Aastra Technologies - (TSX: "AAH") is pleased to report its unaudited financial results for the second quarter ended 30 June 2009.
Sales for the three months ended 30 June 2009 were $197.2 million compared to $205.8 million for the same quarter in 2008, a decrease of 4.2%. The company`s sales results for the second quarter of last year include two months of revenue from the acquisition of the Ericsson Enterprise Communications Business, which closed on 30 April 2008.
On a sequential basis, sales decreased by 10.1% from sales of $219.3 million in the first quarter of this year as a result of the weak economic conditions experienced in several markets.
Gross margin was 45.6% of sales in the quarter compared to 42.5% of sales in the same period in 2008 and 48% of sales in the first quarter of 2009. Research and development expenses in the second quarter were $21.8 million or 11.1% of sales, compared to $26.8 million or 13% of sales in the same quarter of 2008.
Selling, general and administrative expenses were $56 million or 28.4% of sales in the second quarter compared to $53.2 million or 25.8% of sales in the second quarter of 2008. As a percentage of sales, SG&A expenses increased over the same period last year as operating costs could not be reduced as quickly as the decline in sales that was experienced during the quarter.
Amortisation expense recorded in operating expenses was $5.6 million in the second quarter compared to $6.2 million in the same period last year. The company recorded interest expense of $0.2 million in the second quarter this year compared to $0.6 million in the second quarter of 2008 as a result of both lower interest rates and a lower long-term debt balance. Losses from foreign exchange were $0.3 million in the second quarter of 2009 compared to a foreign exchange gain of $1.2 million in the second quarter of 2008, due to the strengthening of the Canadian dollar compared to the Euro and US dollar during the second quarter this year.
Investment income totalled $0.7 million in second quarter compared to $0.8 million in the same quarter of 2008. While the investment income earned on excess cash in the quarter has decreased sharply compared to last year, the company earned a higher amount of financing income on its leasing business. Income tax expense was $1.2 million or 18.2% of pre-tax income compared to $0.4 million or 15.5% of pre-tax income in the same period last year.
As a result, net income for the second quarter was $5.5 million or $0.40 diluted earnings per share compared to $2.1 million or $0.13 diluted earnings per share in the same period last year.
Cash and short-term investments totalled $80.6 million at the end of June 2009 compared to $66.9 million as at 31 March 2009 and $98.2 million at the end of December 2008. During the second quarter of 2009, the company generated $15.1 million in cash flow from operations, inclusive of an increase in its net investment in leases of approximately $6 million.
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Aastra Telecom South Africa
Aastra Telecom South Africa is the sub-Saharan business unit of Aastra Technologies (TSX:"AAH"), a leading company at the forefront of the enterprise communication market. Headquartered in Concord, Ontario, Canada, Aastra develops and delivers innovative communications products and applications for businesses. Aastra`s operations are truly global with more than 50 million installed lines around the world and a direct and indirect presence in more than 100 countries. Aastra is entirely dedicated to enterprise communications and offers one of the most complete portfolios of unified communications solutions individually tailored to satisfy its customers` requirements. These range from feature-rich call managers for small and medium businesses and highly scalable ones for large enterprises, integrated mobility, call centres solutions to a wide selection of terminals. With a strong focus on open standards, Aastra enables enterprises to communicate and collaborate more efficiently. For additional information on Aastra, visit our Web site at http://www.aastra.com
Aastra Technologies
Aastra Technologies (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 networking products, including terminals, systems, and applications. For additional information on Aastra, visit our Web site at http://www.aastra.com
From time to time, we make written or oral forward-looking statements within the meaning of applicable Canadian securities legislation. We may make such statements in this press release, in other filings with Canadian regulators in reports to shareholders or in other communications. These forward-looking statements include, among others, statements with respect to our objectives, and strategies to achieve our objectives, as well as statements with respect to our beliefs, outlooks, plans, objectives, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective" and words and expressions of similar import are intended to identify forward-looking statements. 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 predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. As described in detail under the heading "Risk Factors" in our Annual Information Form filed on www.sedar.com, the material factors that could cause our actual results to differ materially from the forward-looking statements in this press release include: the global economical and financial crisis impacting businesses worldwide, exchange rate fluctuation of the Canadian dollar against other currencies, particularly with respect to the Swiss franc, Swedish krona, Euro and US dollar; product concentration and limited range of products; continued demand for our products; geographic market concentration in Europe; reliance on third party manufacturers and component suppliers; longer credit terms to customers; continued implementation of our enterprise resource planning system; potential fluctuations in quarterly financial results, particularly as a result of seasonality and geographic market concentration; risks associated with product returns and defects; consolidation, reorganisation and rapid technological change in our market; competition and the risk of third-party claims for infringement; and other risk factors that our business faces. We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about these factors that may affect future results can be found under the "Risk Factors" section and in our 2008 Annual Information Form. We do not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf.
For further information contact: Kathy Ristic, VP Finance, (905) 760-6704 investors@aastra.com
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