Audited statements and Corporate Governance report of „SAF Tehnika” for financial year 2017/ 2018
Net turnover of the “SAF Tehnika” Group in the 2017/ 2018 financial year was 13.41 million euros, which is by 3.63 million euros, or 21.3% less than in the previous financial year 2016/2017. The net turnover of the Parent company was 11.17 million euros in FY 2017/2018, which is 3.46 million euros less than last FY 2016/2017. The Board of the Parent company proposes to cover the loss from undistributed profits of previous years.
“SAF Tehnika” publishes its audited consolidated and non-consolidated financial statements for financial year 2017/2018 (from July 1, 2017- June 30, 2018) according to Section 56th, 5th paragraph of „Law on the Financial Instruments Market”
Net turnover of the “SAF Tehnika” Group which consists of SAF Tehnika AS (hereinafter – the Parent) operating from Riga, Latvia, wholly owned subsidiaries “SAF North America LLC” and “SAF Services LLC”, in the 2016/ 2017 financial year was EUR 13.41 million, which is by 3.63 million euros or 21.3% less than in the previous financial year 2016/2017.
Fluctuations in turnover for all regions are affected by variable proportion of projects, replacement of equipment generations, and product audits, especially in the segments of standard equipment.
In the reporting year, in order to minimize fluctuations in turnover, the Group continued its effort to research and identify by developing and improving the niche product offerings, increasingly focusing on the diversification of its product portfolio. Therefore, prototypes for the next generation equipment have been made and will be marketed during the next financial year. The technology transition process is gradual and will happen over several years.
Exports made 98.85% of the turnover and amounted to EUR 13.41 million. During the reporting year, the Group exported its products to 76 countries worldwide.
During the reporting year, the Group invested EUR 344 thousand into IT infrastructure, production and research equipment, purchase of software and licenses, as well as product certification.
The Group's closed the financial year 2017/2018 with loss of 219 thousand euros.
The Parent company’s financial result for FY 2016/2017 was a loss 199 thousand EUR. A significant difference is related to the successful implementation of customer-tailored niche projects in the past fiscal year, as well as to the stages of the product life cycle, investments in the development of new products and modifications for existing products.
The Board of the Parent company proposes to cover the loss from undistributed profits of previous years.
Attachments: SAF Tehnika 2017_2018_ENG_FINAL.pdf
Audited Consolidated financial statements and Separate financial statements for “SAF Tehnika” for the year ended 30 June 2018
Corporate Governance report for financial year 2017/2018
CFO, Member of the Board
+371 67 046 833
For Q4 of the FY 2017/18, the Group's unaudited consolidated net turnover was EUR 3 million, which is by 40% lower than in Q4 of the previous financial year, when the highest sales volume over the past 10 years had been reached. The sales turnover of the quarter is by 3% higher than in the previous - third quarter. The Group finished the closing quarter of the financial year with a profit of EUR 6 thousand (unaudited). The unaudited consolidated result for the FY 2017/18 is the turnover of EUR 13.04 million, but the unaudited result is a loss of EUR 214 thousand (EUR 170 thousand of it is fluctuations in EUR/USD exchange rate).
The major part of the quarter turnover is made by sales in North/Latin Americas - 58% or EUR 1.75 million of the quarterly turnover. The result is by 50% lower than in the respective quarter of the previous financial year due to the implementation of a specific project in the specified region last year.
The European and CIS region gave 32% or EUR 954 thousand of the turnover in quarter four. The turnover in the region is equivalent to the average turnover in the region.
The Group’s unaudited consolidated turnover for the financial year 2016/17 was EUR 13.4 million, which is a 21% decrease compared to revenue for the previous financial year. Fluctuations in turnover depend on the growing percentage of projects, replacement of equipment generations and product portfolio auditing, especially in segments of standard equipment.
The unaudited consolidated result for the FY 2017/18 is the loss of EUR 214 thousand, compared to the Group’s result of the previous financial year when the profit was EUR 1.7 million.
The Group’s costs did not exceed the planned levels, but were generally higher than during the same period a year ago due to investments in the development of new products that are expected to enter the market in the coming financial year.
In period from April to June, SAF Tehnika participated in several important industry-related exhibitions in North America and Europe. Including NAB Show, this is the largest trade show for U.S. broadcasters, and Tradetech exhibition in the Netherlands, which is dedicated to financial solutions.
During the reporting period Aranet product line was launched in U.S., as well as new sensors were presented. To promote Aranet an information campaign on carbon dioxide gas hazards at schools was launched. The prepared animation can be seen at Aranet website or YouTube channel.
SAF Tehnika is a company with the long-term competence in development and production of microwave radios. SAF Tehnika will proceed with its work on new high-quality products for the microwave data transmission market, providing not only standardized solutions, but also product modifications in order to meet customers’ special needs, as well as searching innovative ideas for applying microwave data transmission. The Group is financially stable. The goal of the Company is to stabilize sales levels to ensure a positive net result in the long term. The Board of SAF Tehnika maintains cautious optimism but cannot provide certain prognosis for sales figures and operational results.
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 and “SAF Services” LLC. Both of the mentioned companies are operating from Denver, CO, USA serving North American market.
Attachments: 12M FY17_18_SAF_results ENG.pdf
CFO, Member of the Board
+371 67 046 833