In January Bittium strengthened the competitiveness as a provider of secure communication solutions for defense, safety and other authorities markets by acquiring the Safemove business from Birdstep Technology ASA, based in Norway. The acquired Birdstep Technology Oy provides its customers with high quality information security solutions for mobile devices and portable computers. Bittium's product portfolio expanded from the existing information secure device solutions with the protection of data communications. Safemove software can be utilized in several Bittium's products and product platforms, such as in Bittium Tough Mobile secure smartphone and in Bittium's Secure IoT solutions and services as well as in defense products. The debt free cash purchase price was EUR 1.8 million. The acquisition has no significant impact on Bittium's balance sheet, net sales and financial position. The company is reported as part of Bittium from January 1, 2015 onwards.
In February Bittium announced to have integrated an information security solution to its Bittium IoT Device Platform that enables secure connectivity from the IoT device to the customer's cloud services. The Bittium IoT Device Platform is a compact and powerful platform, which enables development of different kind of products that have wireless connectivity and various sensors for the Wearable, Healthcare, Machine-to-Machine communication and Industrial Internet markets. The integrated security software protects the IoT devices from network attacks and secures connections between the devices and services.
Bittium aims at bringing its products to the global defense and other authority markets and continued its sales and marketing efforts and R&D investments into these markets. During the first quarter Bittium participated in several exhibitions showcasing its tactical communication products and solutions, secure Bittium Tough Mobile LTE smartphone, Bittium IoT Device Platform and Bittium Safemove software. These trade fairs were IDEX 2015 in Abu Dhabi, United Arab Emirates, Mobile World Congress 2015 in Barcelona, Spain, UK Health Week 2015 in London, CeBIT 2015 in Hannover, Germany, and Mobile Government Summit 2015 conference in London, England.
The development of Bittium Tough Mobile that is targeted for cyber security and other demanding use of public safety authorities was continued during the first quarter. The product is planned to be ready for deliveries to customers during the second half of this year.
The demand for Bittiumīs R&D services for mobile infrastructure customers continued as stable during the second quarter of the year. The demand was driven by the use of LTE technology and the need to develop low power and micro base stations. Also the demand for Bittiumīs R&D services in IoT (Internet of Things) markets remained as stable.
In April, subsidiary of Bittium Corporation and Ministry of Mexican Communication and Transportation (Secreteria de Comunicaciones y Transportes, SCT) have signed an agreement regarding the development of three types of android-based L-band mobile devices for their Mexsat program. The value of this development agreement is approximately USD 21.9 million (approximately EUR 19.5 million as per exchange rate of April 30, 2015) . The development work of the products was started during the second quarter of the year which also increased the net sales of the quarter.
In the third quarter the R&D phase of Bittium Tough Mobile at the final stage and the first product deliveries will be made already during this year. The authorities markets are slowly developing markets by their nature and the sales of Bittium Tough Mobile is expected to develop steady along the market development pace.
The demand for Bittiumīs R&D services for mobile infrastructure customers continued stable during the third quarter of the year. The demand was driven by the use of LTE technology and the need to develop low power and micro base stations.
Bittium continued its efforts in bringing its defense market targeted product portfolio to the international defense markets, and delivered the first small pilot delivery of its tactical wireless IP network system for a customer abroad.
The defense market sales cycles are long by its nature and winning significant deals take several years. Also the deliveries of tactical communication products, systems and services to the Finnish Defence Forces continued as well as the good cooperation with the Finnish Defence Forces in developing Bittium tactical communication system.
The development of the mobile devices for Mexican government authority has been started. Due to the failed launch of customerīs first satellite, the overall project schedule is expected to be delayed from the original. Over half of the contract revenue is expected to materialize during 2016.
During the third quarter, Bittium participated in the Comprehensive Security exhibition in Tampere, Finland, as well as in the DSEI 2015 exhibition targeted for defense industry in London, UK, where the company presented the products targeted for defense and authorities customers.
In the fourth quarter Bittium launched Bittium Secure Suite device management and encryption software that complements Bittium Tough Mobile smartphone with new software and services. Bittium Secure Suite enables the most effective usage of the device security features, secure remote management, remote attestation and securing the data network connections of the device. Bittium Tough Mobile smartphone together with Bittium Secure Suite form a unique, complete, reliable system for processing and transferring sensitive and classified material and securing critical communication.
In December the Finnish Communications Regulatory Authority granted approval for the Mobile Security and Public Safety targeted Bittium Tough Mobile LTE smartphone and related device management and information security management system to process National classification level IV (ST IV, national restricted) material. Bittium's mobile solution is the first product to receive an official encryption product classification in Finland, which can on top of creating and processing of classified information also transfer material between a smartphone and connected backend solutions.
Towards the end of the year the R&D phase of Bittium Tough Mobile was finalized and the product deliveries started in a form of small pilot orders, mainly for customers abroad. In November Bittium exhibited the phone at the British APCO exhibition in Newcastle, UK, targeted for Public Safety officials. The authorities markets are slowly developing markets by nature and the sales of Bittium Tough Mobile is expected to develop steadily along the market development pace.
The development of the tactical communication system Bittium Tactical Wireless IP Network (TAC WIN) was continued during the fourth quarter and Bittium received from the Finnish Defence Forces a new order for system product deliveries for 2016. During the quarter Bittium also received an order from the Finnish Defence Forces for further development of the TAC WIN waveform to enhance the system with additional features and optimized performance. The Finnish Defence Forces also ordered a productization of the European high data rate radio waveform developed in the ESSOR program to the Bittium TAC WIN system used by the Finnish Defence Forces.
Bittium continued its efforts to bring the defense market targeted product portfolio to the international defense markets, and delivered the first pilot delivery of its Tactical Wireless IP Network system for a customer abroad. The company aims at other similar international openings during the year 2016 as well. Bittium exhibited its tactical communications products at the AUSA (Association of the United States Army) Annual Meeting & Exposition in October in Washington D.C., USA. The sales cycles in the defense markets are long by their nature and winning significant deals takes several years.
The demand for Bittiumīs R&D services for mobile infrastructure customers continued stable also during the fourth quarter. The demand was driven by the use of LTE technology and the need to develop smaller LTE base stations. The development of the mobile devices for Mexican government authority continued well during the fourth quarter.