JSC "SAF Tehnika" non-audited net sales for the second quarter of financial year 2009/10 were 2 066 500 LVL (2 940 365 EUR), representing 90% of the second quarter of the previous financial year. Sales in Africa represented the largest part of 2^nd quarter’s turnover (47%). Sales there rose by 78% or 0.43 million LVL (0.61 million EUR) compared with the same quarter of last financial year. The first turn-key projects were successfully completed in this region. The largest negative revenue impact was from sales in the CIS – a decrease of 98% or by 0.75 million LVL (1.07 million EUR). This region could become more active in the spring of 2010.

The Company’s non-audited net sales for the 6 months of financial year 2009/10 were 3 716 966 LVL (5 288 766 EUR) representing a year-on-year revenue decrease of 20%.

The net loss of the Company for the second quarter of financial year 2009/10 was 181 388 LVL (258 090 EUR). The net loss of the Company for the 6 months of financial year 2009/10 was 365 022 LVL (519 380 EUR). The net loss mainly reflects lower sales and falling margins due to increasing competition and a lack of funding for investments for clients of JSC “SAF Tehnika”.

Even taking into account the existing results, the company continues to be financially stable. The management is shifting the company’s strategy towards delivering more specialized niche products and looking for cooperation partners and new collaboration forms with vendors who could supplement the current offering to the company’s clients. The focus is the full introduction of an extensive CFIP product line and development of customer tailored solutions. The main goal is to make the company’s business profitable again.

 

Aira Loite

CFO

+371 67 046 833