In the first quarter of the financial year 2023/ 2024, the Group's unaudited consolidated net turnover was 5.3 million which is a decline of 53% compared to the first quarter of the financial year 2022/2023. The Group closed the 1st quarter of the financial year 2023/2024 with loss of EUR 1.47 million (unaudited).
Riga, 2023-11-08 16:54 CET -- The turnover of the North and Latin America region amounted to 58%, or EUR 3.15 million. Compared to the same quarter of the previous financial year, the turnover decreased by 60%.
The European region gave 28% of the turnover, or EUR 2.25 million, which is 27% less than in the Q1 of the previous financial year.
The decline in revenue for the quarter in all regions is due to the implementation of large-scale projects and sales volume in the first quarter of the previous financial year, when one of the highest quarterly turnovers in history was achieved.
The Group's expenditures did not exceed the planned volumes and were generally lower than in the same period a year earlier. The Group continues to invest in the development of new products and product modifications.
The Group closed the 1st quarter of the financial year 2023/2024 with loss of EUR 1.47 million (unaudited). The result of Q1 of the previous year was profit of EUR 2.56 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 during the previous periods to be able to fulfil most of the orders within normal lead times. Following the precautionary principle, the Group does not change its policy on slow-moving stocks. Total provisions for slow-moving stocks in the quarter (compared to the volume at the end of the previous financial year) increased by EUR 1.4 million and account for EUR 4.7 million.
In the 1st quarter of the financial year 2023/2024, EUR 698 thousand were invested in the acquisition of fixed assets.
To ensure liquidity, the 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 1.9 million.
Despite the modernization of the telecommunications market in the direction of fiber-optic communications, there is still a market demand for radio systems that provide enhanced data rates. Consequently, 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 the turnover level, which ensures a positive net result in the long run. The Board of SAF Tehnika remains cautious and refrains from providing specific sales and performance forecasts.
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
