Stock exchange release
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Bittium Corporation Half-Year Financial Report January-
Second Quarter
Unless otherwise mentioned, the figures in brackets refer to the corresponding period in the previous year.
Summary April-
- Net sales were
EUR 22.7 million (EUR 22.6 million ), representing a 0.2 percent increase year-on-year. - The share of product-based net sales was
EUR 15.8 million (EUR 16.7 million ), representing 69.7 percent of the net sales. The share of Medical Technologies products wasEUR 7.7 million (EUR 5.6 million ) and the share of Defense & Security products wasEUR 8.2 million (EUR 11.2 million ). - The share of services-based net sales was
EUR 6.9 million (EUR 5.9 million ), representing 30.3 percent of the net sales. The share of Connectivity Solutions R&D services wasEUR 3.7 million (EUR 3.8 million ). - EBITDA was
EUR 3.4 million (EUR 3.2 million ). - The operating result was
EUR 0.8 million (EUR 0.7 million ). - The result for the period was
EUR 0.6 million and earnings per share wereEUR 0.016 (the result for the periodEUR 0.5 million and earnings per shareEUR 0.015 ). - Cash flow from operating activities was
EUR 2.9 million (EUR 2.6 million ). - Net cash flow was
EUR -1.0 million (EUR -1.1 million ).
Summary January-
- Net sales were
EUR 41.0 million (EUR 39.7 million ), representing a 3.4 percent increase year-on-year. - The share of product-based net sales was
EUR 27.2 million (EUR 27.9 million ), representing 66.3 percent of the net sales. The share of Medical Technologies products wasEUR 11.3 million (EUR 13.5 million ) and the share of Defense & Security products wasEUR 15.9 million (EUR 14.5 million ). - The share of services-based net sales was
EUR 13.8 million (EUR 11.8 million ), representing 33.7 percent of the net sales. The share of Connectivity Solutions R&D services wasEUR 8.0 million (EUR 7.8 million ). - EBITDA was
EUR 5.0 million (EUR 4.2 million ). - The operating result was
EUR -0.2 million (EUR-0.7 million ). - The result for the period was
EUR -0.6 million and earnings per share wereEUR -0.018 (the result for the periodEUR -1.0 million and earnings per shareEUR -0.029 ). - Cash flow from operating activities was
EUR 6.0 million (EUR 1.2 million ). - Net cash flow was
EUR 0.0 million (EUR -5.8 million ). - The order backlog was
EUR 29.6 million (EUR 29.5 million onDecember 31 , 2021).
| GROUP (MEUR) | 4-6/2022 | 4-6/2021 | 1-6/2022 | 1-6/2021 |
| 3 months | 3 months | 6 months | 6 months | |
| 22.7 | 22.6 | 41.0 | 39.7 | |
| Change of net sales, % | 0.2 % | -10.4 % | 3.4 % | -6.8 % |
| EBITDA | 3.4 | 3.2 | 5.0 | 4.2 |
| EBITDA, % of net sales | 15.2 % | 14.3 % | 12.3 % | 10.6 % |
| OPERATING PROFIT / LOSS | 0.8 | 0.7 | -0.2 | -0.7 |
| Operating profit / loss, % of net sales | 3.5 % | 3.3 % | -0.6 % | -1.8 % |
| RESULT OF THE PERIOD FROM CONTINUING OPERATIONS | 0.6 | 0.5 | -0.6 | -1.0 |
| CASH AND OTHER LIQUID ASSETS | 22.0 | 18.9 | 22.0 | 18.9 |
| EQUITY RATIO (%) | 70.9 % | 71.3 % | 70.9 % | 71.3 % |
| EARNINGS PER SHARE (EUR) | 0.016 | 0.015 | -0.018 | -0.029 |
Bittium’s CEO
The second quarter development was according to our expectations. The net sales resulted in
The second quarter operating result was
The worldwide disruption in the availability of electronic components continues to still have a significant impact on the development of product business revenue. The general price increase of components and the additional material costs of component purchases from the spot market affect the development of the operating result. To improve the situation, we have started internal development projects in which we replace the hard-to-find components used in our products with those with better availability.
The war in
In the Defense & Security business area, we released two new products in the second quarter of the year. The product range of tactical communication was expanded with the new Bittium Tough VoIP Field Phone(TM) 2 device, which is suitable for use on the battlefield, in vehicles, and in command posts due to its versatile connectivity features, accessories, and power supply options. We expanded the secure Bittium Tough Mobile(TM) smartphone product family with the new Bittium Tough Mobile(TM) 2 Tactical solution, which is targeted at the defense market. The comprehensive solution enabling the soldier’s mobile communication can be connected either to the Bittium Tough SDR Handheld(TM) radio or to third-party tactical radios.
We continued the deliveries of tactical communication products to the Finnish Defence Forces; however, the shortage of components was slowing down the delivery schedule. We received also orders for Bittium Tactical Wireless IP Network(TM) (
The field tests of Bittium Tough SDR(TM) radios and their waveforms continued, and the Finnish Defence Forces is developing an operational capability of use for the large-scale deployment of the radios. The Defence Forces ordered the development of a narrowband waveform for the future use of Bittium Tough SDR radios. The waveform development work will be multi-year.
In the international defense and security markets, we continued product deliveries of tactical communication system products as well as integration and testing work with our customers in
In June, the multinational joint venture a4ESSOR, which develops secure European software radio technology, successfully completed interoperability tests with the new ESSOR High Data Rate Waveform. We participated in interoperability tests with our new Bittium Tough SDR(TM) radios. The performance of the ESSOR waveform proved to be excellent and tests showed that it can handle several operational usage scenarios.
The numerous data security attacks detected recently have increased the interest of government actors in data secure mobile systems. Demand for Bittium Tough Mobile(TM) security phones and security-related software has continued to grow.
The medical technology market has recovered from the coronavirus pandemic. The demand for Bittium Faros(TM) EKG measuring devices increased, but the component shortage significantly slowed down both the reception of new orders and product deliveries. Most of the product deliveries were made to Preventice, a customer offering remote monitoring services in the US ECG market.
We expanded the Bittium Faros product family with the new Bittium Faros(TM) 180L ECG measuring device, which measures the ECG continuously for at least 14 days with one battery charge. The solution enables earlier discharge of patients and even better conditions to quickly detect and react to possible arrhythmias.
We have several medical device approvals in progress in different countries. The new European product safety regulation for medical devices, the MDR (Medical Device Regulation), has caused a backlog of quality system audits and device approvals and thus a significant delay in application turnaround times. Our operations already comply with the MDR requirements, but despite this, the backlog is also visible in the turnaround times for applications for our devices. We also started the process to apply for FDA (
In the neurophysiology market, the pilots of the Bittium BrainStatus(TM) EEG measurement devices progressed well, and new pilots started.
In the second quarter, the net sales of R&D services remained at the same level as in the previous year. In the Connectivity Solutions business, the market is recovering from the coronavirus pandemic, and customer meetings were held as usual, which has positively affected the business and the start of projects. We won new customers and started customer projects for the development of embedded systems.
In May, we introduced a new Cellular IoT solution to the market, which offers IoT devices direct connectivity to cloud services over mobile networks. The solution is based on software modules, the reuse of which improves the competitiveness of Bittium’s design services, enabling the implementation of connectivity projects for the customer faster and more cost-effectively.
The availability of labor in the market is still a challenge. In particular, there are too few software experts compared to the demand, and the competition for employees has increased the mobility of the workforce.
Despite the uncertainties in the market, we made good progress in implementing our strategy. We have strengthened and focused our organization and focused on building international sales, continuously improving business, and ensuring customer satisfaction and quality.
Outlook for 2022
The world’s geopolitical situation, problems in logistics chains, inflation, and deteriorating economic development create uncertainty in future outlook. About 70 percent of Bittium’s net sales accumulates from products and related systems. The global disruption in the availability of electronics components still causes significant uncertainty and poor visibility in the development of Bittium’s product-based net sales and operating result by the end of 2022.
Bittium expects the net sales of 2022 to be at the same level as in the previous year (
More information about Bittium’s market outlook, risks, and uncertainties are presented in this report in the sections “Market Outlook” and “Risks and Uncertainties” as well as on the company’s internet pages at www.bittium.com.
Market Environment and Business Development in January-
Defense & Security Business Area
The world´s political situation changed significantly in February when
In April, the tactical communication product range was expanded with the new Bittium Tough VoIP Field Phone(TM) 2. It is a new generation VoIP phone that enables reliable communication in demanding operating environments. Designed for military use, the Field Phone 2 is suitable for use on the battlefield, in vehicles, and command posts due to its versatile connectivity features, accessories, and power supply options. Bittium Tough VoIP Field Phone 2 complements the existing Tough VoIP product family, responding to customers´ need for a new generation field phone designed for demanding military use.
Deliveries of products needed for tactical communication to the Finnish Defence Forces continued, however, the shortage of components had a slowing effect on the delivery schedule. Bittium received the orders in accordance with the framework agreements for both Bittium Tactical Wireless IP Network(TM) (
Field testing of Bittium Tough SDR(TM) radios and their waveforms continued, and the Finnish Defence Forces is developing an operational capability of use for the large-scale deployment of the radios. In April, the Finnish Minister of Defense authorized the
In the international defense and authority markets, Bittium continued product deliveries of tactical communication system products as well as integration and testing to its customers in
In June, the multinational joint venture a4ESSOR, which develops secure European software radio technology, successfully completed interoperability tests with its new ESSOR High Data Rate Waveform. The testing was performed in
The numerous data security attacks detected recently have increased the interest of government actors in data secure mobile communication systems. Demand for Bittium Tough Mobile(TM) security phones and security-related software has continued to grow. The Data Security classification of the phone and the related system is key, especially in the authorities´ market, and secure terminals and systems have already been delivered to the authorities of several countries. The number of users of the delivered systems is relatively moderate in the first phase, however, there is an excellent opportunity for growth as the number of users increases.
The secure Bittium Tough Mobile(TM) smartphone product family was extended with the new Bittium Tough Mobile(TM) 2 Tactical solution released in June. The solution is targeted at the defense market. The comprehensive solution enabling soldier’s mobile communication is based on the secure and durable Bittium Tough Mobile(TM) 2 smartphone, which can be connected either to the Bittium Tough SDR Handheld(TM) radio or to third-party tactical radios. The solution is compatible with different battle management systems, which enables real-time and efficient sharing of situational awareness in tactical networks. The Tough Mobile 2 smartphone offers the soldier a larger number of applications for use in tactical networks, and the phone’s large screen enables a better user interface compared to traditional military radios.
Medical Technologies Business Area
The medical technology market has recovered from the uncertainty caused by the coronavirus pandemic. The importance of remote care and remote monitoring is still developing with the insufficiency of medical care resources and cost pressures. Remote monitoring and remote diagnostics solutions bring help to these problems, which will in the future support the positive development of sales of Bittium’s medical remote diagnostics solutions.
Bittium has several medical device approvals in progress in different countries. The new European medical device product safety regulation, or MDR (Medical Device Regulation, EU 2017/745), entered into full force on
In the North American market, Bittium has started the medical FDA (
The demand for Bittium Faros(TM) ECG measuring devices increased, but both the receipt of orders and the actual device deliveries were significantly slowed down by a component shortage. Most of the product deliveries were made to the US customer Preventice Solutions (a fully owned subsidiary of
The Bittium Faros product family was expanded with the new Bittium Faros(TM) 180L ECG measuring device, which measures ECG continuously for at least 14 days with one battery charge. The device streamlines long-term ECG monitoring of stroke patients and improves diagnostic yield and patient satisfaction. The solution enables earlier discharge of patients and even better conditions to quickly detect and react to possible arrhythmias.
In the neurophysiology market, the pilots of the Bittium BrainStatus(TM) EEG measurement devices progressed well. New pilots have been started, including e.g., European university hospitals that test the use of BrainStatus in intensive care.
The Medical Technologies business unit continued to strengthen its own sales organization and to expand its international distribution network to promote international sales. The strengthening and development of product management, product development, and manufacturing organizations continued. In addition, the quality system and operating processes reached the level of compliance with MDR requirements in
Connectivity Solutions Business Area
In the second quarter, the net sales of R&D services remained at the same level as in the previous year. In the Connectivity Solutions business, the market has recovered from the coronavirus pandemic, and customer meetings have returned to normal speed, which has a positive effect on the business and the start of projects. The demand is focused on telecommunications and open radio frequency network architecture (Open Radio Access Network, O-RAN) solutions, wireless communication satellite technology, and connectivity solutions for embedded wireless devices in various industrial areas. New customers were won, and customer projects were started for the development of embedded systems.
In May, Bittium introduced a new Cellular IoT solution to the market, which offers IoT devices direct connectivity to cloud services over mobile networks. The solution can be used to update the local connectivity of existing IoT devices to 4G/5G connectivity or to integrate 4G/5G connectivity into new IoT devices being developed. The solution is based on software modules, the reuse of which improves the competitiveness of Bittium’s R&D services, enabling the implementation of connectivity projects for the customer faster and more cost-effectively.
The availability of labor in the market is still a challenge. In particular, there are too few software experts compared to the demand, and the competition for employees has increased the mobility of the workforce. Bittium develops its expertise, especially in the areas of wireless communication and embedded wireless connectivity solutions.
Financial Performance in January-
The net sales in January-
The share of product-based net sales was
The share of services-based net sales was
EBITDA was
The R&D investments were
The operating result in January-
Cash flow from operating activities was
The equity ratio was 70.9 percent (71.3 percent).
Net gearing was 0.3 percent (3.2 percent).
The order backlog at the end of the year was
Half Year Figures
| GROUP’S NET SALES AND OPERATING RESULT, MEUR | 1H/22 | 2H/21 | 1H/21 | 2H/20 |
| Net sales | 41.0 | 47.2 | 39.7 | 35.8 |
| Operating profit (loss) | -0.2 | 3.9 | -0.7 | -0.8 |
| Result before taxes | -0.7 | 3.6 | -1.0 | -0.9 |
| Result for the period | -0.6 | 4.4 | -1.0 | -0.4 |
| DISTRIBUTION OF NET SALES BY PRODUCT AND SERVICES, MEUR, aND % | 1H/22 | 2H/21 | 1H/21 | 2H/20 |
| Product-based net sales | 27.2 | 35.2 | 27.9 | 23.0 |
| 66.3 % | 74.5 % | 70.3 % | 64.3 % | |
| Services-based net sales | 13.8 | 12.0 | 11.8 | 12.8 |
| 33.7 % | 25.5 % | 29.7 % | 35.7 % | |
| DISTRIBUTION OF PRODUCT-BASED |
1H/22 | 2H/21 | 1H/21 | 2H/20 |
| Defense & Security products | 15.9 | 20.8 | 14.5 | 15.1 |
| 58.5 % | 59.3 % | 51.8 % | 65.5 % | |
| Medical Technologies products | 11.3 | 14.3 | 13.5 | 8.0 |
| 41.5 % | 40.7 % | 48.2 % | 34.5 % | |
| DISTRIBUTION OF SERVICES-BASED |
1H/22 | 2H/21 | 1H/21 | 2H/20 |
| Connectivity Solutions R&D services | 8.0 | 7.7 | 7.8 | 8.0 |
| 57.8 % | 63.8 % | 66.6 % | 62.4 % | |
| Other service-based net sales | 5.8 | 4.4 | 3.9 | 4.8 |
| 42.2 % | 36.2 % | 33.4 % | 37.6 % | |
| DISTRIBUTION OF NET SALES BY MARKET AREAS, | 1H/22 | 2H/21 | 1H/21 | 2H/20 |
| MEUR, AND % | ||||
| 0.5 | 0.3 | 0.3 | 0.2 | |
| 1.3 % | 0.6 % | 0.6 % | 0.5 % | |
| 10.4 | 14.9 | 14.4 | 6.4 | |
| 25.4 % | 31.5 % | 36.4 % | 17.8 % | |
| 30.1 | 32.0 | 25.0 | 29.3 | |
| 73.3 % | 67.9 % | 62.9 % | 81.7 % | |
Quarterly Figures
| GROUP’S NET SALES AND OPERATING RESULT, MEUR | 2Q/22 | 1Q/22 | 4Q/21 | 3Q/21 | 2Q/21 |
| Net sales | 22.7 | 18.4 | 30.1 | 17.1 | 22.6 |
| Operating profit (loss) | 0.8 | -1.0 | 3.7 | 0.2 | 0.7 |
| Result before taxes | 0.6 | -1.2 | 3.5 | 0.1 | 0.5 |
| Result for the period | 0.6 | -1.2 | 4.3 | 0.1 | 0.5 |
| DISTRIBUTION OF NET SALES BY PRODUCT AND SERVICES, MEUR, aND % | 2Q/22 | 1Q/22 | 4Q/21 | 3Q/21 | 2Q/21 |
| Product-based net sales | 15.8 | 11.4 | 23.0 | 12.2 | 16.7 |
| 69.7 % | 62.0 % | 76.5 % | 71.0 % | 73.8 % | |
| Services-based net sales | 6.9 | 7.0 | 7.1 | 5.0 | 5.9 |
| 30.3 % | 38.0 % | 23.5 % | 29.0 % | 26.2 % | |
| DISTRIBUTION OF PRODUCT-BASED |
2Q/22 | 1Q/22 | 4Q/21 | 3Q/21 | 2Q/21 |
| Defense & Security products | 8.2 | 7.8 | 15.5 | 5.3 | 11.2 |
| 51.6 % | 68.2 % | 67.6 % | 43.4 % | 66.8 % | |
| Medical Technologies products | 7.7 | 3.6 | 7.4 | 6.9 | 5.6 |
| 48.4 % | 31.8 % | 32.4 % | 56.6 % | 33.2 % | |
| DISTRIBUTION OF SERVICES-BASED |
2Q/22 | 1Q/22 | 4Q/21 | 3Q/21 | 2Q/21 |
| Connectivity Solutions R&D services | 3.7 | 4.3 | 4.6 | 3.1 | 3.8 |
| 54.6 % | 60.9 % | 64.8 % | 62.5 % | 63.7 % | |
| Other service-based net sales | 3.1 | 2.7 | 2.5 | 1.9 | 2.2 |
| 45.4 % | 39.1 % | 35.2 % | 37.5 % | 36.3 % | |
| DISTRIBUTION OF NET SALES BY MARKET AREAS, MEUR, aND % | 2Q/22 | 1Q/22 | 4Q/21 | 3Q/21 | 2Q/21 |
| 0.2 | 0.3 | 0.2 | 0.1 | 0.1 | |
| 0.9 % | 1.7 % | 0.6 % | 0.5 % | 0.6 % | |
| 6.6 | 3.8 | 8.8 | 6.1 | 7.2 | |
| 29.1 % | 20.8 % | 29.2 % | 35.7 % | 31.9 % | |
| 15.9 | 14.2 | 21.1 | 10.9 | 15.3 | |
| 70.0 % | 77.4 % | 70.2 % | 63.8 % | 67.5 % | |
Statement of Financial Position and Financing
The figures presented in the statement of financial position of
| Non-current assets | 84.8 | 85.9 |
| Current assets | 80.5 | 80.3 |
| Total assets | 165.3 | 166.1 |
| Share capital | 12.9 | 12.9 |
| Other capital | 102.1 | 103.9 |
| Total equity | 115.1 | 116.8 |
| Non-current liabilities | 21.6 | 21.5 |
| Current liabilities | 28.7 | 27.8 |
| Total equity and liabilities | 165.3 | 166.1 |
| Cash flow of the review period: | 1-6/2022 | 1-12/2021 |
| + profit of the period +/- Adjustment of accrual basis items | 6.4 | 15.2 |
| +/- Change in net working capital | 0.0 | -6.2 |
| – interest, taxes, and dividends | -0.5 | -0.7 |
| = net cash from operating activities | 6.0 | 8.3 |
| – net cash from investing activities | -3.7 | -8.4 |
| – net cash from financing activities | -2.3 | -2.5 |
| = net change in cash and cash equivalents | 0.0 | -2.6 |
The number of gross investments in the period under review was
The Group´s liquidity remained good despite the uncertainty caused by the global disruption in the availability of electronic components. Securing cash flow has not required any special adjustment measures and no significant changes have been identified in the credit risks of trade receivables.
Cash and other liquid assets at the end of the reporting period were
Bittium has a
Bittium follows a hedging strategy that has an 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, tactical communication systems, and products for the defense industry, different types of special terminal products for authorities, and their related security software. In 2021, the focus of investments has gradually shifted from tactical communications to the development of new medical technology products.
The capitalized R&D investments are related to the investments in developing the software-defined radio-based tactical radios, Bittium Tough SRD(TM) product family, further development of tactical communication networks, and development of medical technology products.
R&D INVESTMENTS, (MEUR)
| 1-6 2022 | 1-6 2021 | |
| 6 months | 6 months | |
| Total R&D investments | 11.1 | 11.0 |
| Capitalized R&D investments | -3.0 | -4.4 |
| Depreciation and impairment of R&D investments | 2.8 | 2.5 |
| The cost impact on the income statement | 11.0 | 9.1 |
| R&D investments, % of net sales | 27.2 % | 27.8 % |
| CAPITALIZED R&D INVESTMENTS IN BALANCE SHEET, MEUR | 1-6 2022 | 1-6 2021 |
| 6 months | 6 months | |
| Balance sheet value at the beginning of the period | 48.1 | 46.6 |
| Additions during the period | 3.0 | 4.4 |
| Depreciation and impairment of R&D investments | -2.8 | -2.5 |
| Balance sheet value at the end of the period | 48.2 | 48.5 |
Personnel
The Bittium group employed an average of 648 people in January-
Changes in the Company’s Management
Mr. Antti Näykki (45 years),
Mr.
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
| MARKET VALUES OF SHARES (EUR) | 1-6/2022 6 months |
1-6/2021 6 months |
|
| Highest | 6.08 | 7.89 | |
| Lowest | 4.46 | 5.79 | |
| Average | 5.22 | 6.59 | |
| At the end of period | 5.12 | 6.36 | |
| Market value of the stock, (MEUR) | 182.8 | 227.1 | |
| Trading value of shares, (MEUR) | 28.0 | 48.3 | |
| Number of shares traded, (1.000 pcs) | 5 359 | 7 323 | |
| Related to average number of shares, % | 15.0 | 20.5 | |
Incentive Systems
The company has three valid incentive systems on
Management Share-Based Incentive Plan
The management of the Bittium group’s share-based long-term incentive scheme comprises a Performance Share Plan (“PSP”). The objectives of the Performance Share Plan are to align the interests of Bittium’s management with those of the Company’s shareholders and, thus, to promote shareholder value creation in the long term, commit the management to achieving Bittium’s strategic targets, and the retention of Bittium’s management. The Performance Share Plan consists of three annually commencing three-year performance share plans, PSP 2020-2022, PSP 2021-2023, and PSP 2022-2024, 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 each plan is, however, subject to a separate Board decision. Further information can be found on the company’s internet pages at the address www.bittium.com.
On
On
In addition, the company has a variable pay, 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.
These incentive programs are described in more detail in the company’s 2021 financial statements.
Shareholders
| Larges Shareholders as of |
Number of shares | % of shares | |
| 1. Veikkolainen Erkki | 1 767 665 | 4.95 % | |
| 2. |
1 501 300 | 4.21 % | |
| 3. Hulkko Juha | 1 419 370 | 3.98 % | |
| 4. Mutual Pension Insurance Company Varma | 1 365 934 | 3.83 % | |
| 5. Mutual Pension Insurance Company Ilmarinen | 1 296 529 | 3.63 % | |
| 6. OP-Suomi Mikroyhtiöt – special investment company | 746 514 | 2.09 % | |
| 7. Investment Fund Taaleritehdas Mikro Markka | 700 000 | 1.96 % | |
| 8. |
658 000 | 1.84 % | |
| 9. |
552 336 | 1.55 % | |
| 10. |
506 684 | 1.42 % |
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 2022 of
Use of the Profits Shown on the Balance Sheet and Authorizing the Board of Directors to Decide on 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.
At its assembly meeting held on
The Annual General Meeting resolved that the following monthly remuneration shall be paid to the members of the Board of Directors: to the chairman of the Board of Directors
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 corresponds to approximately 9.80 percent of all of the shares in the company as of the date of the General Meeting. Only the unrestricted equity of the company can be used to repurchase its shares based on the authorization. Own shares can 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 their shares will be repurchased. Own shares can be repurchased using, inter alia, derivatives. Own shares can be repurchased otherwise than in proportion to the shareholdings of the shareholders (directed repurchase).
The authorization cancels the authorization given by the General Meeting on
The authorization is effective 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 Companies Act as follows.
The number of shares to be issued shall not exceed 3,500,000 shares, which corresponds to approximately 9.80 percent of all of the shares in the company as of the date of the General Meeting. The Board of Directors decides on all the conditions of the issuance of shares and special rights entitling to shares. The authorization concerns both the issuance of new shares as well as the transfer of treasury shares. The issuance of shares and special rights entitling to shares may be carried out in deviation from the shareholders’ pre-emptive rights (directed issue).
The authorization cancels the authorization given by the General Meeting on
The authorization is effective until
Significant Events after the Reporting Period
There were no significant events after the reporting period.
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.
Especially the global disruption in the availability of electronic components and their price development has caused fast changes in the company’s operating environment. The company monitors the development of the situation and actively strives to ensure the availability of components required for product deliveries. Poor availability of components can have a detrimental effect on the progress of the ability to deliver products.
The spread of the coronavirus around the world is still ongoing, and the resulting sick leave may affect the development of Bittium’s business. It is difficult to estimate the duration of the pandemic and its effects on business and financial results.
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 accumulates 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.
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. 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.
Outlook for 2022
The world’s geopolitical situation, problems in logistics chains, inflation, and deteriorating economic development create uncertainty in future outlook. About 70 percent of Bittium’s net sales accumulates from products and related systems. The global disruption in the availability of electronics components still causes significant uncertainty and poor visibility in the development of Bittium’s product-based net sales and operating result by the end of 2022.
Bittium expects the net sales of 2022 to be at the same level as in the previous year (
More information about Bittium’s market outlook, risks, and uncertainties are presented in this report in the sections “Market Outlook” and “Risks and Uncertainties” as well as on the company’s internet pages at www.bittium.com.
Market Outlook
Bittium’s customers operate in various industries, each of them having its 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 solutions to its customers. Over thirty years of experience and extensive competence in measuring biosignals also act as a basis for medical technology solutions.
In 2020 and 2021, the global coronavirus pandemic has significantly affected the global economy and market situation, however, the market has slowly recovered from the effects of the pandemic.
The global shortage of components will affect product manufacturing and thus the ability to deliver products to customers on schedule. In addition, the world’s geopolitical situation, problems with 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 other Bittium’s IP-based (Internet Protocol) tactical communication solutions. Bittium continues its efforts to bring its defense market targeted products and services also to the international defense markets and aims to get new international customers for its tactical communication system in 2022. Due to the long sales cycles driven by purchasing programs of national governments, it will take time to receive purchase orders. - The use of smartphones, and applications continues to increase in public safety market, creating demand for Bittium Tough Mobile(TM) secure smartphone and other customized special terminals based on Bittium’s own product platform. The awareness of mobile security risks is growing, and the interest in secure mobile devices is increasing. The sales of secure terminal products is expected to develop moderately according to the nature of public safety markets.
- The coronavirus pandemic has delayed the start of new projects and receiving orders. Especially in the defense and security markets, testing and piloting of products and systems are typical steps before orders from larger entities. These steps could not be carried out under exceptional circumstances. However, the market has clearly started to recover from the effects of the pandemic and projects are starting again.
- The global shortage of components affects the availability of various components used in products, which affects the company’s ability to deliver products to its customers on the agreed schedule.
Telecommunication and Digitalization
- In mobile telecommunications, the implementation of 5G is accelerating in pace. Investments in developing new features continue and the importance of software development in the 5G network development expands. This creates demand for Bittium’s R&D services. 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. The different kinds of needs for solutions in the open radio frequency network architecture, Open Radio Access Network (ORAN), and satellite communication increase the demand for Bittium’s R&D expertise as new players enter the traditional supplier network. Also, the development of new devices utilizing 5G technology increases the demand for Bittium’s services.
- 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 technology is expanding and the number of digitalized devices increases continuously. The devices will also feature new and more advanced features that will create demand for R&D 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.
- Technological development and new innovations enable the development of new devices for monitoring health and well-being, which increases the demand for Bittium’s product development service expertise. Bittium’s experience with various wearable and medical devices, combined with wireless connectivity expertise, enables competitiveness also in providing design services for health and well-being devices.
- In the wireless communication and digitization market, the coronavirus pandemic is causing only mild caution and a little slowness.
- Labor competition is expected to continue in the market during 2022.
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. These 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, remote monitoring and remote diagnostics, Bittium provides its Bittium Faros(TM) product family for remote heart monitoring, Bittium BrainStatus(TM) for measuring the electrical activity of the brain, home sleep apnea testing solution Bittium Respiro(TM), and different kinds of diagnostics software.
- During the coronavirus pandemic, non-urgent patients seeking treatment and examinations decreased. Several hospitals, treatment facilities, and health care service providers switched to using remote diagnostics solutions more widely. In the longer term, the pandemic will speed up the introduction of digital remote services in hospitals and care facilities, creating a positive development in the demand for remote monitoring products and services.
- The global shortage of components affects the availability of various components used in products and can affect the company’s ability to deliver products to its customers on time.
Annual Report, Sustainability Report, Corporate Governance and Remuneration Report from the Year 2021
On
The publications can be read on the company’s website at https://www.bittium.com in both Finnish and English. The Annual Report, the Sustainability Report, and the Corporate Governance statement can also be found at https://annualreport.bittium.com.
Invitation to a Press Conference
Bittium will hold a webcast regarding the Half Year Financial Report 2022 for media, analysts, and institutional investors on
Link to the Finnish webcast: https://bittium.videosync.fi/2022-puolivuosikatsaus
Link to the English webcast: https://bittium.videosync.fi/2022-h1-results
Recordings of both webcasts 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:
Tel. +358 40 344 5466
Tel. +358 40 344 2229
Distribution:
Nasdaq
Major media
Bittium Corporation Condensed Financial Statements and Notes January – June 2022
(unaudited)
The Half-year Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting.
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (MEUR) Continuing operations |
1-6/2022 6 months |
1-6/2021 6 months |
1-12/2021 12 months |
| 41.0 | 39.7 | 86.9 | |
| Other operating income | 1.4 | 1.3 | 2.6 |
| Work performed by the undertaking for its own purpose and capitalized | 0.4 | 0.3 | 0.5 |
| Raw materials | -9.0 | -10.1 | -23.3 |
| Personnel expenses | -21.6 | -20.5 | -39.0 |
| Depreciation | -5.3 | -4.9 | -10.5 |
| Other operating expenses | -7.0 | -6.5 | -13.9 |
| Share of profits in associated companies | -0.2 | -0.0 | -0.1 |
| OPERATING PROFIT (LOSS) | -0.2 | -0.7 | 3.2 |
| Financial income and expenses | -0.4 | -0.3 | -0.7 |
| PROFIT BEFORE TAX | -0.7 | -1.0 | 2.5 |
| Income tax | 0.0 | 0.0 | 0.8 |
| PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS | -0.6 | -1.0 | 3.3 |
| Discontinued operations | |||
| Profit for the year from discontinued operations | |||
| PROFIT FOR THE PERIOD | -0.6 | -1.0 | 3.3 |
| Other comprehensive income: | |||
| Items that may be reclassified subsequently to the statement of income | |||
| Exchange differences in translating foreign operations | 0.4 | 0.1 | 0.2 |
| Other comprehensive income for the period total | 0.4 | 0.1 | 0.2 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -0.3 | -1.0 | 3.6 |
| Profit for the year attributable to | |||
| Equity holders of the parent | -0.6 | -1.0 | 3.3 |
| Total comprehensive income for the period attributable to | |||
| Equity holders of the parent | -0.3 | -1.0 | 3.6 |
| Earnings per share from continuing operations, EUR | |||
| Basic earnings per share | -0.018 | -0.029 | 0.093 |
| Diluted earnings per share | -0.018 | -0.029 | 0.093 |
| 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 | -0.018 | -0.029 | 0.093 |
| Diluted earnings per share | -0.018 | -0.029 | 0.093 |
| Average number of shares, 1000 pcs | 35 702 | 35 698 | 35 700 |
| Average number of shares, diluted, 1000 pcs | 35 702 | 35 698 | 35 700 |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION (MEUR) | |||
| ASSETS | |||
| Non-current assets | |||
| Property, plant, and equipment | 20.2 | 21.9 | 20.9 |
| |
5.8 | 5.8 | 5.8 |
| Intangible assets | 49.9 | 50.6 | 49.9 |
| Other financial assets | 1.1 | 1.5 | 1.4 |
| Other non-current receivables | 1.0 | 1.1 | 1.1 |
| Deferred tax assets | 6.8 | 6.0 | 6.7 |
| Non-current assets total | 84.8 | 87.0 | 85.9 |
| Current assets | |||
| Inventories | 21.6 | 20.1 | 18.8 |
| Trade and other receivables | 36.9 | 35.4 | 39.4 |
| Financial assets at fair value through profit or loss | 5.7 | 5.7 | 5.7 |
| Cash and short-term deposits | 16.4 | 13.1 | 16.3 |
| Current assets total | 80.5 | 74.3 | 80.3 |
| TOTAL ASSETS | 165.3 | 161.3 | 166.1 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 12.9 | 12.9 | 12.9 |
| Invested non-restricted equity fund | 26.0 | 26.0 | 26.0 |
| Translation difference | 1.5 | 1.0 | 1.1 |
| Retained earnings | 74.7 | 72.4 | 76.8 |
| Total equity | 115.1 | 112.3 | 116.8 |
| Non-current liabilities | |||
| Deferred tax liabilities | 0.2 | 0.2 | 0.2 |
| Provisions | |||
| Interest-bearing liabilities | 21.2 | 21.3 | 21.1 |
| Other non-current liabilities | 0.2 | 0.2 | 0.2 |
| Advances received | |||
| Non-current liabilities total | 21.6 | 21.8 | 21.5 |
| Current liabilities | |||
| Trade and other payables | 23.6 | 23.1 | 23.1 |
| Provisions | 3.9 | 3.1 | 3.5 |
| Interest-bearing loans and borrowings | 1.1 | 1.1 | 1.2 |
| Current liabilities total | 28.7 | 27.3 | 27.8 |
| Total liabilities | 50.3 | 49.1 | 49.3 |
| TOTAL EQUITY AND LIABILITIES | 165.3 | 161.3 | 166.1 |
| CONSOLIDATED STATEMENT OF CASH FLOWS (MEUR) | 1-6/2022 6 months |
1-6/2021 6 months |
1-12/2021 12 months |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Profit for the year from continuing operations | -0.6 | -1.0 | 3.3 |
| Profit for the year from discontinued operations | |||
| Adjustment of accrual basis items | 7.1 | 6.2 | 11.9 |
| Change in net working capital | 0.0 | -3.7 | -6.2 |
| Interest paid on operating activities | -0.4 | -0.4 | -0.8 |
| Interest received from operating activities | 0.0 | 0.1 | 0.1 |
| Income taxes paid | -0.0 | -0.0 | -0.1 |
| NET CASH FROM OPERATING ACTIVITIES | 6.0 | 1.2 | 8.3 |
| CASH FLOW FROM INVESTING ACTIVITIES | |||
| Purchase of property, plant, and equipment | -0.4 | -0.5 | -1.0 |
| Purchase of intangible assets | -3.3 | -4.6 | -7.5 |
| Purchase of investments/associated companies | -0.0 | ||
| Sale of investments/associated companies | |||
| Sale of property, plant, and equipment | |||
| Sale of intangible assets | |||
| NET CASH FROM INVESTING ACTIVITIES | -3.7 | -5.2 | -8.4 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Borrowings | |||
| Repayment of borrowing | |||
| Payment of finance liabilities | -0.7 | -0.7 | -1.4 |
| Dividend paid | -1.4 | -1.1 | -1.1 |
| Purchases of own shares | -0.1 | ||
| NET CASH FROM FINANCING ACTIVITIES | -2.3 | -1.8 | -2.5 |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 0.0 | -5.8 | -2.6 |
| Cash and cash equivalents at the beginning of period | 22.0 | 24.7 | 24.7 |
| Cash and cash equivalents at the end of period | 22.0 | 18.9 | 22.0 |
| 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 | 0.9 | 74.5 | 114.2 | |
| Comprehensive income for the period | ||||||
| Profit/loss for the period | -1.0 | -1.0 | ||||
| Exchange differences in translating foreign operations | 0.1 | 0.1 | ||||
| Total comprehensive income for the period | 0.1 | -1.0 | -1.0 | |||
| Transactions between the shareholders | ||||||
| Distribution of dividends | -1.1 | -1.1 | ||||
| Share-related compensation | 0.1 | 0.1 | ||||
| Total transactions between the shareholders | -1.0 | -1.0 | ||||
| Other changes | 0.0 | 0.0 | ||||
| Shareholders´ equity on |
12.9 | 26.0 | 1.0 | 72.4 | 112.3 |
| 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/loss for the period | -0.6 | -0.6 | ||||
| Exchange differences in translating foreign operations | 0.4 | 0.4 | ||||
| Total comprehensive income for the period | 0.4 | -0.6 | -0.3 | |||
| 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 | 1.5 | 74.7 | 115.1 |
NOTES TO THE HALF-YEAR FINANCIAL REPORTING
ACCOUNTING PRINCIPLES FOR THE HALF-YEAR FINANCIAL REPORTING:
The Half Year Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting.
ALTERNATIVE PERFORMANCE MEASURES
In this report, Bittium uses alternative performance measures in accordance with the guidelines issued by the
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) | 1-6/2022 6 months |
1-6/2021 6 months |
1-12/2021 12 months |
| Net sales | |||
| Europe | 30.1 | 25.0 | 57.0 |
| Americas | 10.4 | 14.4 | 29.3 |
| Asia | 0.5 | 0.3 | 0.5 |
| Net sales total | 41.0 | 39.7 | 86.9 |
| RELATED PARTY TRANSACTIONS | 1-6/2022 6 months |
1-6/2021 6 months |
1-12/2021 12 months |
| Employee benefits for key management and stock options expenses total. continuing operations | 0.9 | 1.1 | 1.4 |
The Management of
| SHARE-BASED REMUNERATION OF THE MANAGEMENT | |
| Form of the reward | Shares |
| Grant date | |
| Total amount of the shares at the most | 122 100 |
| Share price at the grant date, EUR | 5.20 |
| Total expenses of the reward at the most, EUR million | 0.7 |
| Execution | In shares |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME BY QUARTER (MEUR) Continuing operations |
4-6/2022 3 months |
1-3/2022 3 months |
10-12/2021 3 months |
7-9/2021 3 months |
4-6/2021 3 months |
||
| NET SALES | 22.7 | 18.4 | 30.1 | 17.1 | 22.6 | ||
| Other operating income | 0.7 | 0.7 | 0.8 | 0.5 | 0.7 | ||
| Work performed by the undertaking for its own purpose and capitalized | 0.3 | 0.1 | 0.1 | 0.1 | 0.1 | ||
| Raw materials | -5.9 | -3.1 | -9.1 | -4.1 | -6.4 | ||
| Personnel expenses | -10.4 | -11.2 | -10.5 | -8.1 | -10.3 | ||
| Depreciation | -2.6 | -2.6 | -2.9 | -2.6 | -2.5 | ||
| Other operating expenses | -3.8 | -3.2 | -4.7 | -2.7 | -3.5 | ||
| Share of profits in associated companies | -0.1 | -0.1 | -0.1 | -0.0 | 0.0 | ||
| OPERATING PROFIT (LOSS) | 0.8 | -1.0 | 3.7 | 0.2 | 0.7 | ||
| Financial income and expenses | -0.2 | -0.2 | -0.2 | -0.2 | -0.2 | ||
| PROFIT BEFORE TAX | 0.6 | -1.2 | 3.5 | 0.1 | 0.5 | ||
| Income tax | 0.0 | 0.0 | 0.8 | 0.0 | -0.0 | ||
| PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS | 0.6 | -1.2 | 4.3 | 0.1 | 0.5 | ||
| Discontinued operations | |||||||
| Profit for the period from discontinued operations | |||||||
| PROFIT FOR THE PERIOD | 0.6 | -1.2 | 4.3 | 0.1 | 0.5 | ||
| Other comprehensive income | 0.3 | 0.1 | 0.0 | 0.1 | -0.0 | ||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 0.9 | -1.1 | 4.3 | 0.2 | 0.5 | ||
| Profit for the period attributable to: | |||||||
| Equity holders of the parent | 0.6 | -1.2 | 4.3 | 0.1 | 0.5 | ||
| Total comprehensive income for the period attributable to: | |||||||
| Equity holders of the parent | 0.9 | -1.1 | 4.3 | 0.2 | 0.5 |
| CONSOLIDATED STATEMENT OF CASH FLOWS BY QUARTER | 4-6/2022 3 months |
1-3/2022 3 months |
10-12/2021 3 months |
7-9/2021 3 months |
4-6/2021 3 months |
|
| Net cash from operating activities | 2.9 | 3.0 | 4.2 | 2.9 | 2.6 | |
| Net cash from investing activities | -2.0 | -1.7 | -1.6 | -1.6 | -2.3 | |
| Net cash from financing activities | -1.9 | -0.4 | -0.3 | -0.3 | -1.5 | |
| The net change in cash and cash equivalents | -1.0 | 1.0 | 2.2 | 1.0 | -1.1 |
| FINANCIAL PERFORMANCE-RELATED RATIOS | 1-6/2022 6 months |
1-6/2021 6 months |
1-12/2021 12 months |
| STATEMENT OF COMPREHENSIVE INCOME (MEUR) | |||
| Net sales | 41.0 | 39.7 | 86.9 |
| Operating profit (loss) | -0.2 | -0.7 | 3.2 |
| Operating profit (loss), % of net sales | -0.6 | -1.8 | 3.7 |
| Profit before taxes | -0.7 | -1.0 | 2.5 |
| Profit before taxes, % of net sales | -1.6 | -2.6 | 2.9 |
| Profit for the period from continuing operations | -0.6 | -1.0 | 3.3 |
| PROFITABILITY AND OTHER KEY FIGURES | |||
| Interest-bearing net liabilities, (MEUR) | 0.3 | 3.6 | 0.2 |
| Net gearing, % | 0.3 | 3.2 | 0.2 |
| Equity ratio, % | 70.9 | 71.3 | 72.4 |
| Gross investments, (MEUR) | 4.6 | 5.8 | 9.6 |
| Average personnel during the period, continuing operations | 648 | 670 | 664 |
| Personnel at the period end, continuing operations | 649 | 664 | 653 |
| AMOUNT OF SHARE ISSUE ADJUSTMENT (1.000 pcs) | |||
| At the end of period | 35 702 | 35 702 | 35 702 |
| Average for the period | 35 702 | 35 698 | 35 700 |
| Average for the period diluted with stock options | 35 702 | 35 698 | 35 700 |
| STOCK-RELATED FINANCIAL RATIOS (EUR) | 1-6/2022 6 months |
1-6/2021 6 months |
1-12/2021 12 months |
| Earnings per share from continuing operations. EUR | |||
| Basic earnings per share | -0.018 | -0.029 | 0.093 |
| Diluted earnings per share | -0.018 | -0.029 | 0.093 |
| 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 | -0.018 | -0.029 | 0.093 |
| Diluted earnings per share | -0.018 | -0.029 | 0.093 |
| Equity *) per share | 3.22 | 3.14 | 3.27 |
| *) Equity attributable to equity holders of the parent |
| MARKET VALUES OF SHARES (EUR) | 1-6/2022 6 months |
1-6/2021 6 months |
1-12/2021 12 months |
| Highest | 6.08 | 7.89 | 7.89 |
| Lowest | 4.46 | 5.79 | 4.93 |
| Average | 5.22 | 6.59 | 6.18 |
| At the end of period | 5.12 | 6.36 | 5.30 |
| Market value of the stock, (MEUR) | 182.8 | 227.1 | 189.2 |
| Trading value of shares, (MEUR) | 28.0 | 48.3 | 83.2 |
| Number of shares traded, (1.000 pcs) | 5 359 | 7 323 | 13 464 |
| Related to average number of shares % | 15.0 | 20.5 | 37.7 |
| SECURITIES AND CONTINGENT LIABILITIES (MEUR) | |||
| AGAINST OWN LIABILITIES | |||
| Floating charges | |||
| Mortgages are pledged for liabilities totaled | |||
| Guarantees | 3.0 | 3.0 | 3.0 |
| Rental liabilities | |||
| Falling due in the next year | 0.1 | 0.1 | 0.0 |
| Falling due after one year | |||
| Other contractual liabilities | |||
| Falling due in the next year | 2.1 | 2.1 | 1.4 |
| Falling due after one year | 0.3 | 0.8 | 1.4 |
| Material purchase commitments | 17.3 | 15.6 | 18.2 |
| NOMINAL VALUE OF CURRENCY DERIVATIVES (MEUR) | |||
| Foreign exchange forward contracts | |||
| Market value | -0.1 | -0.1 | 0.0 |
| Nominal value | 2.5 | 1.4 | 5.0 |
https://mb.cision.com/Main/13623/3610478/1611820.pdf
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