In the first quarter of the financial year 2022/ 2023, the Group’s unaudited consolidated net turnover was 11.4 million euros which is an increase of 46 % compared to the first quarter of the financial year 2021/2022. The Group ended the first quarter of the financial year 2022/2023 with a profit of EUR 2.56 million (unaudited).

The turnover of the region of the countries of North and Latin America amounted to 69%, or EUR 8.8 million. Compared to the same quarter turnover last financial year, the turnover increased by 58%.

The turnover of the region of Europe and the CIS countries is 18%, or EUR 2 million, which is 1% less than in the 1st quarter of the previous financial year. Compared to the corresponding quarter of the last financial year, the turnover of Asia, Africa and the Middle East region doubled and accounts for 14% of the total quarterly turnover (or EUR 1.6 million).

The Group’s costs did not exceed the planned levels, and The Group continues to invest in the development of new products and product modifications.

The Group completed the 1st quarter of the financial year 2022/2023 with a profit of EUR 2.56 million (unaudited). The result of the first quarter of the previous year was profit of EUR 1.52 million.

The Group’s net cash balance at the end of the period was EUR 3.12 million. To ensure liquidity, in the 1st quarter of the financial year 2022/2023, the parent company entered into a Credit Line Agreement with Luminor Bank AS for the total amount of EUR 4.95 million. The credit line was not used in the reporting quarter.

Since the outbreak of hostilities in Ukraine by Russia, the overall uncertainty of the business environment has increased. Although its direct impact on the Group’s activities is relatively limited, the Group carefully assesses possible cost growth forecasts and potential risks. The Group’s operations are affected by the global shortage of various electronic components. Supply chains remain difficult – alternative transportation options increase delivery times and costs. The company regularly reviews procurement volumes and deadlines, and continues to accumulate inventory in order to be able to fulfil most of the orders within normal lead times. This applies to all SAF product families – microwave links, Spectrum Compact and Aranet.

The Group continues to explore market demand and problematic issues in order to be able to provide necessary product modifications, as well as continues investments in product development. The goal of the Company is to stabilize sales levels to ensure a positive net result in the long term.

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 Riga since 2004. SAF Tehnika wholly owns subsidiary “SAF North America” LLC. SAF North America operates from Denver, CO, USA serving North American market.

         Additional information:
         Zane Jozepa
         CFO, Member of the Board
         zane.jozepa@saftehnika.com
         www.saftehnika.com