In the second quarter of the financial year 2023/2024, the Group’s unaudited consolidated net turnover was 8.9 million euros, which is by 15% less compared to the second quarter of the financial year 2022/2023. The Group closed the 2nd quarter of the financial year 2023/2024 with a profit of EUR 523 thousand (unaudited). The consolidated unaudited result of 6 months of the financial year 2023/2024 is a loss of EUR 950 thousand.

The turnover of the North and Latin America region amounted to 60%, or EUR 5.37 million. Compared to the same quarter of the previous financial year, the turnover decreased by 34%.

The European region gave 34% of the turnover, or EUR 3.1 million, which is 42% more than in the Q2 of the previous financial year. The turnover in Asia, Africa and the Middle East region increased compared to the corresponding quarter of the previous financial year, but accounts for 5% of the total quarterly turnover (or EUR 483 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 71 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 6 months of the financial year 2023/2024 was EUR 14.31 million, which is 35% less than the revenue volume in the last financial year.

The Group closed the 2nd quarter of the financial year 2023/2024 with a profit of EUR 523 thousand (unaudited). The consolidated unaudited result of 6 months of the financial year 2023/2024 is a loss of EUR 950 thousand. The Group’s profit for the 6 months of the previous financial year 2022/2023 was EUR 3.56 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 provisions for slow-moving stocks in the 6 months of the financial year (compared to the volume at the end of the previous financial year) increased by EUR 1.1 million and account for EUR 4.3 million

In the 2nd quarter EUR 308 thousand were invested in the acquisition of fixed assets.

Parent Company continues the 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 million.

Although hostilities in Ukraine do not have a direct impact on the Group’s activities, 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 provide material reserves in order to be able to execute most of the orders in short delivery terms. This applies to all SAF product families – microwave links, spectrum analyzers and the Internet of Things (IoT). 

the Group continues to actively explore the market and problematic issues in order to be able to offer the necessary product modifications and create prototypes for next generation technologies. At the same time, the Group also develops IoT segment solutions in business and consumer segments to diversify, to create higher added value for SAF Tehnika product offering, as well as to increase the Group’s revenue. 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