Bittium Oyj — Earnings Release 2020

Nov 27, 2020

Bittium Corporation Lowers Its Financial Outlook for 2020

Bittium Corporation Lowers Its Financial Outlook for 2020

Stock Exchange Release

Free for publication on November 27, 2020 at 2.45 p.m. (CET+1)

Bittium Corporation Lowers Its Financial Outlook for 2020

Bittium Corporation lowers its financial outlook for 2020. The company expects
that the net sales in 2020 will be at the same level or grow from the previous
year (EUR 75.2 million in 2019), and the operating result will be lower than in
the previous year (EUR 6.3 million in 2019). Earlier, Bittium expected that the
net sales in 2020 will grow from the previous year (EUR 75.2 million in 2019)
and the operating result will be at the same level as in the previous year
(operating profit of EUR 6.3 million in 2019).

The reason for the decrease in the financial outlook is the postponement of some
major product deliveries and several projects to 2021 caused by the coronavirus
pandemic (SARS-CoV-2). As previously stated, the effects of the coronavirus
pandemic have slowly begun to show in all of the company’s product and service
areas, and the exceptional circumstances have significantly slowed down the
company’s business. The progress of existing projects has slowed down and the
start of new projects has been postponed. In addition, the restrictions caused
by the pandemic slow down the new customer acquisition.

Despite of the global uncertainties, the company still believes that the impacts
of the coronavirus pandemic are temporary and that in the long run the company
has excellent opportunities to grow internationally. The effects of the pandemic
are likely to be reflected in net sales and operating result in the first half
of 2021.  Bittium’s significant customers are leading international companies in
their fields, and cooperation with them has continued strong even during the
pandemic.

Bittium aims to be a significant global provider of secure and safe
communication solutions in the defense and public safety markets, and a leading
provider of connectivity solutions and R&D services for different industries, as
well as a significant provider of remote measuring and diagnostics solutions for
measuring and analyzing biosignals.

Outlook for 2020 as published on October 30, 2020 in the Business Review January
-September 2020

The world-wide new coronavirus (SARS-CoV-2) pandemic significantly affects the
global economy and market situation. The prevailing uncertainties in the markets
cause weak visibility to the market situation.

Despite the uncertainties caused by the prolongation of the pandemic situation,
the company maintains its financial outlook for the year 2020, however,
continues following the market situation development constantly. The most
significant risks in the outlook for the rest of the year relate to
uncertainties related to the timing of product deliveries. If the outlook should
change, the company may need to quickly re-evaluate the situation.

Bittium expects that the net sales in 2020 will grow from the previous year (EUR
75.2 million) and the operating result will be at the same level than in the
previous year (operating profit of EUR 6.3 million). The level of the operating
profit in 2020 will be impacted by the investments in the international growth
and depreciations of the R&D investments.

In Oulu, November 27, 2020

The Board of Directors
Bittium Corporation

Further information:

Hannu Huttunen
CEO
Tel. +358 40 344 3507

Distribution

Nasdaq Helsinki Oy
Main media

Bittium

Bittium specializes in the development of reliable, secure communications and
connectivity solutions leveraging its 35 year legacy of expertise in advanced
radio communication technologies. Bittium provides innovative products and
services, 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.
Bittium also provides healthcare technology products and services for biosignal
measuring in the areas of cardiology, neurology, rehabilitation, occupational
health and sports medicine. Net sales in 2019 were EUR 75.2 million and
operating profit was EUR 6.3 million. Bittium is listed on Nasdaq Helsinki.
www.bittium.com

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