In the third quarter of the financial year 2022/ 2023, the Group’s unaudited consolidated net turnover was 6.6 million euros, which is 23% less compared to the third quarter of the financial year 2021/2022 with a loss of EUR 974 thousand (unaudited). The consolidated unaudited result of 9 months of the financial year 2022/2023 is profit EUR 2.59 million.

The turnover of the region of the countries of North and Latin America amounted to 71%, or EUR 4.7 million. Compared to the same quarterly turnover last financial year, the turnover has increased by 11%.

The turnover of the European region is 24%, or EUR 1.6 million, which is 50% less than in the 3rd 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 is three times less and accounts for 5% of the total quarterly turnover (or EUR 351 thousand). Fluctuations in quarterly turnover are explained by the implementation of some more large-scale projects.

In the reporting quarter, the Group’s products were sold in 62 countries.

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’s unaudited consolidated net turnover for 9 months of the financial year 2022/2023 was EUR 28.59 million, which is a 12% increase compared to the volume of revenues in the last financial year.

The consolidated unaudited result of 9 months of the financial year 2022/2023 is profit EUR 2.59 million. The Group’s profit for the 9 months of the previous financial year 2021/2022 was EUR 5.14 million.

In the 3rd quarter EUR 301 thousand were invested in the acquisition of fixed assets.

To ensure liquidity, in August 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. At the end of the reporting period, the use of the credit line was EUR 2.4 million.

The Group’s operations were long affected by the global shortage of various electronic components. By regularly reviewing procurement volumes and deadlines, the company accumulated material reserves (inventories) to be able to fulfil most of the orders within normal lead times. Following the precautionary principle, the Group continues to maintain its current policy on slow-moving stocks. Total savings on slow-moving inventory (compared to the volume at the end of the third quarter of the previous financial year) increased by EUR 1.76 million.

Since the outbreak of hostilities in Ukraine by Russia, the overall business environment uncertainty continues. Although its direct impact on the Group’s activities is relatively limited, the Group continues to assess possible cost growth forecasts and potential risks. 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 subsidiaries “SAF North America” LLC, which operates from Denver, CO, USA and serves the North American market and “SAF Tehnika Asia PTE” LTD in Singapore.

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