EANS-News: SAF AG
SAF generates consolidated net profit of EUR 1.4 million in
the fiscal year 2010
Weak licensing business slows SAFs growth
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annual result/annual report
Subtitle: Weak licensing business slows SAFs growth
Tägerwilen (euro adhoc) - - Consolidated net profit increases from EUR 0.7 million to EUR 1.4 million - At EUR 4.8 million, licensing revenue remains below expectations - Services business records 23.7 percent growth in the fiscal year 2010 - Consolidated revenues decrease 5.9 percent year on year to EUR 15.6 million
Tägerwilen/Switzerland, March 15, 2011. SAF AG, which is listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN CH0024848738), announced consolidated revenues of EUR 15.6 million in the fiscal year 2010, representing a 5.9 percent decline in revenues year on year (FY/09: EUR 16.6 million). In contrast, consolidated net profit doubled from EUR 0.7 million to EUR 1.4 million. The strong growth in consolidated net profit was due primarily to the absence of one-off expenses incurred in the course of SAP AG's public takeover offer in 2009 which reduced the results of the fiscal year 2009. Accordingly, operating profit also rose from EUR 0.6 million in the previous year to 2.0 million in 2010.
After starting out the fiscal year 2010 with the successful signing of a licensing agreement with Germany's leading furniture discounter ROLLER and the license expansion of one of the leading US supermarket operators to include all of the group´s supermarket chains, the licensing business´ weak performance in the second half of 2010 dampened SAF's growth. At EUR 4.8 million for the year, SAF's licensing business lagged significantly behind the previous year´s level (FY/09: EUR 7.0 million). Although OEM partner SAP made a substantial contribution to licensing revenues with nine licensing agreements, it was not as successful as it had been during the fiscal year 2009. The decline in the licensing business was due primarily to a significantly weaker fourth quarter, in which an expected major U.S. licensing deal fell through.
The maintenance business continued to grow in 2010, increasing 10.9 percent to EUR 8.9 million. The services business also showed positive development, recording a 23.7 percent increase in revenues from EUR 1.6 million in 2009 to EUR 1.9 million in 2010. The growth in revenues was fueled primarily by the closer alliance between SAF and SAP. For example, SAF was able to perform proof of concept analyses to pinpoint the financial added value of SAP´s F&R solution, thus convincing customers to purchase the solution. Additional development orders for the OEM partner and consulting projects for SAP F&R customers also made a substantial contribution to driving strong services revenues.
"The fiscal year 2010 was marked by many changes including the replacement of management, a closer cooperation with majority shareholder SAP and a realignment of our strategy," remarked Udo Meyzis, CEO of SAF AG with regard to the past fiscal year. "We have thus laid the groundwork for SAF's continued success and can fully exploit the synergies resulting from our intensified partnership with SAF going forward."
Thanks to future investments in enhanced software solutions for automated replenishment and the support of an established parent company, SAF is ideally suited to leverage innovative products and increase its share of the growth market for IT-driven replenishment management and to provide optimal support to customers in mastering the challenges they face with respect to the ordering process.
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About SAF AG SAF Simulation, Analysis and Forecasting AG specializes in the development of automated ordering and forecasting software for retailers and industrial manufacturers. SAF deploys the demand chain management approach, which controls replenishment planning based on consumer demand patterns. SAF software assists users to realize substantial cost savings and optimizes general logistics conditions through its simulation capabilities. As a result, significant competitive advantages are achieved along the entire value chain: lower inventories, improved product availability, and last, but not least, a higher level of customer satisfaction.
SAF AG was established in 1996 by Dr. Andreas von Beringe and Prof. Dr. Gerhard Arminger. SAF shares are listed at the official market (Prime Standard) at the Frankfurt Stock Exchange (FWB). Today, the company employs approx. 100 people. Consolidated sales revenues for fiscal year 2010, according to IFRS statements, were EUR 15.6 million with consolidated profit of EUR 1.4 million. SAP currently holds approx. 70 percent of SAF´s shares. SAF´s products are distributed in many European countries as well as in the United States. The company is headquartered in Tägerwilen, Switzerland. SAF also has a subsidiary in the United States: SAF Simulation, Analysis and Forecasting U.S.A., Inc., Irving and in Slovakia, Bratislava: SAF Simulation, Analysis and Forecasting Slovakia s.r.o. with the focus on Nearshore-Development.
Forward Looking Statements and Estimates This information contains forward looking statements based on assumptions and estimates of SAF's Management Board. Although we assume the expectations in these forward looking statements are realistic, we cannot guarantee they will prove to be correct. The assumptions may harbor risks and uncertainties that may cause the actual figures to differ considerably from the forward looking statements. Factors that may cause such discrepancies include, among other things, risks that are mentioned in the annual report 2010. SAF does not plan to update the forward looking statements, nor does it assume the obligation to do so.
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Contact:
Mareike Poit
Tel.: +41 (0) 71666 7955
e-mail: mareike.poit@saf-ag.com
Branche: Software
ISIN: CH0024848738
WKN: A0JD78
Index: Prime All Share, Technology All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade