Research and Development
Bittium continued investments in its own products and solutions. In January-December 2024 R&D investments were EUR 13.5 million (EUR 20.2 million) representing 15.9 percent of the net sales (26.9 percent). The R&D investments were mainly aimed at continuously improving the competitiveness and developing the features of the products, systems and their software of Medical and Defense & Security Business Segments.
At the end of 2023, in the updated strategy Bittium aligned to seek a change from a R&D organization to a customer-oriented, growth-oriented operating model through its segment organizations. Between 2016 and 2023, the company’s two Business Segments, Defense & Security and Medical, have invested strongly in the development of their own products. This has maintained the company’s high average annual R&D investment level of around EUR 20 million, corresponding to an average of approximately 25 percent of the company’s annual net sales. In these both product-oriented Business Segments the large product development projects have proceeded into commercial phase, and the focus will be on continuous improvement of the competitiveness of existing products and development of features.
| R&D investments, MEUR | 1-12/2024 | 1–12/2023 |
|---|---|---|
| Total R&D investments | 13.5 | 20.2 |
| Capitalized R&D investments | -5.6 | -7.2 |
| Depreciations and impairment of R&D investments | 5.6 | 5.6 |
| Cost impact on income statement | 13.5 | 18.6 |
| R&D investments, % of net sales | 15.9% | 26.9 % |
| Capitalized R&D investments in balance sheet, MEUR | 1-12/2024 | 1–12/2023 |
|---|---|---|
| Balance sheet value in the beginning of the period | 50.5 | 48.8 |
| Additions during the period | 5.6 | 7.2 |
| Depreciations and impairment of R&D investments | -5.6 | -5.6 |
| Balance sheet value at the end of the period | 50.5 | 50.5 |