TORONTO, ONTARIO — (Marketwire) — 02/21/13 — Aastra Technologies Limited – (TSX: AAH) today reported its unaudited financial results for the fourth quarter ended December 31, 2012.
Revenue for the three months ended December 31, 2012 was $175.2 million compared to $199.7 million for the same quarter in 2011, a decrease of approximately 12.3%. Excluding the impact of foreign exchange, revenue dropped by approximately 7.1% from the same period last year.
Revenue for the year ended December 31, 2012 was $606.6 million compared to $693.0 million for 2011. Excluding the impact of foreign exchange, revenue declined by 7.8% in the twelve months ended December 31, 2012 compared to the same period of 2011.
Gross margin increased to 43.8% of revenue in the fourth quarter of 2012 compared to 43.2% of revenue in the same period in 2011. Gross margin for the year ended December 31, 2012 increased to 43.4% compared to 42.3% for the year in 2011.
Research and development (“R&D”) expenses in the fourth quarter of 2012 were $13.4 million or 7.7% of revenue, compared to $14.8 million or 7.4% of revenue in the final quarter of 2011. R&D expenses for the year ended December 31, 2012 decreased to $56.8 million or 9.4% of revenue from $63.2 million or 9.1% of revenue.
Selling, general and administrative (“SG&A”) expenses were $44.6 million or 25.5% of revenue in the fourth quarter this year compared to $44.4 million or 22.2% of revenue in the fourth quarter of 2011. SG&A expenses for the year ended December 31, 2012 decreased to $171.7 million or 28.3% of revenue compared to $178.5 million or 25.8% of revenue for the year in 2011.
Foreign exchange losses of $1.1 million were recognized in the fourth quarter of 2012, compared to a foreign exchange loss of $1.3 million in the same period last year. Foreign exchange losses were $3.2 million for the year in 2012 compared to $3.5 million for 2011.
Depreciation and amortization expense recorded in operating expenses decreased to $3.9 million in the quarter compared to $4.9 million in the fourth quarter of 2011 as certain intangible assets acquired in previous years were fully amortized at the end of 2011.
The Company recorded net finance income of $1.4 million in the fourth quarter of 2012 compared to $0.7 million in the same period in 2011. Net finance income for the year in 2012 was $4.7 million compared to $3.3 million for the year in 2011. In 2012, the Company recorded a fair value adjustment gain of $1.8 million on a long-term investment compared to a gain of $0.2 million in 2011.
Despite continued profits before income tax, the Company recorded an income tax recovery of $12.9 million in the fourth quarter of 2012 related to a reduction in current income tax liabilities of $17.1 million as a result of tax years becoming statute barred or settlements being made in certain jurisdictions. Comparatively, income tax expense of $3.4 million or 15.8% of pre-tax profit was recognized in the fourth quarter of 2011. Income tax recovery was $11.9 million for the year in 2012 compared to income tax expense of $4.8 million or 15.5% of pre-tax profit for the year in 2011.
As a result of the above, profit increased in the fourth quarter of 2012 to $28.0 million or $2.42 diluted earnings per share compared to $18.2 million or $1.30 diluted earnings per share in the same period in 2011. Profit for the year ended December 31, 2012 was $32.8 million or $2.60 diluted earnings per share compared to $26.2 million or $1.85 diluted earnings per share in 2011. Despite an ongoing difficult period in our business, this represents the Company-s 59th consecutive quarter of profitability.
Cash and short-term investments totaled $107.4 million at the end of 2012 compared to $134.1 million at the end of 2011. During the fourth quarter of 2012, the Company generated $10.6 million of cash flow from operations. For the year, the Company generated $44.0 million of cash flow from operations as a result of continued profitability. In addition, the Company used $56.1 million to repurchase its own common shares, paid $9.9 million in dividends to its common shareholders and invested $6.5 million in property, plant and equipment and intangible assets during 2012.
Finally, 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 March 20, 2013 to all shareholders of record on March 6, 2013. The dividend declared today has been designated as an “eligible” dividend for the purposes of the Income Tax Act (Canada) and similar provincial legislation. 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 .
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 , 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.
Contacts:
Aastra Technologies Limited
Investor Relations
(905) 760-4200
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