Informations et contacts
Contact Investor Relations
Aastra Technologies Limited
Toronto Stock Exchange "TSX"
155 Snow Blvd. Concord, Ontario Canada L4K 4N9
Aastra Reports Strong Fourth Quarter 2010 Financial Result
TORONTO, ONTARIO (Marketwire - February 15, 2011) -- Aastra Technologies Limited - (TSX: “AAH”) today reported its unaudited financial results for the three months and year ended December 31, 2010. The Company is pleased to report a significant rebound in net earnings as a result of strong revenues recorded in the fourth quarter ended December 31, 2010.
Sales for the three months ended December 31, 2010 were $216.0 million compared to $217.8 million for the same quarter in 2009, a decrease of 0.8%. Excluding the impact of changes in foreign exchange from the strengthening of the Canadian dollar, sales increased by 8.7% over the same period last year. In addition, sales for the fourth quarter in 2010 increased sequentially from sales of the third quarter of 2010 by 31.6% as a result of significant increases in many of our key markets.
Sales for the year ended December 31, 2010 were $720.9 million compared to $832.9 million for 2009. Excluding the impact of foreign exchange, sales declined by 3.0% in the twelve months ended December 31, 2010 compared to the same period of 2009.
Gross margin decreased slightly to 44.5% of sales in the fourth quarter of 2010 compared to 45.0% of sales in the same period in 2009. Gross margin for the year ended December 31, 2010 decreased slightly to 43.6% compared to 45.9% for the year in 2009. Gross margins for 2010 were negatively impacted by the impact of foreign exchange on the purchase of our inventory as well as an unfavorable product mix.
Research and development (“R&D”) expenses in the fourth quarter of 2010 were $18.2 million or 8.4% of sales, compared to $19.2 million or 8.8% of sales in the final quarter of 2009. R&D expenses for the year ended December 31, 2010 decreased to $69.4 million or 9.6% of sales from $81.8 million or 9.8% of sales in 2009.
Selling, general and administrative (“SG&A”) expenses were $52.9 million or 24.5% of sales in the fourth quarter of 2010 compared to $51.6 million or 23.7% of sales in the fourth quarter of 2009. SG&A expenses for the year ended December 31, 2010 decreased to $189.4 million or 26.3% of sales compared to $217.4 million or 26.1% of sales for the year in 2009.
Losses from the impact of foreign exchange were $2.6 million in the fourth quarter of 2010, comparable to foreign exchange losses of $2.2 million incurred in the same period of 2009. Foreign exchange losses were $10.0 million for the year in 2010 compared to $3.6 million for 2009 as a result of the general strengthening of the Canadian dollar and Swiss franc compared to the Euro and the U.S. dollar over these periods.
The Company earned interest income of $0.7 million in both fourth quarters of 2010 and 2009 while for the year, investment income was $2.6 million in 2010 compared to $2.8 million in 2009. Other income of $0.7 million was earned in the fourth quarter of 2010 as a result of an increase in the valuation of a long-term investment. Other income for the year ended December 31, 2010 includes a gain of $2.7 million realized on the sale of a product line earlier in the year.
As a result of the above, net earnings of the Company for the three months ended December 31, 2010 were $14.4 million or $1.02 diluted earnings per share compared to $15.3 million or $1.09 diluted earnings per share in the same period in 2009. Net earnings for the year ended December 31, 2010 were $24.0 million or $1.69 diluted earnings per share compared to $44.6 million or $3.20 diluted earnings per share in 2009.
Cash and short-term investments totaled $94.9 million at the end of 2010 compared to a balance of $116.9 million at the end of 2009. During the fourth quarter of 2010, the Company generated $16.7 million of cash flow from operations, net of working capital increases. For the year, the Company generated $8.4 million of cash flow from operations, net of significant increases in working capital, primarily inventory and accounts receivable during the year. In addition, the Company repaid $14.9 million of long term debt during 2010 and invested in $12.6 million in property, plant and equipment and intangible assets during 2010.
The Company is also pleased to announce that it will pay a dividend to its shareholders of $0.20 per share for this quarter, payable on March 24, 2011 to all shareholders of record on March 3, 2011. 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 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.
For further information contact:
Allan Brett, CFO
at (905) 760-4200