EANS-News: SAF AG / With a solid project pipeline, SAF well positioned for second half of 2011 fiscal year

Tägerwilen (euro adhoc) -

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Subtitle: Maintenance and service business continues strong growth

  • Service business records 50.9 percent growth to EUR 0.7 million in Q2/11
  • Total revenues in second quarter at EUR 3.7 million
  • At EUR 0.7 million, licensing revenues below expectations

Tägerwilen, Switzerland, August 17, 2011.
The Prime Standard listed SAF AG (ISIN CH0024848738) posted total revenues of EUR 3.7 million in the second quarter of 2011 (Q2/10: EUR 4.4 million). With revenues at EUR 0.7 million, the licensing business was down by 57.5 percent compared with the second quarter of 2010 (Q2/11: EUR 1.7 million). The maintenance and service business continued its encouraging growth trend throughout the second quarter. The maintenance business grew quarter on quarter by 3.0 percent to EUR 2.3 million. The service business developed excellently, growing by 50.9 percent to EUR 0.7 million (Q2/10: EUR 0.5 million). In addition to the solid service business with the OEM partner SAP, SAF's direct consulting, analysis and implementation projects also contributed to this excellent performance.

The decline in revenues only was partially offset by a 3.9 percent year on year reduction in operating expenses to EUR 3.5 million in the second quarter. Consolidated net profit thus fell to EUR 0.4 million (Q2/10: EUR 1.0 million). SAF recorded a 15.8 percent decline in revenue to EUR 6.8 million for the first half of 2011, breaking even with a consolidated net profit of EUR 0.0 million.

SAF entered into a strategic partnership with the Barcelona-based solutions provider Supply Nexus during the second quarter, enabling it to expand its distribution and partnership network and to position itself for success on the Iberian Peninsula. Projects involving Coop and the Dutch supermarket chain Jan Linders are progressing as planned.

"SAF's solutions provide retailers with significant verifiable cost reductions and decisive competitive ad-vantages along the entire value chain," said Udo Meyzis, CEO of SAF AG. "Thanks to future investments in enhanced software solutions for automated replenishment and the synergies achieved through the close partnership with SAP, SAF is in an optimal position to assist its customers in mastering the challenges of their ordering process. SAF's solid project pipeline lays the foundation for growth in licensing revenue in the coming quarters."

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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 AG currently holds approx. 94 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

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