Resilient Financial Performance and Continued Strategic Progress in 2019/20 despite COVID-19 - Seite 2

Within our Enterprise segment our customers maintained solid volume forecasts and orders for our products for a large part of the year. However, towards the end of the year these volume forecasts for Q4 were converted into orders that were smaller than forecasted by the customers. Overall, this led to 2019/20 developing quite differently than expected and to lower revenues than initially expected for the year as indicated with the updated revenue outlook on 24 August 2020.

In these times of uncertainty with the COVID-19 pandemic and increased macro-economic volatility, RTX has managed to achieve earnings (EBITDA and EBIT) within the original expectations set out at the beginning of the year. We have managed costs tightly and have among other things delayed additional headcount investments, and instead redeployed employees internally between projects to maintain full momentum of the most highly prioritized development activities both externally for our framework agreement customers and for our internal development projects.

As always, we have reassessed our growth strategy during the year. We still firmly believe that the uniform business model and go-to-market approach across our three target market segments – Enterprise, ProAudio and Healthcare – that we have been working towards over the last couple of years, remain fundamentally sound and robust. Thus, our overall growth strategy for the coming years remains intact: We deploy our wireless capabilities to create recurring revenue as an ODM/OEM supplier via long-term framework agreements with our customers in the B2B Enterprise, ProAudio and Healthcare markets.

In line with our strategy we continue to grow recurring revenues from product sales and royalties and decreasing the share of revenues from engineering services. We continue to see significant interest from both existing and potential new customers in deepening and initiating cooperation with RTX to benefit from RTX’s wireless capabilities as embodied in our various product platforms. Among many other things, we have continued development activities during the year on the latest two large framework agreements to customers within Enterprise and ProAudio respectively, and we expect to launch the first products under both these agreements during 2020/21.