Bittium Oyj: Cooperation with significant customer of Bittium Corporation will reduce

Regulatory News:

Bittium Corporation has received information according to which significant customer cooperation with a global network equipment manufacturer will reduce during 2017. According to the information received, if the planned actions of the customer will materialize in full, these actions might have a negative effect to Bittium’s net sales and operating result in 2017.

The reduction of the cooperation will not have an effect on the Bittium’s outlook for 2016 published in the half year financial report January-June 2016. Bittium expects further that the net sales in 2016 will grow from the previous year (net sales of EUR 56.8 million, in 2015). The development of the operating result includes still many uncertainties and therefore the company has decided not to give guidance on the development of the operating result. These uncertainties include possible non-recurring investments in building long-term growth and significant variations in the operating result between the quarters due to the timing of product deliveries.

Bittium will publish the outlook for 2017 in connection with the financial statement bulletin January-December 2016.

As part of the strategy work, Bittium will evaluate the effects of the reduction of the cooperation on the financial targets given on July 1, 2015 in connection with company’s strategic guidelines. These financial targets published were as follows: The target during 2015 - 2017 is to grow the net sales at least 10 % annually and reach EBIT level 10 % of net sales at the latest in 2017. Bittium targets, by the year 2017, to clearly increase the share of net sales generated from own products and product platforms, from the 26.7 % level of net sales in 2014.

Bittium will publish its interim report January-September 2016 on November 3, 2016 at 8.00 am (CEST+1).

Oulu, October 5, 2016
Bittium Corporation
The Board of Directors

Distribution:

Nasdaq Helsinki Ltd
Main media

Bittium

Bittium specializes in the development of reliable, secure communications and connectivity solutions leveraging its 30 year legacy of expertise in advanced radio communication technologies. Bittium provides innovative products and customized solutions based on its product platforms and R&D services complementing its communications and connectivity solutions. Bittium offers proven information security solutions for mobile devices and portable computers. Net sales of continuing operations in 2015 were EUR 56.8 million and operating profit was EUR 2.3 million. Bittium is listed on Nasdaq Helsinki. www.bittium.com

This information was brought to you by Cision http://news.cision.com

View source version on businesswire.com: http://www.businesswire.com/news/home/20161004006735/en/