SAF announces a new license agreement in direct sales even in the second quarter 2010
SAF well positioned for second half of 2010 fiscal year
- Revenues of EUR 4.4 million (Q2/09: EUR 4.5 million) almost at level of previous year quarter
- Direct sales client extends license to cover all of its US supermarkets
- Operative costs almost at same level
- Net profit stable at EUR 1.0 million on quarterly basis
SAF AG, which is listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN CH0024848738), announces even in the second quarter of 2010 a success in direct sales business and is well prepared for the important second quarter of 2010 fiscal year. At EUR 4.4 million, the company's revenues nearly reached that generated in the successful second quarter of 2009. Revenues fell slightly while net profit remained the same at EUR 1.0 million, resulting in a 0.5 percentage point increase in net profit margin to reach 22.4 percent (H1/10: 14.1 percent).
The positive business development was due primarily to the expansion of a direct business relationship with one of the leading retail supermarket chains in the US. An additional contract was concluded by our OEM partner SAP and led to EUR 1.7 million (Q2/09: EUR 1.8 million) license revenues in total. Along with the positive performance in the maintenance business of EUR 2.2 million (Q2/09: EUR 2.3 million), the services department also contributed revenues of EUR 0.5 million (Q2/09: EUR 0.4 million) to total revenues.
"Along with additional development work for SAP based on the OEM contract, SAF provides for example SAP's potential new customers with individual analyses which can highly precisely determine the extent of optimization that can be achieved by implementing SAP's Forecasting & Replenishment Engine" evaluates Udo Meyzis, CEO at SAF AG, the cooperation. Additionally, as part of the SAP trade conference in Latin America the Company received the opportunity to establish jointly new contacts with major retail companies and thus with potential new customers.
SAF's direct sales business celebrated an important success in North America when a major existing customer extended its license for SAF's forecasting and ordering software to cover all of its supermarkets in the US. "The extension of the software license demonstrates not only SAF's strong positioning in the North American growth market, but also shows that SAF's strategy of developing customer relationships in a stepbystep process has been successful" explains Dr. Andreas von Beringe, President of the Board of Directors' and founder of SAF AG, the developments and adds, "Our aim is to gradually globalize our customers' licenses." Many companies initially implement SAF software in one specific market region or one selected subsidiary. Encouraged by the substantial savings and increases in efficiency they experience, they then extend the license to cover other regions or subsidiaries. Other clients choose to first optimize their stores using SAF SuperStore, and then, in a second step, to streamline their warehouse management processes with SAF SuperWarehouse. In this way, SAF gradually provides retailers with advantages in competing for customers and supports them in saving costs.
Having generated EUR 8.1 million (H1/09: EUR 9.0 million) in revenues during the first half of the year, SAF is well positioned for further growth throughout the 2010 fiscal year. Along with opportunities in the direct and OEM businesses, joint initiatives with SAP will increasingly contribute to revenues over the medium term.
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.
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 onetime 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.