Annual Report 2019
Report by the Board of Directors
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Research and Development

Bittium continued significant investments in its own products and product platforms.

In January–December 2019 the investments were EUR 25.1 million, representing a 33.4 percent of net sales.

The investments focused mainly on the development of the tactical communication system and its products targeted to the defense industry, different authorities´ and special terminal products and their related security software, and medical technology products.

A significant part of the capitalized R&D investments is related to developing software defined radio based tactical communication handheld and vehicle radios (Bittium Tough SDR product family), further development of tactical networks, development of the secure smartphones and related security software, as well as development of medical technology products.


R&D investments, MEUR  2019
12 months
12 months
Total R&D investments 25.1 21.6
Capitalized R&D investments -15.6 -15.1
Depreciations and impairment of R&D investments 3.1 0.4
Cost impact on income statement 12.6 6.9
R&D investments, % of net sales 33.5% 34.4¤


Capitalized R&D investments in balance sheet, MEUR  2019
12 months
12 months
Balance sheet value in the beginning of the period 26.6 11.9
Additions during the period 15.6 15.1
Acquisitions of the business    
Depreciations and impairment of R&D investments -3.1 -0.4
Balance sheet value at the end of the period 39.1 26.6