Aastra Reports Record Annual Net Income

18.02.2010

PRESS RELEASE Aastra Reports Record Annual Net Income ORONTO, ONTARIO (Marketwire - February 16, 2010) Aastra Technologies Limited - (TSX: “AAH”) today reported its unaudited financial results for the three months and year ended December 31, 2009. The Company is pleased to report a significant improvement in net earnings in the fourth quarter resulting in a record net income for the year ended December 31, 2009. In addition, the Company is also pleased to announce an increase to its quarterly dividend to $0.20 per s

PRESS RELEASE

 

Aastra Reports Record Annual Net Income

 

 

ORONTO, ONTARIO (Marketwire - February 16, 2010) Aastra Technologies Limited - (TSX: “AAH”) today reported its unaudited financial results for the three months and year ended December 31, 2009. The Company is pleased to report a significant improvement in net earnings in the fourth quarter resulting in a record net income for the year ended December 31, 2009. In addition, the Company is also pleased to announce an increase to its quarterly dividend to $0.20 per share for this quarter, payable on March 24, 2010 to all shareholders of record on March 3, 2010. Net revenue for the three months ended December 31, 2009 was $217.8 million compared to $261.8 million for the same quarter in 2008, a decrease of 16.8 from the previous year. While sales were down from the record level experienced in the fourth quarter last year, sales for the quarter were up 9.6 sequentially from sales of $198.7 million in the third quarter of 2009. Sales for the year ended December 31, 2009 were up slightly at $832.9 million compared to $832.1 million for 2008. The results for 2008 include only 8 months of sales of the former Ericsson Enterprise product lines acquired on April 30, 2008.

 

Excluding the impact of the Ericsson Enterprise acquisition, sales would have decreased by approximately 8 from 2008 as a result of the weaker global economy in 2009 and its impact on the IT spending by our enterprise end customers across many of our markets. Gross margin decreased slightly to 45.0 of sales in the fourth quarter of 2009 compared to 47.0 of sales in the same period in 2008. Gross margin for the year ended December 31, 2009 was 45.9 compared to 44.9 for the year in 2008. Research and development expenses in the fourth quarter of 2009 were $19.2 million or 8.8 of sales, compared to $27.7 million or 10.6 of sales in the final quarter of 2008. Research and development expenses for the year ended December 31, 2009 decreased to $81.8 million or 9.8 of sales from $98.0 million or 11.8 of sales in 2008.

 

 

The Company actively worked in 2009 to create efficiencies across its research and development centers. Selling, general and administrative expenses were $51.6 million or 23.7 of sales in the fourth quarter of 2009 compared to $67.9 million or 25.9 of sales in the fourth quarter of 2008. Selling, general and administrative expenses for the year ended December 31, 2009 were down slightly to $217.4 million or 26.1 of sales compared to $218.1 million or 26.2 of sales for the year in 2008. Amortization expense recorded in operating expenses was $5.3 million in the fourth quarter of 2009 compared to $9.6 million in the fourth quarter of 2008. For the year, amortization expenses recorded in operating expenses were $23.0 million compared to $26.4 million for the year in 2008. Amortization expenses decreased as certain intangible assets became fully amortized at the end of 2008.

 

In the fourth quarter of 2008 the Company recorded a non-cash charge on the impairment of certain long-lived assets and goodwill of $14.1 million which had a significant negative impact on earnings in that quarter. Losses from the impact of foreign exchange were $2.2 million in the fourth quarter of 2009, comparable to foreign exchange losses of $2.1 million incurred in the same period of 2008. Foreign exchange losses were $3.6 million for the year in 2009 compared to $3.1 million for 2008 as a result of the general strengthening of the Canadian dollar over these periods.