Developing communication technology Bittium published its first quarter interim report. The operating result improved from the previous year, but was negative due to delivery difficulties due to component shortages.
In January – March, Bittium’s net sales rose to EUR 18.4 million from EUR 17.0 million in the comparison period. The share of service-based business was 38.0 per cent, compared with 34.3 per cent a year earlier.
The operating result in January – March was a loss of EUR -1.0 million, compared with EUR -1.5 million a year earlier.
EBITDA rose to EUR 1.6 million from EUR 1.0 million in the comparison period.
Earnings per share for the first quarter were EUR -0.034, compared to EUR -0.044 a year earlier.
“The year 2022 started a little better than we expected. The world political situation caused by Russia’s attack on Ukraine is reflected in the defense market. States are increasing their defense budgets, which is affecting demand for defense industry products and services. We believe that this will also have a positive effect on the demand for Bittium’s tactical communication system products and information security solutions, ”says the CEO. Hannu Huttunen in the results bulletin.
Bittium has no business in Russia, Ukraine or Belarus.
“The shortage of components will continue to affect our product business during the rest of the year.”
The order backlog increased by 13 percent from the end of 2021 and was EUR 33.3 million.
“The growth in the order backlog was mainly in the products and services of the information security and defense industry, as well as in medical technology products.”
There is a shortage of components
The global disruption in the availability of electronic components and the spread of new variants of the coronavirus are having a significant impact on the global market. More than 70 percent of Bittium’s net sales come from products and related systems, and the current shortage of components causes significant uncertainty about the development of Bittium’s product net sales during 2022.
Because of these uncertainties, the company said, as in the previous report, that at this point in the year, it will exceptionally publish only the first-half outlook instead of the full-year outlook.
Bittium still estimates that net sales in the first half of 2022 will be at the same level as in the previous year (EUR 39.7 million in January-June 2021) and that the operating result will be a loss (operating loss of EUR -0.7 million in January-June 2021). However, the company now also said the second-quarter operating result is expected to be positive.
No consensus forecast was available for Bittium.
Inderes Anticipated a stable quarter-on-quarter revenue and roughly a loss-making result from the seasonally weak quarter due to component shortages. Inderes expected a turnover of EUR 17 million and an operating loss of EUR -1.4 million.
Source: Arvopaperi by www.arvopaperi.fi.
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