Company News • 10.11.2009

SAF records revenue growth of 15.3 percent for the first nine months 2009

Weak license business in Q3/09 and additional costs due to the takeover affect earnings

• Revenues of EUR 3.1 million in Q3/09 (Q3/08: EUR 4.9 Mio.)
• License revenues decreased by 77.5 percent in Q3/09
• Maintenance business increased again by 26.6 percent within the quarter
• Additional costs in the course of the takeover affect earnings
• SAP is major shareholder with approx. 70 percent

Since September 2009 the longstanding OEM partner SAP holds approximately 70 percent of SAF’s share capital, making it the new major shareholder of SAF, which is listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN CH0024848738). The additional costs in the course of the takeover affect earnings in the third quarter 2009 but in the first nine months of the year SAF disclosed a revenue increase of 15.3 percent.

From an earnings standpoint, the licensing business experienced a disappointing third quarter this year. Licensing revenues were down by roughly 78 percent as compared to the third quarter 2008, the best quarter ever. SAF generated a total of EUR 3.1 million in revenues. Having generated EUR 2.0 million in revenues, the maintenance business contributed the most to that figure. This segment has developed into a reliable source of revenues, growing with every new licensing agreement signed. The fact that SAF is able to cope with even a weaker quarter becomes evident in light of its performance in the first nine months of this year. SAF enjoyed good momentum during that period, and lifted its revenues by 15.3 percent to EUR 12.1 million.

The takeover has also had its effect on earnings for the third quarter, in which we recorded a sizeable consolidated net loss of EUR 2.1 million. This result was due to non-recurring expenses, primarily for the recognition of one-off accruals for personnel-related expenses. In addition to these, there were expenses incurred to execute the stock option plan, and other expenses in relation to the takeover. The third-quarter revenues did not compensate for these non-recurring expenses, which amounted to approximately EUR 2.3 million.

Given the projected revenues from the maintenance and services business, the Company is confident that in the 2009 fiscal year it will outstrip the EUR 13.4 million in revenues it generated in 2008, and continues to grow. "How large the expected jump in revenues will be, depends mainly on how the licensing business will develop in the fourth quarter", comments Dr. Andreas von Beringe, CEO at SAF, the outlook for the fiscal year. It is currently expected that this
additional takeover costs will not be compensated during the running year and will be reflected in the net profit. Von Beringe adds, "Our Company is excellently positioned for further growth under SAP’s aegis. SAP has announced its intention to preserve SAF as an independent entity. This applies to our products and locations, as well as our direct sales force, which we have expanded considerably in recent years."

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