Report By the Board of Directors

Financial performance in January-December 2015

Bittium“s net sales during January-December 2015 grew by 7.8 percent year-on-year to EUR 56.8 million (EUR 52.7 million, in 2014).

The growth in net sales was mainly driven by the deliveries of special terminal products and related R&D services, as well as other products for authorities use.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, MEUR 1–12/2015 
1–12/2014
Continuing operations 12 MONTHS  12 MONTHS 
     Net sales 56.8 52.7
     Operating profit / loss 2.3 0.8
     Financial income and expenses -0.2 -0.2
     Result before tax 2.1 0.6
Result for the period from continuing operations 2.3 1.3
Result for the period from discontinuing operations 539.0 11.2
Result for the period 541.3 12.5
Total comprehensive income for the period 541.5 12.9
     
Result for the period attributable to:    
     Equity holders of the parent 541.3 12.5
Total comprehensive income for the period attributable to:    
     Equity holders of the parent 541.5 12.9
     
Earnings per share from continuing operations, EUR 0.020 0.010
  • Cash flow from operating activities was EUR 2.1 million (EUR 10.5 million, in 2014). The cash flow includes the operating cash flow of the Automotive business until June 30, 2015.
  • Net cash flow was EUR 79.5 million (EUR 0.3 million, in 2014). Net cash flow includes the dividend payment of EUR 5.3 million in April, the cash flow of the Automotive business until June 30, 2015, and the cash flows related to the sale of the Automotive business and cancelled demerger process, as well as cash flows resulting from the voluntary public tender offer for the company“s own shares and stock options and from the costs resulting from the process.
  • Equity ratio was 90.5 percent (62.3 percent, December 31, 2014).
  • Net gearing was -88.2 percent (-37.4 percent, December 31, 2014).
  • The key figures January–December 2015 mentioned above are essentially affected by the sale of the Automotive business and thereof received net proceeds.

Quarterly figures

GROUP'S NET SALES AND OPERATING RESULT, CONTINUING OPERATIONS, MEUR  4Q15 3Q15 2Q15 1Q15  4Q14
Net sales 15.2 11.1 15.3 51.1 16.1
Operating profit (loss) 0.8 0.0 1.0 0.5 1.8
Operating profit (loss) without non-recurring costs 0.8 0.0 1.0 0.5 2.4
Result before taxes 0.9 0.1 0.8 0.4 1.6
Result for the period 1.1 0.1 0.8 0.4 2.4

Non-recurring items

Non-recurring items are exceptional gains and losses that are not related to normal business operations and occur only seldom. These items include capital gains or losses, significant changes in asset values such as write-downs or reversals of write-downs, significant restructuring costs, or other items that the management considers to be non-recurring. When evaluating a non-recurring item, the euro translation value of the item is considered, and in case of a change in an asset value, it is measured against the total value of the asset.

In 2014 the following non-recurring items were included:

  • Non-recurring income of approximately EUR 1.1 million in the Wireless Business Segment resulting from the reorganization cases of TerreStar companies during the third quarter of 2014; and
  • A total of EUR 0.6 million of non-recurring costs resulting from the Wireless Business Segment“s personnel layoffs and from the acquisition costs of Safemove during the last quarter of 2014.
DISTRIBUTION OF NET SALES BY MARKET AREAS, MEUR AND %  4Q15 3Q15 2Q15 1Q15  4Q14
Asia 0.0
0.0%
0.1
0.6%
0.1
0.6%
0.0
0.2%
0.2
1.5%

Americas
2.9 
19.2%
1.0
9.1%
2.2
14.6%
2.1
14.2%
0.6
3.5%

Europe
12.3
80.7%
10.1
90.4%
13.0
84.9%
13.0
85.6%
15.3
94.9%