|Aastra Reports Continued Profitability for Second Quarter 2009 Financial Results|
TORONTO, ONTARIO (Marketwire – July 27, 2009) -- Aastra Technologies Limited - (TSX: “AAH”) is pleased to report its unaudited financial results for the second quarter ended June 30, 2009.
Sales for the three months ended June 30, 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 April 30, 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 48.0% 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 13.0% of sales in the same quarter of 2008.
Selling, general and administrative expenses were $56.0 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.
Amortization 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 U.S. dollar during the second quarter this year.
Investment income totaled $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 totaled $80.6 million at the end of June 2009 compared to $66.9 million as at March 31, 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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