In the fourth quarter of the financial year 2022/ 2023, the Group’s unaudited consolidated net turnover was 8.7 million euros, which is by 3% more compared to the fourth quarter of the financial year 2021/2022. The Group ended the fourth quarter of the financial year 2022/2023 with a profit of EUR 805 thousand (unaudited). The consolidated unaudited result of the financial year 2022/2023 is profit EUR 3.39 million.

The turnover of the region of the countries of North and Latin America amounted to 71%, or EUR 6.1 million. Compared to the same quarterly turnover last financial year, the turnover has increased by 14%.

The turnover of the European region is 22%, or EUR 2.2 million, which is 3% less than in the 4th 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 two times less and accounts for 3% of the total quarterly turnover (or EUR 283 thousand). Total turnover fluctuations over the period are the result of projects of different scales.

In the reporting quarter, the Group’s products were sold in 67 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 12 months of the financial year 2022/2023 was EUR 37.26 million, which is a 10% increase compared to the volume of revenues in the last financial year.

The consolidated unaudited result of the financial year 2022/2023 is profit EUR 3.39 million. The Group’s profit of the previous financial year 2021/2022 was EUR 6.09 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 and the Group’s policy on slow-moving stocks, total savings on slow-moving inventory (compared to the volume at the end of the fourth quarter of the previous financial year) increased by EUR 2.2 million.

In the 4th quarter EUR 897 thousand were invested in the acquisition of fixed assets. ( a total of EUR 1.89 million during the financial year).

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 1.2 million.

Although the direct impact on the Group’s activities has been relatively limited after the outbreak of hostilities in Ukraine by Russia, the general uncertainty in the business environment remains The Group continues to monitor forecasts of possible cost increases and assess 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