Report by the Board of Directors

Net Sales in 2016 Grew by 13% Year-on-year and Operating Result Improved Slightly

Bittiumīs net sales during January-December 2016 increased by 13.0 percent year-on-year to EUR 64.2 million (EUR 56.8 million in 1–12 2015).

The share of the product-based net sales was EUR 11.9 million (EUR 13.1 million in 1–12 2015), which resulted mainly from the product deliveries of the tactical communication system, product deliveries of Bittium Tough Mobile LTE smartphones and related security software, the deliveries of other terminal products for authorities use, and deliveries of products for measuring and monitoring biosignals. The decrease in the product-based net sales year-on-year was mainly caused by the ending of product deliveries of a special terminal project for a US-based customer during the corresponding period.

The share of the services-based net sales was EUR 51.8 million (EUR 43.4 million in 1–12 2015). Despite the decrease in the demand for the services business in the network equipment market, the services-based net sales increased year-on-year due to the increased demand for the R&D services related to the special terminal products. 

Operating result was EUR 2.5 million (EUR 2.3 million in 1–12 2015).