TORONTO, ONTARIO — (Marketwired) — 04/24/13 — Aastra Technologies Limited – (TSX: AAH) today reported its unaudited financial results for the first quarter ended March 31, 2013.
Revenue for the three months ended March 31, 2013 was $133.5 million compared to $147.3 million for the same quarter in 2012, a decrease of approximately 9.3%. Excluding the impact of foreign exchange, revenue dropped approximately 10.4% from the same period last year.
Gross margin decreased to 42.9% of revenue in the first quarter of 2013 compared to 43.4% of revenue in the same period in 2012 due mainly to higher inventory provisions and restructuring costs recognized in the first quarter this year. Gross margins were also negatively impacted by higher overhead ratios. The Company continues to experience an increase in the portion of revenue derived from higher margin products and service; this trend helped partially offset the other negative impacts on gross margins experienced in the first quarter.
Research and development expenses in the first quarter of 2013 were $14.8 million or 11.1% of revenue, compared to $15.0 million or 10.2% of revenue in the same quarter of 2012. Selling, general and administrative (“SG&A”) expenses were $40.6 million or 30.4% of revenue in the first quarter of 2013 compared to $43.1 million or 29.2% of revenue in the first quarter of 2012. Operating expenses were lower in the first quarter as a result of continued cost control and efficiencies.
Foreign exchange gain of $0.8 million was recognized in the first quarter of 2013 mainly as a result of the impact of a stronger Euro during the three months ended March 31, 2013. Amortization expense recorded in operating expenses decreased to $3.8 million in the first quarter of 2013 compared to $4.3 million in the first quarter of 2012 as certain intangible assets acquired in previous years have become fully amortized.
The Company recorded net finance income of $1.1 million in the first quarter of 2013 compared to $1.2 million in the same period in 2012. Income tax expense of $0.02 million or 18.3% of pre-tax profit compared to 17.7% of pre-tax profit in the first quarter last year.
As a result of the above, profit decreased in the first quarter this year to $0.1 million or $0.01 diluted earnings per share compared to $1.7 million or $0.12 diluted earnings per share in the same period in 2012.
Cash and short-term investments totaled $117.8 million at the end of March 2013 compared to $107.4 million at December 31, 2012. During the first quarter of 2013, the Company generated $13.9 million of cash flow in operations. Accounts receivables decreased by $27.9 million as a result of the seasonally weaker sales value. In addition, inventory decreased by an additional $0.9 million and finance lease receivables decreased by $2.8 million. The Company also returned $2.3 million in dividends to shareholders during the first 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 May 21, 2013 to all shareholders of record on May 7, 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.
The interim consolidated financial statements for the three months ended March 31, 2013 and 2012 have not been reviewed by an auditor.
(1)Restated to reflect changes resulting from the retrospective application of the amendments to accounting standard IAS 19 (Revised), Employee Benefits.
The interim consolidated financial statements for the three months ended March 31, 2013 and 2012 have not been reviewed by an auditor.
(1)Restated to reflect changes resulting from the retrospective application of the amendments to accounting standard IAS 19 (Revised), Employee Benefits.
The interim consolidated financial statements for the three months ended March 31, 2013 and 2012 have not been reviewed by an auditor.
(1)Restated to reflect changes resulting from the retrospective application of the amendments to accounting standard IAS 19 (Revised), Employee Benefits.
Contacts:
Aastra Technologies Limited
Investor Relations
(905) 760-4200
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