Annual Report 2019
Report by the Board of Directors
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Business Development in January–December 2019

During the first half of the year, Bittium launched a new ultra secure Bittium Tough Mobile 2 smartphone. The core of the information security of the new Bittium Tough Mobile 2 is its multilayered security structure, which is based on the hardened Android™ 9 Pie operating system, unique hardware solutions, and the information security features and software integrated in the source code. The multilayered information security ensures that both the data stored in the device and data transfer are protected as effectively as possible.

The customer deliveries of the Bittium Tough Mobile 2 smartphone started during the second half of the year. Modern smartphone design combined with the world´s highest security has attracted market interest. Continuous cyber security attacks raise awareness of the importance of mobile security. Also the deliveries of the first generation Bittium Tough Mobile smartphones continued to the customers.

Bittium announced a new Multicontainer feature for the Bittium Tough Mobile smartphone. It enables the use of several secure container workspaces. The users of secure workspaces can safely download approved applications from their own organizations´ application libraries. It enables the users to easily handle confidential information of several organizations as well as their personal data and applications with the same Bittium Tough Mobile smartphone.

Also a new version of Bittium SafeMove® software with important new features to support cyber resilient field operations under disruptions was launched.

The delivery volumes of the satellite smartphone developed to the Mexican authorities fell short of last year´s target. However, in 2020, Bittium aims at volume deliveries of the products.

The development work of the new Bittium Tough SDR soldier and vehicle radios has taken slightly longer than expected. Field tests of the products have been conducted during the last half of 2019, and the actual product deliveries to the customers are expected to begin in the early 2020. The products have been designed to operate under extreme conditions. They have a very wide frequency range with unique interference tolerance and strong security.

In the defense business the product deliveries of tactical communication system to Austrian Defence Forces began in the second half of the year. This cooperation has been a major step in the internationalization of Bittium´s tactical communication product portfolio. Bittium´s tactical backbone network forms the core of the Austrian Defence Forces´ new tactical communication system. In addition, Bittium also deploys Bittium Tough Comnode and Bittium Tough VoIP products.

Cooperation with the Finnish Defence Forces continued strong and Bittium received multiple orders from the Finnish Defense Forces during 2019.

The first purchase order was EUR 3.4 million, for maintenance and further development of Bittium TAC WIN™ and Bittium Tough VoIP™ systems during 2019–2020. The second purchase order was EUR 11.5 million in total, for Bittium TAC WIN™ products and Bittium Tough Comnode™ terminals. The third purchase order was for porting the European ESSOR (European Secure SOftware-defined Radio) program´s OC1 (Operational Capability 1) phase wideband waveform to the Bittium Tough SDR radios that will be delivered to the Finnish Defence Forces. The porting of the waveform to the national software-defined radios enables compatibility between radios used in European coalition operations, in accordance with the goals of the ESSOR programme. The value of the purchase order was approximately EUR 1.1 million. The purchase order also included options for the years 2020–2021 with the total value of approximately EUR 2.5 million. The fourth order was narrowband waveform development work for the tactical Bittium Tough SDR radios. Along with the ordered waveform development work, the Finnish Defence Forces can start field tests with the radios and further waveform development in co-operation with Bittium for the needs of the Finnish Defence Forces.

From the Estonian Defence Forces Bittium received an order for the Bittium Tough SDR radios and Bittium TAC WIN system products. Bittium Tough SDR radios and Bittium TAC WIN products complement the tactical communications system that has been delivered to the Estonian Defence Forces already previously.

Bittium was granted the ISO 27001:2013 Information Security Management Certificate that includes Bittium´s business and support processes, information security, personnel and premises safety, as well as continuous improvement methods. ISO 27001:2013 specifies the requirements for establishing, implementing, maintaining and continually improving an information security management system within the context of the organization. It also includes requirements for the assessment and treatment of information security risks tailored to the needs of the organization.

Cooperation with the major US cardiac remote monitoring provider Preventice continued to be significant. Bittium and Preventice have together developed a solution that enhances doctor and patient experience in remote cardiac monitoring. The deliveries of ECG devices based on Bittium Faros ECG technology to Preventice for this complete solution, continued to be significant during the year. In addition Bittium won several new customers in Australia, Asia and Europe.

Bittium launched Bittium HolterPlus™ remote cardiac monitoring solution. Bittium HolterPlus solution extends the physician´s reach outside of the hospital or medical institution by remotely monitoring the discharged patient from for example home or nursing home. Bittium HolterPlus allows the remotely monitored patient´s ECG measurement data to be stored and transferred securely from the monitoring device to the medical remote diagnosis service platform. From the platform the ECG recording can be downloaded to analysis software for a cardiologist to diagnose, after which the treating physician receives the diagnosis and possible instructions for further patient care.

Bittium continued to develop 5G technology and various connectivity solutions for its customers, mainly in Europe. Along with its innovative product development services, Bittium launched a software robotics solution based on its own secure platform. Robotic Process Automation (RPA) is a method for streamlining business processes by automating laborious manual tasks, which are time-consuming, repetitive and prone to errors.

In a total, the sale of the product development services decreased year-on-year affected by the company´s own significant large R&D projects that tie experts into internal product development.