Riga, Latvia, 2013-02-06 15:20 CET (GLOBE NEWSWIRE) --
SAF Tehnika's (further Group) non-audited net sales for the second quarter of financial year 2012/13 were 2.69 million LVL (3.83 million EUR), increasing by almost 10% compared to the second quarter of the previous financial year at the same time posting an 40% increase from the previous reporting quarter of the current financial year (Q1 FY 2012/13). The financial results reflect Groups ability to maintain regular sales activities together with acquiring new mid-to-large size projects.
Asia, Middle East and Africa region continued to show improved results with revenue growing by 25% or 0.13 million LVL (0.2 million EUR) from the previous reporting quarter of the current financial year, meanwhile also showing a 21% year-to-year sales improvement. Consequently the regions strengthened its strategic importance by contributing 25% from the total turnover.
As the European, CIS region regained market activity the sales in the region grew by 60% against Q1 FY 2012/13 however still not reaching the previous average levels Group generated in the previous reporting quarters with year-to-year turnover decreasing by 19% or 0.21 million LVL (0.31 million EUR).
The Americas region which already previously proved to be a strategic region continued to grow both for CFIP Lumina product sales as well as further expanding FreeMile product line posting a combined growth of 36% or 0.3 million LVL (0.43 million EUR) compared to the previous reporting quarter of the current financial year. Consequently the region retained a 42% turnover share from the total group’s turnover of the reporting quarter.
The periods’ financial results were directly affected by an increase in operating costs. Due to change in government’s conditions for financing development projects for competence centers the Group decided to suspend the ongoing development projects in “LEO Petniecibas Centrs” and consequently will have to absorb additional development costs amounting to 72 thousand LVL (102 thousand EUR). Increased expense related to sales and marketing activities also affected the bottom line. Furthermore, the Group suffered from unfavorable USD to LVL, foreign exchange rates which made a negative impact on the reporting quarter’s profits.
The Group ended second quarter of 2012/13 financial year with a net loss of 170 thousand LVL (243 thousand EUR), which represents a decrease by 238 thousand LVL (339 thousand EUR) when compared to respective quarter of previous financial year where company posted profit.
The Group’s current main focus is to progress on the ongoing R&D projects of new generation product that will support both the functionality of currently existing products and will be possess additional advanced features. It is planned that the product will be introduced to the market at the beginning of summer 2013.
The Group plans to expand in managed services field and will sharpen its focus on niche markets and customers to ensure development and technical support resources are channeled to key areas.
Notwithstanding the financial results of the reporting period, the Group remains financially stable and confident to withstand periods of lower business activity. Due to intense competitive pressures and general decrease in spending of businesses consuming telecommunication equipment, the Board of the Group does not assume any specific predictions of sales and financial results of the next reporting periods.
Member of the board, COO
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Mailto: Aira Loite