SAF Tehnika non-audited consolidated net sales for the second quarter of financial year 2014/15 were 3.6 million EUR, increasing by 28% or 0.8 million EUR compared to the second quarter of the previous financial year and being by 14% more than sales in the previous quarter – Q1 of FY 2014/2015. Sales in Europe and the CIS region represented the largest part of the 2nd quarter’s turnover (46%). Sales there rose by 68% or 0.68 million EUR compared with the same quarter of last financial year due to the Group’s ability to provide products and solutions specific for particular customer needs – like low latency data transmission, industrial applications where fiber is not available and others. CIS part is still small in the region’s sale. Sales in Asia Pacific, Africa and Middle East represented 10% of quarterly sales and were 29% less than in the 2nd quarter of the previous financial year, but 23% more than in the Q1 of current financial year. Regaining previous sales level in Africa countries is one of challenges for next periods. Sales in the North and Latin America formed 44% of total sales.
2014/15 financial year’s 6 month unaudited consolidated net turnover was 6.85 EUR, which represented 10% increase comparing with the revenues generated in the respective period of the previous financial year.
SAF Tehnika’s the consolidated non-audited net result for the second quarter of 2014/15 financial year was loss 96.7 thousand EUR, being by 261 thousand EUR better result than for the quarter year before.
The consolidated non-audited net result of the 6 months of 2014/15 financial year was profit 188 thousand EUR which is achievement comparing with 227 thousand consolidated loss the Group ended 6 months period of previous financial year 2013/2014.
SAF Tehnika net cash flow for the 6 month period of the financial year was positive – 966 thousand EUR.
In 2015 there are no changes in the SAF Tehnika’s main focus on developing excellent quality microwave data transmission equipment with competitive price and functionality balance, besides the company is researching new niches to explore its microwave competence. Sales resources will be targeted to regions with highest potential. The Group is financially stable. The goal is to regain sales levels which ensures positive net result in a long-term. Due to intense competitive pressure the Board of the SAF Tehnika cannot provide certain prognosis for sales figures and operational results.
| Profit/Loss Statement for 6 months period | 31.12.2014 | 31.12.2013 |
| EUR | EUR | |
| Net sales | 6 847 631 | 6 253 530 |
| Other operating income | 116 729 | 11 259 |
| Total income | 6 964 360 | 6 264 789 |
| Direct cost of goods sold or services rendered | -4 073 035 | -3 528 798 |
| Marketing, advertising and public relations expenses | -223 006 | -267 837 |
| Bad receivables | -55 203 | -26 157 |
| Operating expenses | -491 236 | -607 393 |
| Salaries and social expenses | -1 609 533 | -1 576 101 |
| Bonuses and social expenses | -124 721 | -94 146 |
| Depreciation expense | -180 258 | -208 316 |
| Other expenses | -19 130 | -54 583 |
| Operating expenses | -6 776 122 | -6 363 329 |
| EBIT | 188 238 | -98 540 |
| Financial income (except ForEx rate difference) | 560 | 7 948 |
| Foreign exchange +gain/(loss) | 238 641 | -128 353 |
| Financial items | 239 201 | -120 405 |
| Share of profit/(loss) of equity-accounted investees | -1 016 | -8 975 |
| EBT | 426 423 | -227 920 |
| Corporate income tax | -238 069 | 0 |
| Profit after taxes | 188 354 | -227 920 |
| Net profit | 188 354 | -227 920 |
| Consolidated statement of Financial position | 31.12.2014 | 31.12.2013 |
| CURRENT ASSETS | EUR | EUR |
| Cash and bank | 5 078 671 | 2 398 886 |
| Short-term investments | 0 | 582 537 |
| Customer receivables | ||
| Accounts receivable | 2 238 311 | 2 554 575 |
| Due from joint venture | 12 959 | 45 829 |
| Allowance for uncollectible receivables | -424 490 | -532 746 |
| Total | 1 826 780 | 2 067 658 |
| Other receivables | ||
| Other current receivables | 114 889 | 3 248 |
| Short-term loans | 0 | 260 000 |
| Total | 114 889 | 263 248 |
| Prepaid expenses | ||
| Prepaid taxes | 92 587 | 100 852 |
| Other prepaid expenses | 106 930 | 113 827 |
| Total | 199 517 | 214 679 |
| Inventories | ||
| Raw materials | 1 395 843 | 1 163 317 |
| Work-in-progress | 1 882 278 | 1 707 002 |
| Finished goods | 1 688 386 | 1 655 671 |
| Prepayments to suppliers | 53 025 | 99 611 |
| Total | 5 019 532 | 4 625 601 |
| TOTAL CURRENT ASSETS | 12 239 389 | 10 152 609 |
| NON-CURRENT ASSETS | ||
| Long-term financial assets | ||
| Equity-accounted investments | 8 806 | 24 315 |
| Investments in other companies | 1 188 | 1 188 |
| Long-term receivables | 28 938 | 0 |
| Deffered income tax | 98 683 | 123 194 |
| Total | 137 615 | 148 697 |
| NON-CURRENT physical assets | ||
| Plant and equipment | 3 323 570 | 3 270 128 |
| Other equipment and fixtures | 1 838 667 | 1 868 658 |
| Accumulated depreciation | -4 641 862 | -4 536 030 |
| Other long-term assets | 7 593 | 184 |
| Total | 527 968 | 602 940 |
| Intagible assets | ||
| Purchased licenses, trademarks etc. | 200 243 | 202 369 |
| Other long-term intagible assets | 500 | 28 696 |
| Total | 200 743 | 231 065 |
| TOTAL NON-CURRENT ASSETS | 866 326 | 982 702 |
| TOTAL ASSETS | 13 105 715 | 11 135 311 |
| LIABILITIES AND OWNERS' EQUITY | 31.12.2014 | 31.12.2013 |
| CURRENT LIABILITIES | EUR | EUR |
| Debt obligations | ||
| Short-term loans from financial institutons | 4 547 | 12 605 |
| Customer prepayments for goods and services | 282 866 | 74 385 |
| Accounts payable | 798 743 | 774 899 |
| Tax liabilities | 294 071 | 64 201 |
| Salary-related accrued expenses | 247 551 | 200 487 |
| Debt to shareholders due to denomination of shares from LVL to EUR | 59 403 | 0 |
| Provisions for guarantees | 14 643 | 38 233 |
| Deffered income | 1 073 506 | 0 |
| Prepaid revenue | 0 | 1 396 |
| TOTAL CURRENT LIABILITIES | 2 775 330 | 1 166 206 |
| OWNERS' EQUITY | ||
| Share capital | 4 158 252 | 4 226 185 |
| Paid in capital over par | 2 851 725 | 2 851 725 |
| Other reserves | 8 530 | 0 |
| Retained earnings | 3 133 841 | 3 125 600 |
| Net profit for the financial year | 188 354 | -227 920 |
| Currency translation reserve | -10 317 | -6 485 |
| TOTAL OWNERS' EQUITY | 10 330 385 | 9 969 105 |
| TOTAL LIABILITIES AND OWNERS' EQUITY | 13 105 715 | 11 135 311 |
About SAF Tehnika.
„SAF Tehnika” JSC is an ISO certified wireless data transmission equipment manufacturer. The company's products are produced in Latvia, Europe and sold in over 130 countries worldwide. „SAF Tehnika” has been listed on NASDAQ OMX Riga since 2004. SAF Tehnika wholly owns subsidiary “SAF North America” LLC and holds 50% of a joint-venture company “SAF Services” LLC. Both of the mentioned companies are operating from Denver, CO, USA serving North American market.
Additional information:
Aira Loite
COO, Member of the Board
+371 67 046 833
Aira.Loite@saftehnika.com
