SAF Announces 2007 Results

DJ SAF Announces 2007 Results

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- Actual sales revenues of EUR 13.2 million (4Q 07: EUR 3.9. million) 
- Actual net profit of EUR 3.0 million (4Q 07: EUR 1.2 million) 
- Three international contracts concluded via direct business provide a solid 
basis for further growth 
 
Tägerwilen/Switzerland, March 12, 2008. SAF AG, which is listed in the Prime 
Standard of the Frankfurt Stock Exchange (ISIN CH0024848738) reports the 
following final results for the total fiscal year 2007: sales revenues of EUR 
13.2 million (4Q 07: EUR 3.9 million) and a net profit of EUR 3.0 million 
(Q4/07: EUR 1.2 million). SAF´s 2007 business results were in line with the 
released guidance (total annual sales revenues: EUR 13.6 million to EUR 15.0 
million; net profit: EUR 2.7 million to EUR 3.9 million). 
 
During the reporting period, total sales revenues declined slightly by 2.6 
percent vs. last year with its 84 percent explosion in sales revenues. This 
decline in sales revenues was caused by lower than planned license sales via the 
OEM partner as well as by a time lag and shift in realized sales from the direct 
business into the current fiscal year. During Q4/07, sales of software licenses 
via the OEM partner were in line with the latest expectations and resulted in a 
slight increase of 0.9 percent to EUR 3.9 million vs. the same period last year. 
 
 
Maintenance revenues increased again remarkably during the reporting period by 
70.8 percent from EUR 2.8 million to EUR 4.8 million (Q4/07: EUR 1.3 million). 
Maintenance revenues grew proportionately with software license revenues and 
thus track the latter with a time lag. 
 
Additional employees were hired in order to support the continued growth of the 
Company. In doing so, the Company closely monitored the cost developments. 
Operating costs, which were primarily driven by personnel costs, increased by 
19.1 percent vs. last year from EUR 9.4 million to EUR 11.1 million (Q4/07: EUR 
3.0 million). 
 
This led to a reduction in operating income (EBIT) of 48.4 percent from EUR 5.0 
million in 2006 to EUR 2.6 million in 2007 (4Q 07: EUR 1.2 million). An EBIT 
margin of 19.4 percent (previous year: 36.6 %; Q4/07: 30.7%) was reported. 
 
Net profit followed the development of EBIT. Considering the current favorable 
corporate taxation situation at the location of the home office of the Parent 
Company, an overall effective rate of taxation of 13.9% was achieved. Net profit 
for the total fiscal year amounted to EUR 3.0 million (Q4/07: 1.2 million) vs. a 
net profit of EUR 4.6 million in the previous year. The net profit margin for 
the 2007 fiscal year equaled 22.5 percent (Q4/07: 32.0%). 
 
"Our 2007 business results were significantly below our expectations. The 
pre-requisites for continued growth have not only been fulfilled by the 
contracts concluded at the turn of the year," emphasized SAF AG CEO, Dr. Andreas 
von Beringe. "Our starting point for continued growth is very promising, both in 
our direct business as well as in our partner business," added von Beringe. 
 
 
 
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. 90 people. 
Consolidated sales revenues for fiscal year 2006, were approx. 13.6 million EUR 
with consolidated profit of 4.6 million EUR according to IFRS statements. 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., Grapevine, Texas 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 2006. SAF does not plan to 
update the forward looking statements, nor does it assume the obligation to do 
so. 
 
 
end of announcement                               euro adhoc 
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(END) Dow Jones Newswires

March 12, 2008 02:29 ET (06:29 GMT)