The global economic uncertainty may affect the demand for Bittiumīs services, solutions and products and provide pressure on e.g. pricing. In the short term such uncertainty may affect, in particular, the utilization and chargeability levels and average hourly prices of R&D services. Growing political uncertainty may also affect the demand for Bittiumīs services, solutions and products and the price competitiveness in the different geographical areas. Bittium is also increasingly exposed to legal, economic, political and regulatory risks related to the countries in which its suppliers and other cooperation partners are located. Such risks may result in delays in deliveries, currency losses, elevated costs, or litigations and related costs.
Bittiumīs customer base includes, among others, companies operating in the field of telecommunication, defense and other authorities, as well as companies delivering products to them, the Company is exposed to market changes in these industries.
A significant part of Bittiumīs net sales accumulates from selling products and R&D services to defense and other authorities, as well as companies delivering products to them. Deviation in anticipated business development with such customer concentrations may translate as a significant deviation in the Bittiumīs outlook, both in terms of net sales and operating result, during the ongoing financial period and thereafter.
Bittium seeks to expand its customer base on a longer term and reduce dependence on individual companies and hence the Company would thereby be mainly affected by the general business climate in the industries of the companies belonging to Bittiumīs customer base instead of the development of individual customer relationships. The more specific market outlook has been presented in this Report by the Board of Directors in the “Market outlookī section.