Company News: Page (1) of 1 - 10/19/11 Email this story to a friend. email article Print this page (Article printing at MyDmn.com).print page facebook

Aastra Reports Third Quarter Results

(October 19, 2011)

TORONTO, ONTARIO -- (Marketwire) -- 10/19/11 -- Aastra Technologies Limited - (TSX:AAH) today reported its unaudited financial results for the third quarter ended September 30, 2011. Note that certain 2010 numbers have been restated to comply with the new IFRS accounting rules for Canadian companies adopted by Aastra on January 1, 2011.

Sales for the three months ended September 30, 2011 were $156.6 million compared to $160.7 million for the same quarter in 2010, a decrease of approximately 2.6%.

Gross margin increased slightly to 41.7% of sales in the third quarter of 2011 compared to 40.9% of sales in the same period in 2010. Despite lower sales volumes and higher inventory provisions, gross margins were strengthened by higher average selling prices and a favorable product mix.

Research and development ("R&D") expenses in the third quarter of 2011 were $15.2 million or 9.7% of sales, compared to $16.1 million or 10.0% of sales in the same quarter of 2010. Excluding the impact of foreign exchange, R&D expenses decreased by 10.9% compared to the same period last year as a result of lower labor costs.


Selling, general and administrative ("SG&A") expenses were $43.4 million or 27.7% of sales in the third quarter of 2011 compared to $43.0 million or 26.8% of sales in the third quarter of 2010. Excluding the impact of foreign exchange, SG&A expenses decreased approximately 2.9% from the same period last year.

Foreign exchange losses of $0.6 million were recognized in the third quarter of 2011 compared to a foreign exchange loss of $1.7 million in the third quarter of 2010. Amortization expense recorded in operating expenses decreased slightly to $5.0 million in the third quarter of 2011 compared to $5.3 million in the third quarter of 2010.

Finance income of $0.8 million was recorded in the third quarter of 2011 compared to $0.7 million in the same quarter in 2010. As a result of the above, profit increased in the third quarter of 2011 to $1.7 million or $0.12 diluted earnings per share compared to $0.1 million or $0.01 diluted earnings per share in the same period in 2010.

Cash and short-term investments totaled $118.5 million at the end of September 2011 compared to $94.9 million at December 31, 2010 and $77.5 million at the end of the second quarter this year. During the third quarter of 2011, the Company generated very strong cash flows from operations of $43.4 million as a result of continued profitability and significant improvements in working capital balances. Accounts receivable decreased by $13.8 million since June 30, 2011 to $150.0 million. In addition, inventory decreased by $13.7 million or 11.9% in the third quarter to $101.3 million while comparing the same periods, accounts payable increased by $5.8 million. In addition, the Company used $2.8 million to pay dividends to shareholders during the third quarter.

The Company is pleased to announce that it will pay a dividend to its shareholders of $0.20 per share for this quarter, payable on November 24, 2011 to all shareholders of record on November 3, 2011. Shareholders of Aastra are entitled to receive dividends only if and when such dividends have been declared and there is no entitlement to any dividends prior to any declaration thereof by Aastra's Board of Directors.

About Aastra Technologies Limited

Aastra Technologies Limited (TSX:AAH) is a global company at the forefront of the Enterprise Communication market. Headquartered in Concord, Ontario, Canada, Aastra develops and delivers innovative and integrated solutions that address the communication needs of businesses small and large around the world. Aastra enables Enterprises to communicate and collaborate more efficiently and effectively by offering customers a full range of open standard IP-based and traditional communications solutions, including terminals, systems, and applications. For additional information on Aastra, visit our website at http://www.aastra.com.

Certain statements made herein may be forward-looking statements within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements with respect to our Board of Directors declaring any future quarterly dividends and, if so declared, the amount of such dividends. By their very nature, forward-looking statements involve numerous factors and assumptions, and are subject to inherent risks and uncertainties, both general and specific, which give rise to the possibility that such forward-looking statements will not be achieved.

Shareholders are entitled to receive dividends only if and when such dividends have been declared and there is no entitlement to any dividends prior to any declaration thereof by our Board of Directors. The material factors that will be considered by our Board of Directors in determining whether it is appropriate to declare any future dividends, and the amount of any such dividends, include: our earnings, cash flow, quarterly fluctuations in financial results and financing requirements to fund acquisitions or other business opportunities. Please refer to our filings on the website maintained by the Canadian Securities Administrators at www.sedar.com, including our Annual Information Form and our annual and quarterly Management Discussion and Analyses for other material factors that may be considered by our Board of Directors in determining whether to declare any future dividends and the amount of any such dividends.

We caution readers not to place undue reliance on these forward-looking statements as our actual results may differ materially from our expectations if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Therefore, we cannot provide any assurance that forward-looking statements will materialize. Unless otherwise required pursuant to applicable Canadian securities legislation, we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AASTRA TECHNOLOGIES LIMITED CONSOLIDATED STATEMENTS OF PROFIT (UNAUDITED) Stated in thousands of Canadian dollars, except per share amounts YEAR-TO-DATE 3rd QUARTER Nine months Three months ended September 30th ended September 30th 2011 2010 2011 2010 ---------------------------------------------------------------------------- Revenue $ 493,313 $ 502,066 $ 156,557 $ 160,686 Cost of sales 286,451 286,537 91,227 94,926 ---------------------------------------------------------------------------- 206,862 215,529 65,330 65,760 Expenses (income): Selling, general and administrative 134,107 133,698 43,437 43,014 Research and development 48,365 51,193 15,196 16,116 Depreciation and amortization 15,434 16,388 4,957 5,346 Foreign exchange loss 2,180 7,358 557 1,727 Other income - (2,682) - - ---------------------------------------------------------------------------- Results from operating activities 6,776 9,574 1,183 (443) Finance income (2,853) (2,175) (812) (733) Finance expense 290 469 43 123 ---------------------------------------------------------------------------- Profit before income taxes 9,339 11,280 1,952 167 Income taxes 1,382 1,938 266 88 ---------------------------------------------------------------------------- Profit for the period $ 7,957 $ 9,342 $ 1,686 $ 79 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Earnings per share: Basic $ 0.57 $ 0.67 $ 0.12 $ 0.01 Diluted $ 0.56 $ 0.66 $ 0.12 $ 0.01 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (i) Actual common shares outstanding as at September 30, 2011 - 14,074,385 (2010 - 14,034,385) (ii) Weighted average common shares outstanding for the nine months and three months ended September 30, 2011 - 14,071,088 and 14,074,385 (2010 - 13,978,455 and 14,034,385) (iii) Weighted average fully diluted common shares outstanding for the nine months and three months ended September 30, 2011 - 14,178,710 and 14,146,079 (2010 - 14,146,719 and 14,107,849) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The interim consolidated financial statements for the nine months and three months ended September 30, 2011 and 2010 have not been reviewed by an auditor.

--------------------------------------------------------------------------- --------------------------------------------------------------------------- AASTRA TECHNOLOGIES LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Stated in thousands of Canadian dollars YEAR-TO-DATE 3rd QUARTER Nine months Three months ended September 30th ended September 30th 2011 2010 2011 2010 --------------------------------------------------------------------------- Cash and cash equivalents provided by (used in): Operating activities: Profit for the period $ 7,957 $ 9,342 $ 1,686 $ 79 Depreciation of property, plant and equipment 8,598 8,576 2,885 2,895 Amortization of intangible assets 10,260 10,906 3,203 3,551 Share-based compensation expense 1,160 1,224 299 505 Loss on sale of property, plant and equipment 490 447 57 129 Other income - (2,682) - - Finance income (2,853) (2,175) (812) (733) Finance expenses 290 469 43 123 Income tax expense 1,382 1,938 266 88 Change in non-cash pension liabilities 731 342 309 (284) Change in non-cash operating working capital 23,037 (28,250) 34,695 (12,272) Income taxes paid (5,016) (9,986) 810 (3,720) --------------------------------------------------------------------------- 46,036 (9,849) 43,441 (9,639) --------------------------------------------------------------------------- Investing activities: Maturity of short-term investments - 3,068 - 5 Interest received 2,459 2,065 870 786 Proceeds on disposal of property, plant and equipment 8 9 - 9 Purchase of property, plant and equipment (3,902) (8,033) (1,430) (2,370) Purchase of intangible assets (440) (1,057) (119) (521) Disposition, net of cash - 3,649 - - --------------------------------------------------------------------------- (1,875) (299) (679) (2,091) --------------------------------------------------------------------------- Financing activities: Dividends paid to shareholders (8,444) (8,387) (2,815) (2,807) Proceeds from exercise of share options 251 3,063 - - Receipt of acquired lease receivables 578 1,156 178 292 Payment of acquired loan payable (578) (1,156) (178) (292) Increase in loans payable 300 - - - Repayment of loans payable (15,855) (14,874) (364) (7,681) Finance costs paid (277) (520) (44) (157) --------------------------------------------------------------------------- (24,025) (20,718) (3,223) (10,645) --------------------------------------------------------------------------- Foreign exchange on cash held in foreign currency 3,430 (758) 1,401 234 -------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents 23,566 (31,624) 40,940 (22,141) Cash and cash equivalents, beginning of period 90,704 113,596 73,330 104,113 -------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 114,270 $ 81,972 $ 114,270 $ 81,972 --------------------------------------------------------------------------- ---------------------------------------------------------------------------

The interim consolidated financial statements for the nine months and three months ended September 30, 2011 and 2010 have not been reviewed by an auditor.

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AASTRA TECHNOLOGIES LIMITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) Stated in thousands of Canadian dollars SEPTEMBER 30th DECEMBER 31st JANUARY 1st 2011 2010 2010 ---------------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 114,270 $ 90,704 $ 113,596 Short-term investments 4,194 4,153 3,309 Trade and other receivables 149,996 183,977 175,082 Current tax assets 5,000 5,225 5,986 Inventories 101,276 115,374 81,398 Finance lease receivables 20,613 17,426 11,831 Acquired lease receivables 443 714 1,544 Prepaid expenses and other assets 9,297 7,279 7,088 ---------------------------------------------------------------------------- 405,089 424,852 399,834 Long-term investment 5,641 5,251 4,525 Deferred tax assets 15,518 14,015 13,230 Finance lease receivables 26,117 24,324 28,597 Acquired lease receivables 355 607 1,597 Property, plant and equipment 33,848 37,510 41,918 Goodwill 47,786 46,321 46,391 Intangible assets 29,922 38,489 53,965 Other assets 638 625 611 ---------------------------------------------------------------------------- $ 564,914 $ 591,994 $ 590,668 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- LIABILITIES AND EQUITY Current liabilities: Trade and other payables $ 117,890 $ 143,043 $ 122,745 Current tax liabilities 26,152 29,467 33,294 Deferred income 35,875 33,524 31,741 Current portion of loans payable 536 15,740 16,490 Current portion of provisions 14,534 14,065 16,447 ---------------------------------------------------------------------------- 194,987 235,839 220,717 Pensions 26,325 24,305 31,332 Loans payable 355 658 16,561 Provisions 3,160 2,970 3,512 Deferred tax liabilities 9,234 10,493 13,735 Other liabilities 1,089 1,154 1,481 ---------------------------------------------------------------------------- 235,150 275,419 287,338 ---------------------------------------------------------------------------- Equity: Share capital 94,904 94,653 90,488 Contributed surplus 10,001 8,892 8,030 Translation reserves 3,805 (8,511) - Retained earnings 221,054 221,541 204,812 ---------------------------------------------------------------------------- 329,764 316,575 303,330 ---------------------------------------------------------------------------- $ 564,914 $ 591,994 $ 590,668 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The interim consolidated financial statements for the nine months and three months ended September 30, 2011 and 2010 have not been reviewed by an auditor.

Contacts:
Aastra Technologies Limited
Investor Relations
(905) 760-4200
investors@aastra.com
www.aastra.com


Copyright @ Marketwire

Page: 1


Related Keywords: Aastra Technologies Limited , Canada, Toronto, Marketwire, , Financial, Business, Other,

HOT THREADS on DMN Forums
Content-type: text/html  Rss  Add to Google Reader or
Homepage    Add to My AOL  Add to Excite MIX  Subscribe in
NewsGator Online 
Real-Time - what users are saying - Right Now!

Our Privacy Policy --- @ Copyright, 2015 Digital Media Online, All Rights Reserved