AASTRA TECHNOLOGIES LIMITED 
By TORONTO, ONTARIO (Marketwired - October 17, 2013) -- Aastra Technologies Limited - (TSX: "AAH") today reported its unaudited financial results for the third quarter ended September 30, 2013.
Revenue for the three months ended September 30, 2013 was $139.6 million compared to $137.1 million for the same quarter in 2012, an increase of approximately 1.9%. Stronger revenue from the U.S. and Latin America, as well as strength from foreign exchange rates, helped offset weaker revenues from Europe when compared to the same quarter in 2012. Revenue for the nine months ended September 30, 2013 was $424.0 million compared to $431.4 million in the same period last year, a decrease of 1.7%.
Gross margin in the third quarter increased slightly to 43.2% of revenue compared to 42.1% of revenue in the same period in 2012 due mainly to a change in product mix this quarter, offset partially by higher inventory provisions recorded during the third quarter this year.
Selling, general and administrative ("SG&A") expenses were $38.9 million or 27.8% of revenue in the third quarter of 2013 compared to $39.9 million or 29.1% of revenue in the third quarter of 2012. SG&A expenses include restructuring expenses of $0.5 million in the third quarter of 2013, compared to $0.2 million in the same quarter of 2012.
Research and development ("R&D") expenses in the third quarter of 2013 were $12.4 million or 8.9% of revenue, compared to $13.6 million or 9.9% of revenue in the same quarter of 2012. R&D expenses include restructuring expenses of $0.2 million (2012 - $0.1 million). Operating expenses were lower in the third quarter as a result of continued cost control and efficiencies, including the impact of our restructuring efforts implemented earlier this year.
Foreign exchange losses of $0.5 million were recognized in the third quarter of 2013, compared to $0.7 million in the same period last year. Amortization expense recorded in operating expenses was $3.8 million in the third quarter of 2013 compared to $3.6 million in the third quarter of 2012.
The Company recorded net finance income of $2.0 million in the third quarter of 2013 compared to $0.9 million in the same period in 2012. Income tax expense of $1.3 million or 18.7% of pre-tax profit compared to $0.1 million or 16.2% of pre-tax profit in the third quarter last year.
As a result of the above, profit increased sharply in the third quarter this year to $5.5 million or $0.47 diluted earnings per share compared to $0.7 million or $0.06 diluted earnings per share in the same period in 2012. Profit for the nine months ended September 30, 2013 is also up significantly to $8.0 million or $0.68 diluted earnings per share compared to $4.1 million or $0.31 diluted earnings per share in the same period of 2012.
Included in the income statement this quarter was $0.8 million of restructuring expenses compared to $0.3 million for the same period last year. For the year-to-date, restructuring expenses of $6.7 million have been recorded in 2013 compared to only $1.1 million for the same period in 2012.
Cash and short-term investments totaled $89.3 million at the end of September 2013 compared to $107.4 million at December 31, 2012. During the third quarter of 2013, the Company generated $30.1 million of cash flow in operations. Accounts receivables decreased by $20.7 million from $138.7 million at June 30, 2013 mainly as a result of stronger collections experienced during the third quarter this year. In addition, inventory decreased by $2.8 million and finance lease receivables decreased by $1.8 million. The Company also sold long-term investments totaling $6.6 million during the third quarter. Finally, the Company returned $84.9 million as a special dividend 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 14, 2013 to all shareholders of record on October 31, 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 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 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:
Investor Relations,
(905) 760-4200
investors@aastra.com
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