The Company’s non-audited net sales for the first quarter of financial year 2011/12 were 2.89 million LVL (4.12 million EUR), representing 92% of the first quarter of the previous financial year. Compared to previous reporting quarter (Q4 FY 2010/11) which was the weakest in previous financial year this quarter shows recovering growth of 45% percent.

Sales in Americas slightly more than doubled amounting to 1.33 million LVL (1.9 million EUR) compared to previous financial year’s the first quarter being the largest part of the turnover. Sales in Europe and CIS region decreased by 25% comparing with the 1st quarter of the previous financial year and formed 23% of the quarterly sales. The largest fall in the quarterly sales comparing year-to-year was from sales in Asia Pacific, Middle East and Africa region where sales dropped by 46% or by 753 thousand LVL (1.07 million EUR). Company is looking for the most appropriate sales strategies for particular countries in order to regain   previous sales levels.
The net profit of SAF Tehnika for the first quarter of financial year 2011/12 was 477 thousand LVL (679 thousand EUR). The positive material impact on net result were from provision reduction for doubtful debtors as substantial part from old overdue debt was recovered and gains from foreign exchange rate changes as US dollar rate showed upward trend.

The demand for wireless transmission equipment, which is SAF Tehnika’s core product, is expected to be high over the coming years due to increasing usage of mobile devices worldwide. As the growing interest is noted for license-free 17 and 24 GHz frequency range, branded in SAF product portfolio as FreeMile equipment, the Company’s plans significantly improve distribution mechanism to make these products more available to customers.

SAF Tehnika will proceed with research and development of next generation wireless data transmission devices in order to meet evolving customer demand on high capacity equipment with ever better network management system. The Company will continue to consider different options for strengthening local presence in target markets. A subsidiary in North America launched in October – SAF North America is just another step in the Company’s geographical expansion after the announcement of SAF Middle East foundation.

The Company is financially stable, although due uncertainty in the global telecommunication market the Board of the Company cannot provide certain prognosis for sales figures despite positive results of the reporting quarter.

Additional_information:
Aira Loite
CFO
Phone: +371 67046833
Mailto: Aira Loite