cooperation partner, Austrian information technology company Kapsch
BusinessCom AG, was informed by the Austrian defense administration
(Bundesministerium für Landesverteidigung, BMLV) today that it should be
selected as the provider of the new IP-based tactical communication
system for the Austrian defense forces. Bittium’s products for tactical
communications are a significant part of Kapsch BusinessCom’s bid,
including the Software Defined Radio based Bittium Tactical Wireless IP Network™ (TAC
WIN) system, which will be the core of the new communication system, as
well as Bittium Tough Comnode™ and Bittium Tough VoIP™ products.
After the decision
given today by the Austrian defense administration, a 10-day appeal
period starts, during which, the losing parties of the competitive
bidding can make a complaint of the ministry’s decision to the court.
This is a typical process in such public competitive bidding. Bittium
will follow up the situation and issue a stock exchange release without
delay as more information is available.
Bittium’s share of the total value of the winning bid will be around EUR
30 million (excl. VAT). The product deliveries are expected to take
place during the years 2019-2021 and the majority of the net sales is
estimated realize during the years 2020 and 2021. This will not change
Bittium's financial outlook for the year 2018, published on August 8,
2018 in the company’s half year interim report.
The bid was made for
a large-scale, internationally tendered programme called the Future
Tactical Communications Network (FTCN). In the programme the tactical
communications of the Austrian defense forces will be renewed with a
complete IP-based (Internet Protocol) system. The core of the system
will be the Software Defined Radio based Bittium Tactical Wireless IP Network™
(TAC WIN) system. Kapsch BusinessCom will integrate and deliver the
complete system to the Austrian defense forces, including also their own
and third-party solutions.