EANS-News: SAF AG
SAF has started off fiscal year 2010 on solid footing
Tägerwilen (euro adhoc) -
Success in direct sales ROLLER counts on SAF RetailSuite Store
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quarterly report/Q1/2010
Subtitle: Success in direct sales ROLLER counts on SAF RetailSuite Store
- Following strong prior-year quarter revenues declined by 19.4 percent in Q1/10 - SAF wins ROLLER as direct customer - License revenues declined by 49.9 percent in Q1/10 - Maintenance revenues increased by 23.0 percent in Q1/10 - Earnings suffered under weaker license revenues
Tägerwilen/Switzerland, May 12, 2010. SAF AG, which is listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN CH0024848738), started solid into new fiscal year. After generating the second-highest revenues in Company history in the first quarter 2009, SAF recorded a 19.4 percent drop in revenues to EUR 3.6 million in the first three months of 2010. So, SAF´s start was slightly below expectations. Net profit also developed in line with revenues. Despite a modest rise in costs, net profit dropped from EUR 1.2 million to EUR 0.2 million. This triggered a decrease in the net profit margin from 26.0 percent to 4.1 percent. The operating profit (EBIT) also followed this trend. After reaching EUR 1.3 million in the first quarter of last year, it fell to EUR 0.2 million.
The drop in revenues and earnings is due primarily to a major direct sales agreement which SAF concluded with the American retail group Winn-Dixie at the beginning of last year. The volume of this contract, like the Winn-Dixie group itself, was larger than average and along with the other licensing agreements concluded, led to extraordinarily good revenues in the first quarter. By comparison, in the first quarter 2010 SAF recorded a 49.9 percent drop in licensing revenues to EUR 1.3 million. SAF concluded a total of four new licensing agreements, two from SAP and two from the direct business. SAF welcomed its newest German customer, ROLLER, a discount furniture retailer, which will use SAF RetailSuite Store to replenish its approximately 100 stores and subsidiary going forward. This partnership came about as the result of a pilot project which indicated that order time could be reduced by more than half through the use of SAF RetailSuite Store, allowing employees to devote more time to sales and service. Maintenance business once again proved to be a guarantor for sustained revenue growth. Revenues in the maintenance business rose by 23.0 percent to reach EUR 2.1 million in the first quarter 2010.
"After a modest start in the first quarter, we are expecting revenues to continue to develop positively over the course of the year" reports Dr. Andreas von Beringe, founder and President of the Board of Directors at SAF adding "In the US, we have successfully cultivated several promising relationships with potential new customers, primarily in the wholesale and the foodstuffs industries". SAF has also been able to make contact with leading retailers in South America, while within Europe, the markets in the United Kingdom and Eastern Europe are gaining in significance.
Since April 1, 2010, Udo Meyzis, who has risen through the ranks of SAF, has been serving as successor as head of the Company in the position of CEO. "Together with my colleagues from the Executive Management team Uwe Zachmann, responsible for product development as CTO, and Philipp Zielke, in charge as CFO, we are fully committed to keeping SAF on its course for growth," Meyzis takes a look at SAF´s future, while SAF as an independent company will continue operating in close cooperation with the majority shareholder SAP.
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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 2009, according to IFRS statements, were EUR 16.6 million with consolidated profit of EUR 0.7 million which were affected by one-time costs of EUR 2.8 million due to the takeover by SAP. 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 2009. SAF does not plan to update the forward looking statements, nor does it assume the obligation to do so.
end of announcement euro adhoc
Further inquiry note:
Astrid Strömer
+41 (0)71 666 79 48
astrid.stroemer@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