With a solid project pipeline, SAF well positioned for second half of 2011 fiscal year
Maintenance and service business continues strong growth
- Service business records 50.9 percent growth to EUR 0.7 million in Q2/11
Total revenue in second quarter EUR 3.7 million.
- At EUR 0.7 million, licensing revenue below expectations
The Prime Standard-listed SAF AG (ISIN CH0024848738) posted total revenues of EUR 3.7 million in the second quarter of 2011 (Q2/10: EUR 4.4 million). With revenues at EUR 0.7 million, the licensing business was down by 57.5 percent compared with the second quarter of 2010 (Q2/11: EUR 1.7 million). The maintenance and service business continued its encouraging growth trend throughout the second quarter. The maintenance business grew quarter-on-quarter by 3.0 percent to EUR 2.3 million. The service business developed excellently, growing by 50.9 percent to EUR 0.7 million (Q2/10: EUR 0.5 million). In addition to the solid service business with the OEM partner SAP, SAF's direct consulting, analysis and implementation projects also contributed to this excellent performance.
The decline in revenues only was partially offset by a 3.9 percent year-on-year reduction in operating expenses to EUR 3.5 million in the second quarter. Consolidated net profit thus fell to EUR 0.4 million (Q2/10: EUR 1.0 million). SAF recorded a 15.8 percent decline in revenue to EUR 6.8 million for the first half of 2011, breaking even with a consolidated net profit of EUR 0.0 million.
SAF entered into a strategic partnership with the Barcelona-based solutions provider Supply Nexus during the second quarter, enabling it to expand its distribution and partnership network and to position itself for success on the Iberian Peninsula. Projects involving Coop and the Dutch supermarket chain Jan Linders are progressing as planned.
"SAF's solutions provide retailers with significant verifiable cost reductions and decisive competitive advantages along the entire value chain," said Udo Meyzis, CEO of SAF AG. "Thanks to future investments in enhanced software solutions for automated replenishment and the synergies achieved through the close partnership with SAP, SAF is in an optimal position to assist its customers in mastering the challenges of their ordering process. SAF's solid project pipeline lays the foundation for growth in licensing revenue in the coming quarters."