SAF Tehnika preliminary unaudited consolidated year-end report 



Year-end report for FY 2003/2004

Date submitted: 26.07.2004

Currency: LVL

+----------+------+

|Revenues  |12.8 M|

|EBIT      |5.0 M |

|Net Profit|3.9 M |

+----------+------+







 *  SAF  Tehnika  increased revenues 2.6 times and net profit 4.8 times

during the financial year

* Passed ISO 9001 quality certification audit

* Became a members of ETSI

*  By  acquiring Viking Microwave business SAF Tehnika has considerably

improved its R&D capacity.

*  SAF  Tehnika  performed  a successful IPO with market capitalization

over 50M EUR on May, 2004

* SAF Tehnika employed 111 employees by the end of FY2004

*  Increased  competition  in Asian markets decreased the average gross

profit margin by the end of the financial year   



Sales breakdown and analysis   

  * SAF  Tehnika  increased  its  presence in global markets during the

    year 

  * China  revenues  constituted 58% of total SAF Tehnika revenues, the

    rest is divided between Eastern Europe and CIS countries. 

  * SAF  forecast  increasing  price competition in Asia, CIS countries

    and possibly Eastern Europe 



Business development 



·         Completed PDH radio product line from 7-38 GHz

·         Agreement signed to implement CRM system, which will allow to

ensure better customer support

·          Software configurable modular PDH multiplexer indoor unit is

scheduled for release in September-October 2004

·         FCC radios are under development 



Forecast FY05   



·         The audited consolidated annual report of SAF Tehnika will be

available on October, 2004.

·         SAF Tehnika plans to increase its global presence by entering

markets in at least 10 new countries

·         SAF Tehnika will continue the development of new products.

* For FY2005 the most promising markets are India and Latin America

*  Russian market is still rather scattered, but there are strong signs

of operator consolidation process 



Non audited finansial results of the Financial year started  on July 1,

2003, aviable    -   here. (219.32 KB)