Business Development in JanuaryDecember 2018
January 18, 2018 Bittium announced to have received the first orders from Mexican government authorities for mobile devices developed for a satellite communication system. The mobile devices have been developed in a product development project that started in the year 2015. The product development phase has been successfully concluded and the devices are now in volume production. The total value of the first orders was approximately EUR 2.0 million and the devices were delivered to the customers by the end of the first quarter of 2018. The mobile devices are manufactured in Finland.
Bittium also announced to have opened a branch office in Mexico to enable high quality customer support for the local customers, and to contribute to sales and marketing in Mexico and other Latin American countries. Mr. Fernando Castillo was appointed as the General Manager of the branch office in Mexico. Mr. Castillo has a long experience in the Mexican authorities market.
February 13, 2018 Bittium Biosignals Ltd, a subsidiary of Bittium Corporation, and a major US remote monitoring provider, concluded a three-year supply agreement under which Bittium will supply the Bittium Faros 360 and customized Bittium Faros 360 cardiac ECG signal measuring and monitoring devices. In addition, Bittium will supply disposable electrodes for attaching Bittium Faros ECG devices. When materialized in full, the total value of the agreement is USD 21 million (approximately EUR 17,1 million based on an exchange rate of February 12, 2018) with revenues recognized gradually during the years 2018, 2019, 2020 and 2021 depending on the progress of the product deliveries, with estimated emphasis on 2019 and 2020. This agreement did not change the Companyīs long term financial outlook.
March 9, 2018 Bittium Cardiac Navigator meant for the analysis of clinical Holter ECG recordings received medical device approval in Europe. The approval allows cardiologists to use the Bittium Cardiac Navigator software solution for official analysis of Holter ECG recordings collected with Bittium Faros ECG monitoring devices. The user-friendly and informative ECG data presentation and intuitive analysis tools of Bittium Cardiac Navigator software solutions make the software efficient and easy to use when analyzing multiple days of ECG recordings. Based on recordings, the software provides information about the electrical cardiac activity of the heart, typical of Holter ECG analysis, and in particular, about arrhythmia and other exceptional events. Bittium Cardiac Navigator is designed for scanning longer measurements efficiently in a shorter time and thus speeding up the final diagnosis.
March 16, 2018 Bittium launched new innovative Bittium Tough Mobile HybridX extension, that gives Bittium Tough Mobile a new user interface and functionalities that are very useful in demanding Public Safety use. Bittium Tough Mobile HybridX extension combines the secure Bittium Tough Mobile smartphone with a functional HybridX accessory. The HybridX accessory is integrated to the Bittium Tough Mobile and is connected to a PMR (Private Mobile Radio) device, such as TETRA or P25.
March 28, 2018 Bittium Medanalytics Oy, a subsidiary of Bittium Corporation, and RemoteA Oy signed a business purchase agreement according to which Bittium Medanalytics Oy purchases RemoteAīs medical remote diagnostic service platform and the product rights of the related medical measurement devices and their interfaces. With the business transaction Bittiumīs offering expanded from measuring and monitoring the electrical activity of the heart and brain to measuring and monitoring sleep apnea. In addition, a third party blood pressure measurement device has been connected to the service platform, and in the future, it is possible to connect also other measurement devices to the system. Biosignal information collected from the patients via the remote diagnostics service platform enables the transfer of information over the internet and it serves as a platform for patient measurement data and specialistsī diagnosis. The business transaction had no significant impact on Bittium Corporationīs financial outlook for 2018. The parties agreed that the value of the transaction will not be published.
April 13, 2018 Bittium announced to have received a purchase order from the Finnish Defence Forces for products included in the Software Defined Radio based Bittium Tactical Wireless IP Network (TAC WIN) system, which is meant for tactical communications. The value of the purchase order is EUR 14.3 million (excl. VAT). The purchase order did not change Bittiumīs financial outlook for the year 2018. The purchase order is based on the framework agreement signed by Bittium and the Finnish Defence Forces on August 9, 2017, according to which the Finnish Defence Forces will order products included in the Software Defined Radio based Bittium TAC WIN system during the years 20182020. According to the framework agreement, Finnish Defence Forces will issue separate purchase orders for the products each year. The products ordered now will be delivered to the Finnish Defence Forces during the year 2018. If materialized in full, the total value of the framework agreement is EUR 30 million (excl. VAT). Bittium issued a stock exchange release about the framework agreement on August 9, 2017.
April 2327, 2018 Bittiumīs secure Bittium Tough Mobile smartphone was part of the Locked Shields 2018 cyber defense exercise organized by the NATO Cooperative Cyber Defence Centre of Excellence (CCDCOE), held in Tallinn, Estonia. It was the worldīs largest and most complex international live-fire cyber defense exercise where more than 1 000 experts from 30 nations participated in total. The annual exercise is a unique opportunity for national representatives of cyber defense to practice protection of national information technology systems and critical infrastructure under the intense pressure of a severe cyber attack.
May 1417, 2018 Bittium showcased the ThingSpace LTE CAT-M1 IoT Reference Hardware Design, which was developed with Verizon, at IoT World 2018 exhibition, held in Santa Clara Convention Center, California, the United States of America. The IoT Reference Hardware Design was designed to allow an OEM the building blocks to get up and running quickly on the Verizon network and ThingSpace platform. Bittium provides open source hardware design documents and offers design services to Verizonīs ThingSpace development partners. Bittiumīs IoT Design Service offerings vary from technology consultation to commercial wireless designs.
May 15, 2018 Bittium received a purchase order from the Finnish Defence Forces for the maintenance and further development of systems and related products meant for tactical communications. The order refers to the Software Defined Radio based Bittium Tactical Wireless IP Network (TAC WIN) system, the Bittium Tough VoIP system for tactical IP calls and data transfer, as well as the products related to the systems, which are used by the Finnish Defence Forces. The purchase order applies to the year 2018 and includes the technical support of the systems and the equipment, software support, upkeep of the system support, management of the system support, and development of new features. The value of the purchase order was EUR 2.3 million (excl. VAT). The purchase order did not change Bittiumīs financial outlook for the year 2018.
May 30, 2018 Bittium Corporationīs subsidiary, Bittium BioSignals Ltd and Cerenion Oy announced a collaboration project on bringing advanced brain monitoring into the array of vital signs monitoring available to intensive care staff. The collaboration aims on providing a comprehensive solution for brain electrical activity monitoring for intensive care patients, by combining Bittium BrainStatus a wireless EEG-monitoring device meant for real-time brain electrical activity to Cerenionīs innovative C-Trend index that interprets EEG signal to a simple score facilitate and accelerate the work of nursing staff.
Recently European CE medical approved wireless Bittium BrainStatus EEG amplifier and electrode headband enable high quality and fast EEG signal measurement. Through the use of Cerenion C-Trend technology this signal data is turned into a simple score that reveals the status of the patientīs brain at the bed-side and without requiring any changes to the care of the patient. The first line of C-Trend-enabled Bittium BrainStatus devices are expected to become available in 2019.
June 1115, 2018 Bittium launched the new Bittium Tough VoIP Softphone software product at the Eurosatory defense exhibition in Paris, France. The new Bittium Tough VoIP Softphone software product is a VoIP client (Voice over Internet Protocol) that can be used for VoIP calls, instant messaging, conference calls and screen sharing in the tactical Bittium Tough VoIP Service network either with a PC or smartphone. Especially useful for tactical use are also the Push-To-Talk (PTT) feature as well as the remote control and sending instant messages to existing third party Combat Net Radios (CNR) through Bittium Tough VoIP Service network and Bittium Tough Comnode terminal or Bittium TAC WIN systemīs router (Radio over IP, RoIP).
July 12, 2018 Bittium expanded its medical technology offering to Switzerland by investing in a Swiss remote diagnostics service company. Bittium and evismo will jointly provide customers with full-scale remote diagnostics service that at this stage includes remote diagnostics service platform, monitoring the electrical activity of the heart, wireless measurement data transfer, and analysis and diagnostics of measurements. The investment was carried out by subscribing new shares in evismo AG, the subscription is carried out in two phases. After the share subscription on July 11th, Bittiumīs holding of evismo was 17.4 percent and, subject to certain commercial terms by March 31, 2019, Bittiumīs holding will be 25 percent. The investment did not change Bittiumīs financial outlook for the year 2018.
August 9, 2018 Bittium expanded its operations in Central Europe by opening a new office in Munich, Germany. Bittiumīs local presence in Germany enables high quality customer support for the local customers, and helps in developing and supporting Bittiumīs international sales network.
August 23, 2018 Bittium launched new waterproof Bittium Faros ECG device and Bittium FastFix patch electrode for ECG measurement at ESC Congress 2018 on August 2529 in Munich, Germany. The new waterproof Bittium Faros 180 and Bittium Faros 360 ECG devices together with the Bittium FastFix patch electrodes make the patientīs life easier during long-term (330 days) ECG recordings. Bittium Faros ECG device together with the Bittium FastFix patch electrode is meant for wireless ECG measurement. The chest-attachable patch electrode can be used for 3 to 7 days at a time, after which measurement can be continued by replacing the patch electrode with a new one. ECG recordings with the waterproof Bittium Faros ECG devices and Bittium FastFix patch electrodes enable the monitored person to be active, do sports and shower without having to remove the device and thus stop the recording.
September 27, 2018 Bittium announced that it will supply its tactical Bittium Tough SDR Vehicular radios together with the ESSOR High Data Rate Waveform (ESSOR HDR WF) to the pilot vehicles of the Spanish Armyīs VCR 8x8 vehicle programme (Vehículo de Combate sobre Ruedas). In the scope of the VCR 8x8 programme the Spanish Army will acquire new combat vehicles and related data transfer systems to replace their current, long-lived combat vehicles. Bittium Tough SDR Vehicular radios will be delivered to the temporary joint venture UTE 8x8 (Unión Temporal de Empresas) formed by the Spanish companies GDELS Santa Bárbara Sistemas, Indra and SAPA. After the pilot phase, the programme will continue with another phase during which a separate procurement decision will be made for the supply of vehicular radios to the combat vehicles that will be deployed by the Spanish Army. Participation in the pilot phase of the programme does not automatically guarantee participation in the following phase of the programme.
November 5, 2018 Bittium Wireless Ltd, a subsidiary of Bittium Corporation, and Finnish Defence Forces signed a framework agreement on Bittium Tough Comnode terminals and related accessories. The framework agreement covers the years 20182022. The maximum value of the framework agreement is EUR 8.3 million (excl. VAT). The Finnish Defence Forces will issue separate purchase orders in several batches during the validity of the framework agreement. The framework agreement did not change Bittiumīs financial outlook for the year 2018. Bittium announced on October 3, 2018 that the Finnish Minister of Defence Jussi Nii-nistö had authorized the Finnish Defence Forces Logistics Command to enter into a framework agreement with Bittium Wireless Ltd on the purchase of Bittium Tough Comnode terminals and related accessories.
November 23, 2018 Bittium announced that its cooperation partner, Austrian information technology company Kapsch BusinessCom AG, was informed by the Austrian defense administration (Bundesministerium für Landesverteidigung, BMLV) today that it should be selected as the provider of the new IP-based tactical communication system for the Austrian Armed Forces, in case no appeals by the losing parties of the competitive bidding will be filed during the next 10-days appeal period. This is a typical process in such public competitive bidding. Bittiumīs products for tactical communications are a significant part of Kapsch BusinessComīs bid, including the Software Defined Radio based Bittium Tactical Wireless IP Network (TAC WIN) system, which will be the core of the new communication system, as well as Bittium Tough Comnode and Bittium Tough VoIP products. On December 4, 2018 Bittium was informed that the 10-day appeal period has expired and no appeals have been made. The signing of the contract was scheduled to December 2018. Bittiumīs share of the total value is around EUR 30 million (excl. VAT). The product deliveries are expected to take place during the years 20192021 and the majority of the net sales is estimated to realize during the years 2020 and 2021. This did not change Bittiumīs financial outlook for the year 2018.
December 10, 2018 The new waterproof Bittium Faros ECG devices, Bittium Cardiac Navigator and Bittium Cardiac Explorer analysis software received FDA 510(k) medical device clearances in United States. The FDA 510(k) clearance received by the Bittium Faros ECG device includes the built-in algorithms for detection of arrhythmias. The algorithms can be used to automatically identify sequences in the heart measurement data that include atrial fibrillation, tachycardia, bradycardia, and pauses in the operation of the heart. The received FDA 510(k) clearance also allows the use of Bittium Faros ECG measuring devices for pediatric ECG measurements. The received clearance allows the use of Bittium Faros either in long-term ECG recording or in remote wireless cardiac monitoring. The received FDA 510(k) clearance allows cardiologists to use the Bittium Cardiac Navigator and Bittium Cardiac Explorer software solutions for official analysis of ECG recordings collected with the Bittium Faros ECG monitoring devices.
December 13, 2018 Bittium Wireless Ltd, a subsidiary of Bittium Corporation and Finnish Defence Forces Logistics Command signed an agreement on the purchase of Bittium Tough SDR handheld and vehicle radios, and their related accessories. The value of the purchase agreement is approximately EUR 10.5 million (excl. VAT) at the maximum. The new software-defined-radio based tactical radios will be used at the first phase by the Army and the delivery will be completed at the latest by the end of the year 2020. This purchase agreement did not change Bittium Corporationīs financial outlook for the year 2018.
The Purchase Agreement is based on the Letter of Intent for purchase of new tactical radios, signed by Bittium and Finnish Defence Forces on August 8, 2017. The Purchase Agreement signed today is a natural continuum to the Letter of Intent. Bittium issued a stock exchange release on the Letter of Intent on August 8, 2017. The Finnish Minister of Defence Jussi Niinistö authorized the Finnish Defence Forces Logistics Command to enter into an Agreement with Bittium Wireless Ltd on December 11, 2018.
The purchase agreement includes terms for optional additional purchase, according to which, the Finnish Defence Forces have an option to purchase additional tactical radios and their related accessories, training and system management for the use of Army, Air Force and Navy, based on the prices agreed in the Purchase Agreement. If these optional additional purchase amounts would materialize in full, the total value of the purchase would be approximately EUR 207 million (excl. VAT) at the maximum. As agreed in the Letter of Intent, the Finnish Defence Forces aim at making these additional purchases during the next ten years. The materialization of the purchase is affected by the yearly state budget allocations for the administrative of the Ministry of Defence. There will be separate purchase orders for these optional additional purchases.
During 2018, Bittium showcased its products and services at several exhibitions around the world.