SAF Tehnika Consolidated Interim Report for Q2 and 6 months of financial year 2014/15

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. The consolidated non-audited net result of the “SAF Tehnika” for the second quarter of 2014/15 financial year was loss 96.7 thousand EUR and for the 6 months of 2014/15 financial year - profit 188 thousand EUR.


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

 


Attachments

SAF Tehnika Consolid nonaudited Interim report for Q2 and 6M of FY14_15.pdf