The SAF Tehnika consolidated non-audited net sales for the fourth quarter of financial year 2008/09 were 1.96 million LVL (2.78 million EUR), representing 67% of the fourth quarter of the previous financial year.

The Group’s consolidated non-audited net sales for the 12 months of the financial year 2008/09 were 8.81 million LVL (12.53 million EUR) representing year-on-year revenue decrease by 17%. The SAF Tehnika products were sold in 79 countries during financial year 2008/2009. 11 of them were new markets.

The consolidated net loss of the Group for the fourth quarter of financial year 2008/09 was 325 thousand LVL (463 thousand EUR).

The consolidated net loss of the Group for the financial year 2008/09 was 1.12 million LVL (1.59 million EUR). The net loss mainly reflects lower sales and falling margins due to a lack of funding for investments for SAF Tehnika’s clients and increasing competition. The loss was notably impacted by allowances recorded for bad and doubtful trade receivables amounting to 245 thousand LVL (348 thousand EUR). This was due to information received about significant liquidity problems of the company’s clients in Russia (sales were originally made during the second half of 2008). An extraordinary item relating to the divestment of SAF Tehnika Sweden amounting to 249 thousand LVL (354 thousand EUR) was a further contributor.

SAF Tehnika continues to roll out new products from the CFIP family to satisfy customer needs for higher capacity products and recover reducing sales for CFM products. A solid financial condition (net cash rather than net debt) allows the Company to maintain general operations at their previous level and increase the sales team’s local presence in all regions.

The attachment contains JSC SAF Tehnika Consolidated Interim Report for Q4 and 12 months of financial year 2008/2009 (1st July 2008 - 31st March 2009).

Additional information:
Aira Loite
CFO
+371 67046833
Aira.loite@saftehnika.com