Report by the Board of Directors

Research and Development

Bittium continued R&D investments in its own products and product platforms. The investments increased significantly during the year 2017 and were 29.1 percent of net sales. The investments focused mainly on expanding the tactical communication product portfolio targeted to defense industry and on the development of different terminal products and their related software targeted for Mobile Security and Public Safety markets. In 2017, Bittium started to develop new Software-Defined Radio based Bittium Touch SDR™ product family that includes tactical Bittium Tough SDR handheld and Bittium Tough SDR vehicle radios. In addition, Bittium continued to develop Bittium Tough Mobile smartphone and its next generation research and development. The investments were also continued into the further development of the products intended for measuring and monitoring of biosignals.

A significant part of the capitalized R&D investments is related to the further development of the Bittium Tough Mobile smartphone and the related security software and investments related to developing tactical communication handheld and vehicle radios.

 

R&D investments, MEUR  2017
12 months
2016
12 months
Total R&D investments 15.0 6.9
Capitalized R&D investments -5.8 -0.9
Depreciations and impairment of R&D investments 0.3 0.3
Cost impact on income statement 9.6 6.3
R&D investments, % of net sales 29.1% 10.8%

 

Capitalized R&D investments in balance sheet, MEUR  2017
12 months
2016
12 months
Balance sheet value in the beginning of the period 6.4 5.6
Additions during the period 5.8 0.9
Acquisitions of the business   0.2
Depreciations and impairment of R&D investments -0.3 -0.3
Balance sheet value at the end of the period 11.9 6.4