EANS-News: SAF AG / Conclusion of direct business agreement gives SAF successful start into fiscal year 2011

Tägerwilen (euro adhoc) -

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Subtitle: Maintenance and service business strong in the first quarter

  • Service business grows 131.9 percent to EUR 0.6 million in Q1/11
  • Total revenues reach EUR 3.1 million in first quarter
  • At EUR 0.2 million, licensing revenue remains below expectations

Tägerwilen/Switzerland, May 13, 2011. SAF AG (ISIN CH0024848738), listed in the Prime Standard, started strong in fiscal year 2011 with the conclusion of a direct business agreement and the formation of a development partnership. However, these successes will not be reflected in revenues until subsequent quarters. The Company thus generated EUR 3.1 million in total revenues for the first quarter, representing a 16.3 percent decline in revenue year on year (Q1/10: EUR 3.6 million). This decrease in revenues also had a negative impact on profit figures, resulting in a consolidated net loss of EUR 0.4 million. By contrast, the net financial result increased year on year, from EUR -0.1 million in the first quarter of 2010 to EUR 0.1 million.

Licensing revenues fell sharply as compared to the extremely successful first quarter of 2010 (EUR 1.3 million), declining 81.0 percent to EUR 0.2 million.

The positive trend in the maintenance and service business from the previous year continued into the first quarter of 2011. The Company recorded a slight increase in maintenance revenues of 6.2 percent to EUR 2.3 million (Q1/10:
EUR 2.1 million). The service business showed a respectable increase of 131.9 percent to EUR 0.6 million (Q1/10: EUR 0.2 million). The sharp increase in service revenues was due mainly to steady growth in SAF's direct customer advisory business as well as to development and service revenues from its partner SAP. For example, the two companies cooperated to develop a customer specific extension of the SAP F&R (Forecasting & Replenishment) solution.

"We have signed our first direct customer in the Netherlands with Jan Linders, a leading supermarket chain there. This deal is confirmation of our strategy of further increasing SAF's growth and expanding direct sales into new regions," commented Udo Meyzis, CEO of SAF AG, on the success in the direct business. The company concluded an agreement at the beginning of April to license SAF RetailSuite Store for all 54 of its stores. "However, our successful development partnership with Coop illustrates our ability to leverage new approaches and technologies to overcome the challenges of retail."

The Company's successful deals with Coop and Jan Linders translate into a steady pipeline and the key advantage of being able to showcase satisfied and successful customers. This places SAF in an excellent position from which to turn the tide on license revenues in the quarters to come. This will also depend on the Company's ability to channel the positive cooperation with SAP in the licensing business in prior years into a lasting success.

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. 100 people. Consolidated sales revenues for fiscal year 2010, according to IFRS statements, were EUR 15.6 million with consolidated profit of EUR 1.4 million. SAP currently holds approx. 93 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.

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 2010. SAF does not plan to update the forward looking statements, nor does it assume the obligation to do so.

end of announcement euro adhoc

company: SAF AG
High-Tech-Center 2 / Bahnstrasse 1
CH-8274 Tägerwilen
phone: +41 (0)71 666 79 48
FAX: +41 (0)71 666 79 40
mail: investorrelations@saf-ag.com
WWW: http://www.saf-ag.com
sector: Software
ISIN: CH0024848738
indexes: Prime All Share, Technology All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin, Stuttgart, Düsseldorf, München
language: English

Rückfragen & Kontakt:

Alwin Grünwald
Tel.: +41 (0) 71666 7948
e-mail: alwin.gruenwald@saf-ag.com