialize their patents and therefore in their part increase the risks related to the management of intellectual property rights. At worst, claims that third parties' intellectual property rights are infringed could lead to substantial liabilities for damages. In addition, the progress of the customer projects and delivery capability may also be affected by potential challenges in global accessibility of key technologies and components on commercially acceptable terms, as well as by the acceptance of the necessary export licenses. The company changed its name to
Financing Risks
Global economic uncertainty may lead to payment delays, increase the risk of credit losses, and weaken the availability and terms of financing, including increased interest rates. To fund its operations, Bittium relies mainly on income from its operative business and may from time to time seek additional financing from selected financial institutions. Bittium has a
These agreements include customary covenants related to, among other things, equity ratio, transferring property, and pledging. There is no assurance that additional financing will not be needed in case of investments, networking capital needs, or clearly weaker than expected development of Bittium's businesses. Customer dependency in some parts of Bittium's business may translate as an accumulation of risk with respect to outstanding receivables and ultimately with respect to credit losses.
Sustainability and Corporate Responsibility
Bittium is committed to responsible and sustainable business through its sustainability program. The sustainability program is based on the company's strategy, values, stakeholders' expectations, and megatrends in the operating environment. General uncertainty in the world has grown significantly over the last few years, creating constant uncertainty in the market. In such a time, responsibility and safety are important values in all activities.
Bittium focuses on three central themes in its sustainability work: personnel, customers and information security, and the environment. Ethical principles and responsible business practices are the basis of all activities. Sustainability is part of Bittium's organizational culture and way of working. The company identifies and manages liability-related risks as part of the company's risk management, which emphasizes the role of the company's management team and the Board of Directors in implementing measures in daily operations.
The company has started preparing for EU sustainable development reporting. In response to the effects of the CSRD (Corporate Sustainable Reporting Directive) regarding product-specific information, the company has developed environmental information management during the whole product's life cycle. This helps to prepare for future life cycle data reporting requirements, for example, for the digital product passport. In 2024, the company will carry out a double materiality assessment, based on which the company will update its sustainability program.
Bittium's Sustainability Report 2023 will be published as part of the Annual Report on
More information about Bittium's sustainability can be found on the company's internet pages at www.bittium.com.
Market Outlook
Bittium's customers operate in various industries, each having its own industry-specific factors driving the demand. A common factor creating demand among the whole customer base is the growing need for higher quality and secure data transfer. Due to the technology competencies accrued over time and the long history of developing mobile communication solutions, Bittium is in a good position to offer customized connectivity solutions to its customers. Over thirty years of experience and extensive competence in measuring biosignals also act as a basis for medical technology solutions.
The world's geopolitical situation, problems in logistics chains, inflation and deteriorating economic development create uncertainty in the market outlook.
The factors affecting the demand for Bittium's products and services are described below:
Defense, Public Safety, and Information Security Markets
- In the defense market's tactical communications sector, the governments' defense forces and other authorities need networks that troops, who are more and more constantly on the move, can use and transfer growing amounts of data securely. This creates demand for Bittium Tactical Wireless IP Network(TM) (
TAC WIN ) broadband network, Bittium Tough SDR(TM) handheld and vehicular radios, and for other Bittium's IP-based (Internet Protocol) tactical communication solutions that fulfill the needs of data transfer of moving troops and individual soldiers. Russia 's war of aggression againstUkraine has also increased the defense budgets of various countries and has had a favorable effect on demand in the defense market. In the first phase, the increased defense appropriations have been allocated mainly to consumables. In the future, the increased budgets will also be aimed at the modernization and development projects of the defense forces of different countries, which may have a positive effect on the demand for Bittium's tactical communication solutions.Finland 'sNATO membership is expected to have a positive effect on the demand for Bittium's defense and official products, especially amongNATO member countries.- Bittium continues its efforts to export tactical communications' products to international markets and aims to get new international customers during 2024. The long sales cycles of the defense industry affect sales development and forecasting.
- The use of LTE technology, smartphones, and applications continue to increase in special verticals, such as public safety, creating demand for Bittium Tough Mobile(TM) secure smartphone and other customized special terminals based on Bittium's own product platform, as well as for secure software solutions. The awareness of mobile security risks is growing, and the interest in secure mobile devices and software solution is increasing. The sales of secure terminal products are expected to develop moderately according to the nature of public safety markets.
Telecommunication and Digitalization
- In mobile telecommunications, the implementation of 5G is accelerating. There is a wide range of frequencies allocated for the 5G technology, thus creating the need to develop multiple products to cover the market and creating demand for R&D services for the development of product variants. Different needs for satellite communication solutions increase the demand for Bittium's product development know-how with the addition of new players to the traditional supplier network. The demand for Bittium's R&D services is also increased by the need to develop new devices utilizing 5G technology.
- As digitalization evolves, secure IoT (Internet of Things) has become a significant development area in almost every industry. The increasing need for companies to digitalize their operations, collect data wirelessly, and transfer it to the internet and cloud services generate a need for Bittium's services and customized solutions. To this end, the market needs secure devices, for both demanding industrial and leisure applications, which collect information from the sensors used by the device and create a reliable wireless connection to the Internet and cloud services. The deployment of 5G and IoT radio technologies are expanding, and the number of digitalized devices increases continuously. The devices will also feature new and more advanced features that will create demand for design services. Therefore, the integration of different systems and technologies plays an important role in enabling complete digitalization services. There are several learning systems and devices under development that use different kinds of artificial intelligence (AI) technologies to ease and speed up the processing of large data amounts.
-
Focusing the R&D work of Western companies to
Europe , can be seen as an increase in demand for Bittium's R&D services, especially in terms of device design. - Demand for R&D services is affected by customers' cost-saving pressures in various industry segments.
Medical ECG, EEG, and Sleep Apnea Remote Monitoring Market
- The medical technology market is undergoing significant development in patient care, especially outside hospitals. There is an increasing focus on the prevention of diseases and health problems through early diagnosis and the discharge of patients at an earlier stage to reduce hospital and treatment days. These actions significantly increase efficiency in health care processes and lower costs.
- A prerequisite for early hospital discharge is the enabling of accurate and precise follow-up and measurement opportunities in home conditions, which would be enabled through remote monitoring. Remote monitoring and remote diagnostics also enable specialists' diagnoses regardless of time and place. Also, evolving artificial intelligence-based algorithms become more common in supporting physicians in making diagnoses. Remote monitoring and remote diagnostics make it possible and faster to obtain more accurate diagnoses, which, in turn, speeds up the start of the right kind of treatment. The market change will enable several new providers to join the overall care service chain, without compromising the quality of specialist services.
- For measuring biosignals, as well as remote monitoring and diagnostics, Bittium provides its Bittium Faros(TM) product family for remote ECG monitoring, Bittium BrainStatus(TM) for measuring the electrical activity of the brain, home sleep apnea test solution Bittium Respiro(TM), and different kinds of diagnostics software offered by Bittium.
-
Regulation by the authorities has a strong role in bringing medical devices to the market. The requirements vary for different countries and the processes are long-term. Bittium has several regulatory approvals for its medical devices in progress in different countries. The company has achieved medical device approval of the new MDR standard level in the EU region for the Bittium Respiro(TM) product family that measures sleep apnea. Bittium has also applied for a medical device sales license for the Respiro product family from the
US Food and Drug Administration (FDA). The schedule is affected by additional clinical studies determined by the FDA authority. The estimated duration of the additional work is at least one year.
Financial Calendar 2024
In 2024,
- Financial Statement Bulletin 2023:
February 9, 2024 , at 8.00 am (CET+1) -
Business Review January-
March 2024 :April 26, 2024 , at 8.00 am (CET+1) -
Half Year Financial Report January-
June 2024 :August 9, 2024 , at 8.00 am (CEST+1) -
Business Review January-
September 2024 :October 18, 2024 , at 8.00 am (CET+1)
The actual general meeting is planned to be held on
Invitation to a Press Conference
Bittium will hold a webcast regarding the Financial Statements 2023 for media, analysts, and institutional investors on
Link to the webcast: https://bittium.videosync.fi/q4-2023
Recording the webcast and the presentation will be available after the conference on Bittium's website at www.bittium.com/investors.
Oulu,
The Board of Directors
Further Information:
Johan Westermarck
CEO
Tel. +358 40 344 2789 (group communications)
Vice President, Communications & Sustainability
Tel. +358 40 344 2789
Distribution:
Nasdaq Helsinki
Major media
Bittium Corporation Condensed Financial Statements and Notes January - December 2023
The consolidated financial statement has been prepared in accordance with International Financial Reporting Standards (IFRS). The Financial Statement of 2023 has been audited and the auditing report has been dated on
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (MEUR) Continuing operations | 1-12/2023 12 months | 1-12/2022 12 months | |
75.2 | 82.5 | ||
Other operating income | 3.1 | 2.7 | |
Work performed by the undertaking for its own purpose and capitalized | 0.3 | 0.5 | |
Raw materials | -20.2 | -20.2 | |
Personnel expenses | -39.1 | -39.5 | |
Depreciation | -9.5 | -10.7 | |
Other operating expenses | -14.2 | -14.8 | |
Share of results of the associated companies | 0.0 | -0.2 | |
OPERATING PROFIT (LOSS) | -4.3 | 0.3 | |
Financial income and expenses | -1.0 | -0.8 | |
PROFIT BEFORE TAX | -5.3 | -0.4 | |
Income tax | -0.2 | 0.7 | |
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS | -5.4 | 0.3 | |
Discontinued operations | |||
Profit for the year from discontinued operations | |||
PROFIT FOR THE PERIOD | -5.4 | 0.3 | |
Other comprehensive income: | |||
Items that may be reclassified subsequently to the statement of income | |||
Exchange differences on translating foreign operations | -0.1 | 0.2 | |
Other comprehensive income for the period total | -0.1 | 0.2 | |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -5.5 | 0.5 | |
Profit for the year attributable to | |||
Equity holders of the parent | -5.4 | 0.3 | |
Total comprehensive income for the period attributable to | |||
Equity holders of the parent | -5.5 | 0.5 | |
Earnings per share from continuing operations, EUR | |||
Basic earnings per share | -0.153 | 0.007 | |
Diluted earnings per share | -0.153 | 0.007 | |
Earnings per share from discontinued operations, EUR | |||
Basic earnings per share | |||
Diluted earnings per share | |||
Earnings per share from continuing and discontinued operations, EUR | |||
Basic earnings per share | -0.153 | 0.007 | |
Diluted earnings per share | -0.153 | 0.007 | |
Average number of shares, 1000 pcs | 35 609 | 35 702 | |
Average number of shares, diluted, 1000 pcs | 35 609 | 35 702 | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (MEUR) | |||
ASSETS | |||
Non-current assets | |||
Property, plant, and equipment | 18.2 | 19.7 | |
| 5.8 | 5.8 | |
Intangible assets | 51.2 | 50.1 | |
Other financial assets | 1.2 | 1.1 | |
Other long-term receivables | 0.7 | 0.9 | |
Deferred tax assets | 7.4 | 7.4 | |
Non-current assets total | 84.6 | 85.0 | |
Current assets | |||
Inventories | 26.6 | 24.2 | |
Trade and other receivables | 38.1 | 41.4 | |
Financial assets at fair value through profit or loss | 0.0 | 5.7 | |
Cash and short-term deposits | 8.3 | 13.3 | |
Current assets total | 73.1 | 84.6 | |
TOTAL ASSETS | 157.7 | 169.7 | |
EQUITY AND LIABILITIES | |||
Equity attributable to equity holders of the parent | |||
Share capital | 12.9 | 12.9 | |
Invested non-restricted equity fund | 26.0 | 26.0 | |
Translation difference | 1.3 | 1.3 | |
Retained earnings | 67.4 | 75.6 | |
Total equity | 107.6 | 115.8 | |
Non-current liabilities | |||
Deferred tax liabilities | 0.1 | 0.2 | |
Provisions | |||
Interest-bearing liabilities | 1.5 | 21.3 | |
Other non-current liabilities | 0.2 | 0.2 | |
Advances received | |||
Non-current liabilities total | 1.8 | 21.7 | |
Current liabilities | |||
Trade and other payables | 22.4 | 26.4 | |
Provisions | 4.8 | 4.7 | |
Interest-bearing loans and borrowings | 21.1 | 1.1 | |
Current liabilities total | 48.3 | 32.2 | |
Total liabilities | 50.1 | 53.9 | |
TOTAL EQUITY AND LIABILITIES | 157.7 | 169.7 | |
CONSOLIDATED STATEMENT OF CASH FLOWS (MEUR) | 1-12/2023 12 months | 1-12/2022 12 months | |
CASH FLOW FROM OPERATING ACTIVITIES | |||
Profit for the year from continuing operations | -5.4 | 0.3 | |
Profit for the year from discontinued operations | |||
Adjustment of accrual basis items | 10.6 | 11.5 | |
Change in net working capital | -3.0 | -2.9 | |
Interest paid on operating activities | -1.4 | -0.9 | |
Interest received from operating activities | 0.5 | 0.1 | |
Income taxes paid | -0.1 | -0.0 | |
NET CASH FROM OPERATING ACTIVITIES | 1.2 | 8.0 | |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Acquisition of business unit, net of cash acquired | |||
Purchase of property, plant and equipment | -0.3 | -1.0 | |
Purchase of intangible assets | -7.4 | -7.1 | |
Purchase of investments/associated companies | |||
Sale of property, plant and equipment | |||
Sale of intangible assets | |||
NET CASH FROM INVESTING ACTIVITIES | -7.7 | -8.0 | |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Borrowings | |||
Repayment of borrowing | |||
Payment of finance liabilities | -1.3 | -1.4 | |
Dividend paid and repayment of capital | -1.8 | -1.4 | |
Purchases of own shares | -1.0 | -0.1 | |
NET CASH FROM FINANCING ACTIVITIES | -4.2 | -3.0 | |
NET CHANGE IN CASH AND CASH EQUIVALENTS | -10.7 | -3.0 | |
Cash and cash equivalents at beginning of period | 19.0 | 22.0 | |
Cash and cash equivalents at end of period | 8.3 | 19.0 | |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (MEUR) |
A = Share capital |
B = Invested non-restricted equity fund |
C = Translation difference |
D = Retained earnings |
E = Non-controlling interests |
F = Total equity |
A | B | C | D | E | F | |
Shareholders equity on | 12.9 | 26.0 | 1.1 | 76.8 | 116.8 | |
Comprehensive income for the period | ||||||
Profit for the period | 0.3 | 0.3 | ||||
Exchange differences on translating foreign operations | 0.2 | 0.2 | ||||
Total comprehensive income for the period | 0.2 | 0.3 | 0.5 | |||
Transactions between the shareholders | ||||||
Distribution of dividends | -1.4 | -1.4 | ||||
Purchases of own shares | -0.1 | -0.1 | ||||
Share-related compensation | 0.1 | 0.1 | ||||
Total transactions between the shareholders | -1.5 | -1.5 | ||||
Other changes | -0.0 | -0.0 | ||||
Shareholders equity on | 12.9 | 26.0 | 1.3 | 75.6 | 115.8 | |
A | B | C | D | E | F | |
Shareholders equity on | 12.9 | 26.0 | 1.3 | 75.6 | 115.8 | |
Comprehensive income for the period | ||||||
Profit for the period | -5.4 | -5.4 | ||||
Exchange differences on translating foreign operations | -0.1 | -0.1 | ||||
Total comprehensive income for the period | -0.1 | -5.4 | -5.5 | |||
Transactions between the shareholders | ||||||
Distribution of dividends | -1.8 | -1.8 | ||||
Purchases of own shares | -1.0 | -1.0 | ||||
Share-related compensation | 0.2 | 0.2 | ||||
Total transactions between the shareholders | -2.7 | -2.7 | ||||
Other changes | -0.0 | -0.0 | ||||
Shareholders equity on | 12.9 | 26.0 | 1.3 | 67.4 | 107.6 | |
NOTES TO FINANCIAL STATEMENTS
ACCOUNTING PRINCIPLES FOR THE FINANCIAL STATEMENT:
The consolidated financial statement has been prepared in accordance with International Financial Reporting Standards (IFRS).
ALTERNATIVE PERFORMANCE MEASURES
In addition to the key ratios defined in the IFRS standards, Bittium may use some alternative performance measures in the financial reporting.
IAS 1 Presentation of Financial Statements standard does not specify the concept of operating profit. Bittium has defined the operating profit as follows: The operating profit is the net of turnover added with other operating income, subtracted with the raw materials and external services, adjusted with the change in stocks and work performed by the undertaking for its own purpose, subtracted with the personnel expenses, depreciation, and possible reductions in value as well as other business expenses. All other items are presented below the operating profit. The share of profits in associated companies, currency changes and changes in derivative instruments are included in the operating profit if they arise from the business; otherwise, they are presented in the financial income and expenses.
The definitions of the other common alternative performance measures are listed below.
EBITDA = Operating profit + depreciations
Net gearing % = Interest-bearing liabilities - cash and deposits and short-term investments x 100
Total equity
Equity per share = Equity attributable to equity holders of the parent
Share issue adjusted number of the shares at the end of the period
SEGMENT-INFORMATION (MEUR)
NET SALES OF GEOGRAPHICAL AREAS (MEUR) | 1-12/2023 12 months | 1-12/2022 12 months | |
Net sales | |||
Europe | 53.5 | 57.9 | |
Americas | 20.9 | 23.3 | |
Asia | 0.9 | 1.3 | |
Net sales total | 75.2 | 82.5 | |
RELATED PARTY TRANSACTIONS | 1-12/2023 12 months | 1-12/2022 12 months | |
Employee benefits for key management and stock options expenses total, continuing operations | 1.8 | 1.6 | |
SHARE-BASED REMUNARATION OF THE MANAGEMENT |
The Board of Directors of
Form of the reward | Shares |
Payment date | |
Total expenses of the reward, EUR million | 0.1 |
Execution | In shares |
The Board of Directors of
PSP 2023-2025 | |
Form of the reward | Shares |
Grant date | |
Total amount of the shares at the most | 250 000 |
Share price at the grant date, EUR | 4 365 |
Total expenses of the reward at the most, EUR million | 1.1 |
Execution | In shares and in cash |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME BY QUARTER (MEUR) Continuing operations | 10-12/2023 3 months | 7-9/2023 3 months | 4-6/2023 3 months | 1-3/2023 3 months | 10-12/2022 3 months | |
NET SALES | 25.7 | 13.9 | 20.7 | 14.9 | 27.6 | |
Other operating income | 0.9 | 0.6 | 0.8 | 0.8 | 0.9 | |
Work performed by the undertaking for its own purpose and capitalized | 0.1 | 0.0 | 0.1 | 0.1 | 0.0 | |
Raw materials | -8.7 | -3.4 | -5.0 | -3.1 | -8.2 | |
Personnel expenses | -10.6 | -8.2 | -10.1 | -10.2 | -9.9 | |
Depreciation | -2.3 | -2.4 | -2.3 | -2.5 | -2.9 | |
Other operating expenses | -4.1 | -2.7 | -3.8 | -3.6 | -4.7 | |
Share of profits in associated companies | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
OPERATING PROFIT (LOSS) | 1.0 | -2.1 | 0.3 | -3.5 | 3.0 | |
Financial income and expenses | -0.3 | -0.3 | -0.2 | -0.2 | -0.1 | |
PROFIT BEFORE TAX | 0.7 | -2.4 | 0.1 | -3.7 | 2.8 | |
Income tax | -0.2 | 0.0 | -0.0 | -0.0 | 0.7 | |
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS | 0.6 | -2.4 | 0.1 | -3.7 | 3.5 | |
Discontinued operations | ||||||
Profit for the period from discontinued operations | ||||||
PROFIT FOR THE PERIOD | 0.6 | -2.4 | 0.1 | -3.7 | 3.5 | |
Other comprehensive income | -0.1 | 0.1 | 0.0 | -0.1 | -0.5 | |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 0.4 | -2.3 | 0.1 | -3.8 | 3.0 | |
Profit for the period attributable to: | ||||||
Equity holders of the parent | 0.6 | -2.4 | 0.1 | -3.7 | 3.5 | |
Total comprehensive income for the period attributable to: | ||||||
Equity holders of the parent | 0.4 | -2.3 | 0.1 | -3.8 | 3.0 | |
CONSOLIDATED STATEMENT OF CASH FLOWS BY QUARTER | 10-12/2023 3 months | 7-9/2023 3 months | 4-6/2023 3 months | 1-3/2023 3 months | 10-12/2022 3 months | |
Net cash from operating activities | 0.6 | 5.2 | -5.7 | 1.1 | 0.1 | |
Net cash from investing activities | -1.6 | -1.4 | -2.3 | -2.4 | -2.4 | |
Net cash from financing activities | -0.4 | -0.9 | -2.5 | -0.4 | -0.3 | |
Net change in cash and cash equivalents | -1.3 | 2.9 | -10.6 | -1.6 | -2.7 |
FINANCIAL PERFORMANCE RELATED RATIOS | 1-12/2023 12 months | 1-12/2022 12 months | |
STATEMENT OF COMPREHENSIVE INCOME (MEUR) | |||
Net sales | 75.2 | 82.5 | |
Operating profit (loss) | -4.3 | 0.3 | |
Operating profit (loss). % of net sales | -5.7 | 0.4 | |
Profit before taxes | -5.3 | -0.4 | |
Profit before taxes. % of net sales | -7.0 | -0.5 | |
Profit for the period from continuing operations | -5.4 | 0.3 | |
PROFITABILITY AND OTHER KEY FIGURES | |||
Interest-bearing net liabilities. (MEUR) | 14.2 | 3.4 | |
Net gearing. -% | 13.2 | 3.0 | |
Equity ratio. % | 69.6 | 69.7 | |
Gross investments. (MEUR) | 9.4 | 9.5 | |
Average personnel during the period. continuing operations | 601 | 641 | |
Personnel at the period end. continuing operations | 526 | 625 | |
AMOUNT OF SHARE ISSUE ADJUSTMENT (1.000 pcs) | |||
At the end of period | 35 486 | 35 702 | |
Average for the period | 35 608 | 35 702 | |
Average for the period diluted with stock options | 35 608 | 35 702 | |
STOCK-RELATED FINANCIAL RATIOS (EUR) | 1-12/2023 12 months | 1-12/2022 12 months | |
Earnings per share from continuing operations. EUR | |||
Basic earnings per share | -0,153 | 0.007 | |
Diluted earnings per share | -0,153 | 0.007 | |
Earnings per share from discontinued operations. EUR | |||
Basic earnings per share | |||
Diluted earnings per share | |||
Earnings per share from continuing and discontinued operations. EUR | |||
Basic earnings per share | -0.153 | 0.007 | |
Diluted earnings per share | -0.153 | 0.007 | |
Equity *) per share | 3.03 | 3.24 | |
*) Equity attributable to equity holders of the parent | |||
MARKET VALUES OF SHARES (EUR) | 1-12/2023 12 months | 1-12/2022 12 months | |
Highest | 5.20 | 6.08 | |
Lowest | 3.31 | 3.47 | |
Average | 4.22 | 4.71 | |
At the end of period | 4.81 | 3.98 | |
Market value of the stock. (MEUR) | 170.7 | 141.9 | |
Trading value of shares. (MEUR) | 17.0 | 44.0 | |
Number of shares traded. (1.000 pcs) | 4 021 | 9 346 | |
Related to average number of shares % | 11.3 | 26.2 | |
SECURITIES AND CONTINGENT LIABILITIES (MEUR) | |||
AGAINST OWN LIABILITIES | |||
Floating charges | |||
Mortgages are pledged for liabilities totaled | |||
Guarantees | 3.0 | 3.0 | |
Rental liabilities | |||
Falling due in the next year | 0.1 | 0.1 | |
Falling due after one year | |||
Other contractual liabilities | |||
Falling due in the next year | 2.3 | 2.5 | |
Falling due after one year | 0.9 | 0.7 | |
Material purchase commitments | 8.2 | 13.9 | |
NOMINAL VALUE OF CURRENCY DERIVATIVES (MEUR) | |||
Foreign exchange forward contracts | |||
Market value | 0.0 | 0.0 | |
Nominal value | 2.2 | 1.4 | |
https://news.cision.com/bittium-oyj/r/bittium-corporation-s-financial-statement-bulletin-january-december-2023,c3925482
https://mb.cision.com/Main/13623/3925482/2593419.pdf
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