SAF Tehnika                                                               27.01.2005.



SAF Tehnika group non-audited consolidated financial results for the 6 month period 

ended December 31, 2004



           	LVL	        EUR

Revenues	       5 840 621	8 308 138

EBIT    	       1 378 335	1 960 647

Net Profit     1 045 900	1 487 767



The group’s non-audited consolidated financial results met management’s expectations. 

The group’s operational developments during the reported period were also in line with 

management’s plans. 



Chinese mobile operators have delayed infrastructure investments while they await 3G licence 

auction outcomes. The slowdown in the Chinese market was compensated by increased sales to 

Eastern Europe and Colombia. Regular sales have also commenced to Iran. Consolidated revenues 

decreased by 25% in comparison with the first half period of financial year 2003/4. However, 

if an unanticipated delivery to China during the previous corresponding period is excluded, 

the difference decreases to 11%. 



This highlights two factors relating to the group’s changing operating environment. Firstly, 

revenue concentration has been significantly decreased, as no single country exceeds 15% of 

revenues (on a half year basis). This has been one of the key management targets to achieve 

in the 2004/5 financial year. Secondly, as the company is experiencing rapid revenue growth 

off a low and narrow base, it is relatively changeable, hence management recommends focusing 

on the annual revenue growth rates to ascertain a more representative view of the group’s 

development. 



Going into the second half of the financial year, management expects an improved third fiscal 

quarter as the influence of the significant negative effect on sales of the Chinese New Year 

celebrations will be appreciably mitigated. Furthermore, management feels comfortable about 

achieving last year’s full year results from a revenue perspective.



The strategic commitment of the group to enter Latin American and Middle East markets has 

brought results during the reporting period. The group successfully established its presence 

in Colombia and Paraguay. Continued market development is being undertaken in Pakistan. A 

signed agreement with Tele2 positions the group for further sales growth opportunities in 

the Russian and Baltic markets.



At the close of the reporting period SAF Tehnika successfully passed the ISO 9001:2000 quality 

standard annual audit. The audit was performed by auditors from the certification organization 

„Bureau Veritas Quality International”. 



During the reporting period the integration of SAF Tehnika Sweden was completed and SAF Tehnika 

Sweden became a component of the group’s research and development department. SAF Tehnika 

Sweden costs therefore impacted the EBIT margin for the first time during the reporting period. 



On December 31, 2004 the group employed 126 people.