TORONTO, ONTARIO (July 28, 2004) -- Aastra Technologies Limited - (TSX: “AAH”) today announced its financial results for the second quarter ended June 30, 2004. Net earnings for the three months ended June 30, 2004 were $5.8 million or $0.33 diluted earnings per share compared to $2.9 million or $0.17 diluted earnings per share for the same period last year. Net earnings for the six months ended June 30, 2004 were $10.4 million or $0.59 diluted earnings per share compared to $8.9 million or $0.52 diluted earnings per share for the same period in 2003. These second quarter 2004 financial results represent the Company’s 25th consecutive quarter of profitability.
Net sales for the three months ended June 30, 2004 were $64.9 million compared to net sales of $33.1 million for the same period last year, an increase of 96%. Net sales of Communication Access Terminals, including PBX communication systems, were $56 million in the second quarter of 2004 compared to $21 million for the three months ended June 30, 2003. Net sales of the Network Access Products segment were $9 million in the second quarter of 2004, compared to $12 million in the second quarter last year as a result of weaker sales and service revenue in the Remote Access Server product line.
Gross profit margins increased to 49% of sales for the second quarter of 2004 compared to gross margins of 45% of sales for the same period last year. Gross margins increased mainly as a result of higher margins in the PBX product line. In addition, the Company has continued its efforts to re-engineer certain products in order to reduce costs while enhancing the features of its products. Research and development expenses in the second quarter of 2004 were $6.1 million or 9% of sales compared to $4.3 million or 13% of sales in the second quarter of 2003. Selling, general and administration expenses were $16.8 million or 26% of sales in quarter compared to $4.4 million or 13% of sales in the second quarter of 2003. The increase in operating expenses is a result of the addition of the PBX product line acquired in September 2003.
Amortization of capital and intangible assets was $2.9 million for the second quarter of 2004 compared to $2.1 million in the second quarter last year. Amortization increased by $0.5 million as a result of the PBX product line and $0.3 million as the Company made the decision to amortize certain long life intangible assets that were previously treated as indefinite life assets. Investment income was consistent with the second quarter of 2003 at $0.5 million in the second quarter of 2004. In the second quarter the Company experienced a foreign exchange loss of $0.3 million compared to a foreign exchange loss of $0.8 million in the second quarter last year. Finally, income tax expense decreased to $0.6 million or 9% of pre-tax income for the second quarter of 2004 compared to $0.7 million or 19% of pre-tax income in the second quarter of 2003 as a result of a shift in taxable income to lower-tax jurisdictions.
As a result of its continued profitability and an increased focus on working capital management, Aastra experienced an increase in its cash, cash equivalents and short-term investments to a record balance of approximately $104 million at the end of June 2004. In addition to focusing on the development of internal growth through the research and introduction of new products, the Company will also continue to focus on identifying acquisition opportunities.
About Aastra Technologies Limited
Aastra Technologies Limited (TSX: “AAH”), headquartered in Concord, Ontario, Canada, develops and markets products and systems for accessing communication networks. Aastra’s products include a full range of residential and business telephone terminals, Enterprise Private Branch Exchanges (PBX), network access servers and high quality digital video gateways. Aastra serves the majority of telephone companies and certain cable operators and broadcasters in North America and Europe, with a presence in South America and Asia. For more information on Aastra, visit our Web site at http://www.aastra.com.
Certain information discussed in this press release is forward-looking and is subject to important risks and uncertainties. Forward-looking statements include statements of plans, objectives, strategies and expectations. The words “anticipate”, “believe”, “estimate”, and “expect” and similar expressions are intended to identify forward looking statements. The results or events predicted in these statements may differ materially from actual results or events. Please refer to reports filed by Aastra with securities regulatory authorities in Canada for an identification of factors which could cause results or events to differ from current expectations. Aastra disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information contact:
Allan Brett, CFO
905-760-4160
abrett@aastra.com
|
Press Contact
Aastra Technologies Ltd.
155 Snow Blvd.
Concord, Ontario
Canada
L4K 4N9
press@aastra.com
Media Contact:
press@aastra.com
Contact Investor Relations:
investors@aastra.com
|
