Hi @Tallitonttu,
Thank you for your question. Bittium has a long history of cooperation with Nokia. Nokia has entered the defense market to offer 4G/5G solutions for communication systems. We do not see Nokia’s solution as a competitor; rather, such solutions could complement Bittium’s data transfer system for other uses as well.
Thank you, Karoliina, for the answers and a sunny rest of the spring. And we hope, on behalf of the owners and the entire company, that the tenders go smoothly to the finish line. Even to that famous bullseye.
Hi @Tallitonttu
Decisions made regarding personnel selections are by nature such that they cannot practically be opposed without making a counter-proposal. This is because, according to the Companies Act and the Articles of Association, the company must elect a Board of Directors and an auditor, and nowadays also a sustainability report verifier (brought about by the CSRD Sustainability Directive).
In an election, the candidates who receive the most votes are elected, and there are no opposing votes. Taking into account merely a vote against the selection is not possible in these matters as part of the general meeting’s decision-making, which is also evident from the guidelines on general meeting procedures issued by the Advisory Board for Listed Companies. Therefore, advance voting forms do not have an “Oppose” option for items 12, 13, 15, and 17. Every shareholder has the right to have a matter belonging to the general meeting under this Act considered by the general meeting in accordance with section OYL 5:5 of the Companies Act.
Hi @Tallitonttu,
Thank you again for your numerous questions, and as the very last one before the start of the Silent Period related to the Q1 release, I will answer your question regarding the Nordic implementation document.
Nordic defense cooperation has strengthened over the past years, and political uncertainty has increased coalitions between different countries. Cooperation between defense industry companies has also increased significantly. The now signed Nordic implementation document regarding command and control systems will certainly deepen cooperation. We have active cooperation with both Finnish and Nordic defense industry companies, and we eagerly await the development of opportunities created by the market and cooperation.
Thanks again, Karoliina, for these answers, and let’s get back to it.
Head of Operations at Bittium.
He comes from Haltian, with experience in product ramp-ups and procurement networks from Nokia, including Microsoft.
If Bittium gets sales, he would likely be a good addition to the professional management of ramp-ups and deliveries.
Bittium Corporation’s stock exchange release April 15, 2025, at 8:30 a.m.
Teemu Hannula (M.Sc. (Tech.)) has been appointed as the Director responsible for operational activities and a member of the Management Group of Bittium Corporation. Hannula will start in his position no later than June 1, 2025. He will report to Petri Toljamo, CEO of Bittium Corporation.
Teemu Hannula has over 25 years of experience in managing order-delivery chains and extensive international experience in the electronics product markets in Europe, Asia, and the United States. Hannula joins Bittium from Haltian, where he was most recently responsible for the company’s operational activities. Prior to this, he worked at Microsoft and Nokia, where he was responsible for the ramp-up of new product manufacturing and scaling production.
“We are aiming for significant international growth, and one of the cornerstones of our growth strategy is strengthening scalability. I am pleased to welcome Teemu to Bittium to be responsible for operational activities. Teemu has strong experience in production and operations management, as well as extensive international expertise in the ramp-up and scaling of electronics product production to meet growth needs. Ensuring cost-effective production and delivery capability is key for us in building growth,” says Petri Toljamo, CEO of Bittium Corporation.
Here are the Sotkamo crofter’s comments as Bittium publishes its Q1 report next week on Tuesday. 
We expect a clear step forward from the company during a seasonally weak period, both in terms of revenue and profit. We expect strong growth in the Defense & Security segment due to a significantly increased order book, but there is always significant uncertainty associated with the timing of product deliveries. In other business operations, development is, in our assessment, mixed. The outlook is also excellent in the defense sector, but unclear elsewhere. Adding to the uncertainty in the Medical segment’s outlook are US import tariffs, as the segment’s key customer is the US-based Boston Scientific and its largest market is the United States.
It should be easy to ride megatrends like defence and medical, or so one might think.
If the company’s guidance was quite moderate, then it seems they’ve been taking it easy again.
Growth remained at 6.5%, operating margin at 10%, and operating profit just over 2%.
Defence, at least, grew by 15.7% with an operating profit margin of 3.3%. For a change, the component shortage card has been pulled out.
On the Medical side, net sales decreased by 8.5% and operating profit was -3.0%, a loss on the table. Oh my, what a glaring underperformance.
This diamond should be polished.
It’s a bit annoying that Medical has been adrift for so long, even though the prerequisites would be there for so much, especially considering the relative insignificance of the business size.
Hopefully, despite the recent boost, Defence won’t become an underperformer like Medical; the mantra of long cycles is a bit dangerous. The entire company management, including the board, could at worst hide behind this mantra and not demand proper performance for even a decade.
Well, let’s see, investments to implement the growth strategy have reportedly begun… Nice
A “warning” is also given about inorganic growth.
Summary January-March 2025
Bittium’s net sales grew by 6.5 percent from the previous year to EUR 19.3 million (EUR 18.2 million).
• Product-based net sales were EUR 10.8 million (EUR 10.7 million). Product-based net sales accounted for 55.8 percent of total
net sales (59.1 percent).
• Service-based net sales were EUR 8.5 million (EUR 7.4 million). Service-based net sales accounted for 44.1 percent of total
net sales (40.9 percent).
• EBITDA was EUR 1.9 million (EUR 3.2 million), representing 10.0 percent of net sales (17.6 percent).
• Operating profit was EUR 0.4 million (EUR 1.0 million), representing 2.2 percent of net sales (5.7 percent).
• The period’s result was EUR 0.4 million and earnings per share EUR 0.011 (period’s result EUR 0.7 million and earnings per
share EUR 0.019).
• Cash flow from operations was EUR 9.2 million (EUR 5.2 million).
• Net cash flow was EUR 6.0 million (EUR 2.8 million).
• Order backlog was EUR 36.5 million (EUR 31.6 million).
• Number of personnel at the end of the period was 523 (513 persons).
• Shareholders were invited to the Annual General Meeting, which will be held on May 7, 2025, in Oulu. Bittium Corporation’s Board of Directors proposes to the Annual General Meeting
that a dividend of EUR 0.10 per share be distributed based on the balance sheet to be adopted for the financial year January 1–December 31, 2024.
• Petri Toljamo started as Bittium Corporation’s new CEO on April 1, 2025. Former CEO Johan Westermarck resigned
from his position on February 18, 2025.
• Niina Huikuri was appointed Director of the Medical business segment and a member of the Management Group starting May 1, 2025.
• After the review period, Teemu Hannula was appointed Director of Operations and a member of the Management Group
starting June 1, 2025.
• Investments to implement the growth strategy were initiated.
• The global geopolitical situation causes uncertainty in the operating environment.
Defense & Security business segment’s net sales grew by 15.7 percent in the first quarter from the previous year and amounted to EUR 10.7 million. Growth fell short of our expectations due to some product deliveries being postponed due to material availability issues. Operating profit was EUR 0.3 million, representing 3.3 percent of net sales. The order backlog improved from the previous year.
Medical business segment’s net sales decreased by 8.5 percent in the first quarter from the previous year and amounted to EUR 4.7 million. The decrease in net sales was affected by a lower volume of product deliveries, especially in Europe. Operating profit was EUR -0.1 million, representing -3.0 percent of net sales. Operating profit was weakened by investments in strengthening regulatory expertise for medical devices. The order backlog decreased from the corresponding period of the previous year.
Engineering Services business segment’s net sales in the first quarter rose by 4.2 percent from the previous year and amounted to EUR 3.9 million. Operating profit was EUR 0.2 million, representing 4.7 percent of net sales. The challenging market situation, especially in the manufacturing industry, affected net sales growth and profitability. Cost pressures in the operating environment also reflected in the order backlog, which weakened from the comparison period.
We are investing in accelerating international sales and focusing on comprehensive customer-centricity at every organizational level. We have initiated an organizational renewal to ensure we have the right capabilities to implement the strategy. We are in the early stages of our strategy period and continue to work determinedly to achieve our goals. We are also taking a more active approach to inorganic growth opportunities.
Press Release Worthy Croatian Trade Order 1.8 MEUR
Bittium continues to equip Croatian Navy and Army with next-generation tactical communication solutions
Bittium Corporation, Press Release, April 29, 2025, at 10:15 a.m. EEST
Bittium has received an order to supply additional Bittium Tactical Wireless IP Network™ (TAC WIN) software-defined radio system products and Bittium Tough SDR Vehicular™ radios with accessories to the Croatian Navy and Army. The order is part of a four-year framework agreement that Bittium’s Croatian partner, IntellByte INFO, a provider of information technology solutions, has signed with the Croatian Ministry of Defense for the supply and integration of tactical communication systems for use by various branches of the Croatian Armed Forces. The order received by Bittium is valued at approximately EUR 1.8 million.
Bittium’s solutions are modernizing the tactical communications of the Croatian Navy and Army as part of the Croatian Armed Forces’ command and control system reform. The goal of the reform is to enable real-time situational awareness to support the command of Croatian Armed Forces troops. The TAC WIN system will be used to build a modular and combat-resilient backbone network for the Croatian Navy, to which Navy vessels will connect using high-performance Tough SDR Vehicular radios. Bittium Tough SDR Vehicular radios are also planned to be used for seamless communication between land and naval forces.
The products to be delivered also include waveforms that enable communication in various use cases. The high-performance Bittium TAC WIN Waveform™ enables broadband data transfer and seamless interoperability between the TAC WIN backbone network and Tough SDR Vehicular radios. The NATO-standardized broadband ESSOR High Data Rate Waveform is compatible with Tough SDR Vehicular radios and enables communication in both national and allied forces’ operations. The narrowband Bittium Narrowband Waveform™ enables simultaneous voice and message transmission in command networks with Tough SDR Vehicular radios, even over long distances and a wide frequency range if necessary.
Juha has published a new company report on Bittium.
We lower Bittium’s target price to EUR 7.0 (previously EUR 7.8) and reiterate our reduce recommendation. Q1 results were weak in terms of profitability, order flows were sluggish, and the outlook, especially in the Medical segment, raises concerns. The strategy will be reviewed, but quick solutions to the challenges are unlikely. The outlook for the Defense & Security segment is excellent, but the outcomes of tenders are difficult to predict. Overall, there are enough uncertainties, against which the current valuation seems challenging in our opinion.
Quoted from the report:
Bittium will clarify the strategy for its Medical segment during the upcoming autumn, after which we will gain more visibility into the plans for the coming years. Clearly, the company is seeking new business and especially a new angle for the commercialization of its products. When we also consider the discontinuity in the Boston Scientific collaboration and the assumed continuation period, Medical has a very interesting 12 months ahead.
Hi @Karoliina_Malmi
I’d be interested to know why the component shortage caught us by surprise again; orders are expected but no preparations are made for component availability. It would be nice to know how many devices remained undelivered due to this, and whether the problem has been overcome or if the products are so old that those specific components can no longer be found.
Hi @Karoliina_Malmi,
Q1 is now out. From an investor’s perspective, the quarter was quite a big disappointment.
Especially regarding Medical, but also due to the significant decrease in new defence orders.
Especially when defence’s goal is to be a significant international player in the field.
A few years ago, the Chairman of the Board commendably opened up about the company’s situation at that time on this forum. Would it be possible to get a similar situation update on the current situation?
However, the world has changed greatly since the previous update. NATO, the war in Ukraine, the rearmament boom, etc.
And regarding the company’s matters, e.g., the weakening performance of Medical, defence tenders, BAE Systems cooperation, strategic partnership with the Finnish Defence Forces, possible separation of units, inorganic growth that has been discussed, cooperation with Nokia?, competitive situation regarding defence, Nordic cooperation, surprising change of CEO (at least from an investor’s perspective), the company’s rather unambitious growth strategy mirrored against prevailing megatrends, selection criteria for board members, etc.
I believe that quite a few investors would like to hear the board’s view on the company’s current situation and also its outlook for the future.
Thank you. And Happy May Day.
Demonstration Worthy of a Press Release with a Known Customer, the Finnish Defence Forces
Great job, good start!
Then, quickly, demonstrations to the Bundeswehr, the Fuerzas Armadas Españolas, the TSK, the Försvarsmakten, the Forsvaret…
As I understand it, the land forces reform is starting immediately. The Minister of Defence already said so.
Hi @_jk
And thanks for the question. It wasn’t an actual component shortage – we just didn’t receive enough circuit boards on time. Circuit boards have been on the critical path for some time now. Corrective measures were taken considerably before the problem materialized. Close supplier monitoring has been carried out, and top management escalation meetings have been held, but our supplier was unable to meet our needs. We have been assured that the problem is temporary and we will be able to compensate for the shortfall. Naturally, we will continue close monitoring, and top management escalations will continue if necessary.
We have not disclosed the extent of the shortfall, but revenue growth and profit would have been significantly better.
The products are not old. Naturally, components constantly reach EoL (End-of-Life) status, at which point a final order for the component must be placed and a new component designed to replace it. This is normal in product business. We always aim to group such component changes into a larger whole, making the continuous flow of changes more manageable. Our product development process includes a repeatable MidLifeUpgrade (MLU) as an essential part, through which we simultaneously add and improve product features. Our products have long lifecycles, so more than one MLU during a product’s lifecycle may be necessary. Another path in software-defined radios is the continuous improvement of performance and the controlled addition of features with new software versions.
Thank you for the prompt and clear response.
I can happily continue owning.
Happy May Day to everyone.
There was more information in the image here than what the actual announcement states. I wondered what that TAK logo was doing there. It seems to be an American app. Does anyone know more about it? Basic information can be found by searching. But why is it included in that picture?
Hei @Tallitonttu
Thank you for your questions. Below is the answer to your comment:
Medical has fallen short of its targets, and we have not succeeded in rectifying the situation last year. Corrective measures have been taken and are ongoing. We are not overly concerned about the decrease in Defence orders – one quarter does not change the overall picture yet (e.g., 4Q/24 order book jumped).
In Defence, the company aims to be, and already is, a reasonably significant player in the tactical communication disruption of defense forces. If the defense industry is viewed as a whole, there is no point in comparing us to defense giants. We focus on a targeted segment and intend to be winners there.
Let’s start with the company’s development trajectory – after the collapse of the product development services business (2017), the company has been able to grow its product revenue in line with its strategy while making strong investments in product development until 2021. Due to these investments, the result was effectively negative throughout this period. Cash flow-based earnings continuously improved due to increasing product sales. Accounting profit was generally slightly positive with the help of activations. At that time, the board was particularly concerned about the company’s future financial development, as a result of which the board decided to explore a potential new CEO as an alternative solution - the current CEO (Petri Toljamo) was also attempted to be recruited. After the then-CEO resigned, a new CEO was appointed in December 2022. Concurrently, the board announced long-term financial targets and a timeline (2024) for achieving these targets. The new CEO’s targets for 2023 (cost savings if necessary) and 2024 were clear minimum targets. The new CEO commendably carried out cost adjustments in the autumn of 2023, although the year’s revenue and profit were particularly disappointing. The profitability turnaround for 2024 was achieved barely, especially thanks to a volume order for SDR products from the Finnish Defence Forces. Development in the Medical and Engineering sectors was sluggish. Profit improvement achieved through restructuring is easier if product margins are good and more difficult if margins are poor. A change in CEO (if the CEO wished to continue) generally also indicates a lack of confidence from the board. With this change, the board aims for the operating management to have an even better broad understanding of the technologies we apply, so that the impacts of decisions on the future can be predicted more reliably. For the company to succeed in the future, the company’s operational clock speed must be increased, and things must be done with higher quality, faster, more focused, and more cost-effectively.
NATO membership has clearly improved Bittium’s opportunities in international tenders. The war in Ukraine and the Russian threat have generally raised the appreciation of the defense industry and created very strong demand in the sector, where the company has, for its part, seen a strong increase in said demand and an enlargement of tender sizes.
After three years, the war between Ukraine and Russia has become a war of attrition, where the demand for ammunition, missiles, armor, and transport equipment, among other things, has been prioritized in the procurement plans of various countries at this stage. Significant procurement needs are not resolved instantly, so it is certain that the amount of investment in defense will continue and grow. Bittium’s offering in tactical communication specifically supports the need for a reliable, secure, and easily adaptable and scalable command and control system. High data capacity enables comprehensive command and control and situational awareness, and our offering is excellently suited for operational command as well as particularly for air defense needs due to low latency. These are precisely what are needed. Despite the current static characteristics of the war of attrition emphasizing warfare, Bittium’s tactical communication system is the core of the command and control system in winning warfare. An easily adaptable, comprehensive, and scalable secure mobile command and control system, internationally compatible and suitable for the needs of various operations, will eventually replace passive fixed command and control systems – just as happened with the wired network. Bittium’s opportunities are very good due to its strong expertise and advanced technology.
In Medical, we are truly good at biosignal measurement. Faros has achieved an industry reference position in excellent signal quality measurement. Otherwise, we have not been able to integrate our biosignal expertise into creating competitive overall solutions. This integration includes software and approval procedures, where we have had significant shortcomings. At the same time, it must be stated that, in certain respects, FDA approvals have been very difficult for others as well. However, the situation is not lost, and we are doing everything we can to be able to share positive news in the future. Direction-changing measures have been initiated, and parts of them have already been announced. Focusing on what we do is the keyword.
Regarding Defence tenders, BAE cooperation, Finnish Defence Forces (PV) partnership, Nokia cooperation, and inorganic growth, we have disclosed what we can. When the topic arises, we will immediately provide more information.
Much has been said publicly about Nordic cooperation in the defense sector, and we cannot provide further information on that at this time. For the company, the Nordic dimension is an extremely important focus area.
We note your comment that the growth strategy is unambitious. We have stated the company-level numerical minimum targets (revenue (LV) growth and operating profit (OP) over 10%). We are thus seeking profitable annual absolute growth (compound interest). In the current situation, we consider our long-term financial targets realistic and provide an annual specified growth target and earnings range.
In 2024, Defence grew by 42.3%, Medical contracted by 12.6%, and Engineering by 15.6%. The entire company’s revenue grew by 13.2%, and the profit was 10.1%. The company-level targets were barely met. According to our guidance, we will grow at the company level by 11.5 – 23.3% this year, and operating profit will be over 10%. Based on the Q1/25 earnings release, it could be approximated that Defence must grow clearly over ten percent for the guidance to be maintained. The company believes it will achieve the set targets because the guidance was not changed.
Thank you for the thorough answer. Have a nice weekend!