Bittium´s net sales in January-December 2017 decreased by 19.6 percent year-on-year to EUR 51.6 million (EUR 64.2 million, in 2016).
The share of the product-based net sales was EUR 16.3 million (EUR 11.9 million, in 2016), which resulted mainly from the product deliveries of the tactical communication system, product deliveries of Bittium Tough Mobile LTE smartphones and related security software, and deliveries of products for measuring and monitoring biosignals. The increase in the product-based net sales year-on-year resulted mainly from product sales in the medical business acquired at the end of 2016 and increased deliveries of Bittium Tough Mobile LTE smartphones.
The share of the services-based net sales decreased significantly and was EUR 34.9 million (EUR 51.8 million, in 2016). The decrease in the services business net sales was caused by the termination of significant customer cooperation with a global network equipment manufacturer. Bittium has won new R&D services projects for wireless products, however, it has not been able to replace the decrease in the net sales in total.
Operating loss was EUR -6.2 million (operating profit of EUR 2.5 million, in 2016). This loss was caused by the significant decrease in the net sales and significant R&D investments.
Cash flow from operating activities was EUR -0.0 million (EUR -1.7 million, in 2016). Net cash flow was EUR -32.0 million, including the EUR 10.7 million dividend payment in April and the investments made into the Company´s new office building in Oulu, Finland and into own product development (EUR -27.9 million, in 2016, including the EUR 10.7 million dividend payment and the investments made into the Company´s new office building in Oulu, Finland). Equity ratio was 85.6 percent (87.0 percent, December 31, 2016). Net gearing was -52.9 percent (-70.3 percent, December 31, 2016).
Bittium continued R&D investments in its own products and product platforms and the amount of R&D investments increased significantly during 2017. R&D investments in 2017 were EUR 15.0 million (EUR 6.9 million in 2016) which was 29.1 percent of net sales (10.8 percent of net sales in 2016). EUR 5.8 million were capitalized (EUR 0.9 million in 2016). The amount of capitalized R&D investments in the balance sheet at the end of 2017 were EUR 11.9 million (EUR 6.4. million in 2016).