Financial Performance in 2018
Bittium´s net sales in JanuaryDecember 2018 grew by 21.7 percent year-on-year to EUR 62.8 million (EUR 51.6 million, in 2017).
The share of the product-based net sales increased significantly to 49.0 percent and was EUR 30.8 million (EUR 16.3 million, in 2017), which resulted mainly from the product deliveries of the tactical communication system, deliveries of products for measuring and monitoring biosignals, and product deliveries of Bittium Tough Mobile smartphones and Mexsat phones and their related security software.
The share of the services-based net sales decreased to 51.0 percent and was EUR 32.1 million (EUR 34.9 million, in 2017). The decrease in the services business net sales was caused by the typical variation of timing of R&D project´s beginning and ending, as well as the company´s own significant large R&D projects that tie experts into internal product development.
Operating profit was EUR 2.8 million (operating loss of EUR -6.2 million, in 2017).
Cash flow from operating activities was EUR -0.5 million (EUR -0.0 million, in 2017). Net cash flow during the period was EUR -32.0 million. As the most significant item the net cash flow includes EUR 15.1 million investments made into own product development and the EUR 10.7 million dividend payment (EUR -32.0 million, in 2017, including EUR 5.8 million investments in own R&D and EUR 10.7 million dividend payment as well as investments into the new premises in Oulu, as the most significant item).
Equity ratio was 84.7 percent (85.6 percent, December 31, 2017). Net gearing was -26.7 percent (-52.9 percent, December 31, 2017).
Research and Development
Bittium continued R&D investments in its own products and product platforms and the amount of R&D investments increased significantly during 2018. R&D investments in 2018 were EUR 21.6 million (EUR 15.0 million in 2017) which was 34.4 percent of net sales (29.1 percent of net sales in 2017). EUR 15.1 million were capitalized (EUR 5.8 million in 2017). The amount of capitalized R&D investments in the balance sheet at the end of 2018 were EUR 26.6 million (EUR 11.9 million in 2017).