Aastra Reports Second Quarter Financial Results.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Aastra Technologies Aastra Technologies Limited (TSX: AAH) headquartered in Concord, Ontario, Canada, makes products and systems for accessing communication networks including the Internet. Limited (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AAH aah interj. Used to express pleasure, satisfaction, surprise, or great joy. intr.v. aahed, aah·ing, aahs To exclaim in pleasure, satisfaction, surprise, or great joy: ) today announced its unaudited financial results for the second quarter ended June June: see month. 30, 2005. Net earnings for the three months ended June 30, 2005 were $7.0 million or $0.39 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of compared to $5.8 million or $0.33 diluted earnings per share in the same period last year. The second quarter results for this year include the results of operations from the EADS EADS European Aeronautic Defence and Space Company N.V. EADS Expeditionary Air Defense System (USMC) EADS Extended Air Defense Systems EADS Environmental Assessment Data System EADS Echelons Above Division Study Enterprise Telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. acquisition that was completed on February February: see month. 28th of this year. Excluding the impact of this acquisition, net earnings would have been $9.8 million or $0.55 diluted earnings per share, an increase of 67% over the comparable period last year. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the three months ended June 30, 2005 were $125.8 million compared to net sales of $64.9 million for the same period last year, an increase of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 94%. Net sales from the recently acquired EADS Enterprise Telephony group were approximately $56 million for the second quarter. Excluding the impact of this acquisition, net sales would have been approximately $69.8 million, an increase of 7.5% from the same period last year. Net sales in the Enterprise Communications segment, including sales from the EADS acquisition, were $117.4 million in the second quarter compared to $55.4 million for the three months ended June 30, 2004. Excluding the acquisition, net sales in this segment increased by 10.8% to $61.4 million when compared to the same period last year. Net sales from the Network Access segment were $8.4 million in the second quarter compared to $9.5 million in the same period last year. Sales in this segment were primarily related to sales of the digital video products while revenue from the CVX CVX ChevronTexaco (stock symbol) CVX Comunidad de Vida Cristiana (Christian Life Community) CVX Code Veronica X (game) CVX Critical Viscosity of Xenon CVX Carrier, Experimental product line continued to decline as expected. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. was 44% of sales for the three months ended June 30, 2005 compared to 49% of sales in the same quarter last year. While the gross margin on our existing product lines continued to improve when compared to last year, these stronger margins were offset by the expected lower gross margins experienced on the new product lines. Research and development expenses in the second quarter of 2005 were $12.4 million or 9.9% of sales, compared to $6.1 million or 9.3% of sales in the comparable quarter of 2004. Excluding the impact of the EADS acquisition, research and development expenses would have $6.1 million, consistent with the same period last year. Selling, general and administrative expenses were $29.8 million or 23.7% of sales in the quarter compared to $16.8 million or 25.8% of sales in the second quarter of 2004. Excluding the impact of the EADS acquisition, selling, general and administrative expenses would have declined slightly to $16.7 million when compared to the last period last year. Earnings before income taxes, amortization and interest for the quarter were $13.6 million or 10.8% of sales compared to $9.2 million or 14.1% of sales in the same period of 2004. Amortization of capital and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , excluding tooling, was $4.9 million for the second quarter compared to $2.9 million in the same period last year. Amortization of capital and intangible assets arising from the EADS acquisition was $2.5 million during the second quarter. As a result of the completion of the EADS acquisition in February, the Company's excess cash and short term investment balances were significantly lower during the second quarter and as a result Aastra recorded investment income of $0.1 million in the second quarter compared to $0.5 million for the second quarter last year. Income tax expense was $1.7 million in the second quarter or 19.3% of pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta profits compared to $0.6 million or 8.7% of pre-tax profits in the second quarter last year. While income tax rates have continued to be impacted by profits in lower tax jurisdictions, there was a continued shift towards more of the Company's taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. coming from higher tax jurisdictions in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). during the second
quarter.Cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments totaled approximately $64.5 million at the end of the second quarter compared to a balance of approximately $129.0 million at the end of December December: see month. 2004. During the second quarter, the Company generated approximately $23.2 million of positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , including working capital improvements of $9.0 million primarily related to the EADS acquisition. After the completion of the second quarter, the Company and EADS agreed on certain adjustments that resulted in a EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 6.8 million or approximately $11.1 million reduction in the previously announced purchase price of EUR 68.4 million or approximately $112.0 million. As a result of finalizing the completion adjustment with EADS, Aastra now anticipates that it will be in a position to file its business acquisition report ("BAR") relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the EADS acquisition in September September: see month. 2005. Based on securities legislation, the BAR filing related to this acquisition was due to be filed by the Company on or before May 15, 2005. The delay was primarily attributed to the purchase price adjustment process wherein where·in adv. In what way; how: Wherein have we sinned? conj. 1. In which location; where: the country wherein those people live. 2. certain audit opinions would not be available until a settlement was concluded. Finally, as previously announced, the Company expects to complete its acquisition of DeTeWe's telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. business during the third quarter and will fund this acquisition with its internal cash resources. About Aastra Technologies Limited Aastra Technologies Limited (TSX: "AAH"), headquartered in Concord, Ontario
Certain information discussed in this press release is forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and is subject to important risks and uncertainties. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities 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.
AASTRA TECHNOLOGIES LIMITED
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Stated in thousands of Canadian dollars except per share data
YEAR-TO-DATE 2nd QUARTER
Six months Three months
ended June 30TH ended June 30TH
2005 2004 2005 2004
---------------------------------------------------------------------
Sales $206,705 $128,865 $125,778 $64,901
Cost of goods sold 112,259 66,014 70,414 33,035
---------------------------------------------------------------------
$94,446 $62,851 $55,364 $31,866
Selling, general and administrative 50,442 33,990 29,828 16,769
Research and development 20,292 12,493 12,432 6,065
Amortization 8,147 5,760 4,860 2,865
Foreign exchange loss (gain) (424) 129 (344) 323
Investment Income (605) (1,013) (114) (494)
---------------------------------------------------------------------
Earnings before income taxes $16,594 $11,492 $8,702 $6,338
Income taxes 3,031 1,099 1,680 550
---------------------------------------------------------------------
Net earnings for the period $13,563 $10,393 $7,022 $5,788
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic earnings per share for
the period (note 4) $0.79 $0.61 $0.41 $0.34
---------------------------------------------------------------------
---------------------------------------------------------------------
Diluted earnings per share for
the period (note 4) $0.76 $0.59 $0.39 $0.33
---------------------------------------------------------------------
---------------------------------------------------------------------
(i) Actual common shares outstanding as at June 30, 2005 - 17,309,459
(2004 - 17,086,684)
(ii) Weighted average common shares outstanding for the six months
and three months ended June 30, 2005-17,253,140 and 17,278,308
(2004 - 17,061,180 and 17,074,514)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Stated in thousands of Canadian dollars
YEAR-TO-DATE 2nd QUARTER
Six months Three months
ended June 30TH ended June 30TH
2005 2004 2005 2004
---------------------------------------------------------------------
Cash and cash equivalents provided
by (used for) operations:
Net earnings for the period $13,563 $10,393 $7,022 $5,788
Amortization of capital assets 6,413 5,457 3,913 2,629
Amortization of intangible assets 3,691 2,829 1,980 1,216
Future income taxes 108 (831) 1,161 (344)
Stock compensation expense 282 124 175 62
Pension asset amortization 51 53 26 27
Net change in non-cash operating
working capital 3,180 10,135 8,958 7,725
---------------------------------------------------------------------
27,288 28,160 23,235 17,103
---------------------------------------------------------------------
Cash and cash equivalents provided
by (used in) financing activities:
Bank indebtedness 984 (5,827) 593 (6,879)
Issuance of common shares 48 555 211 228
---------------------------------------------------------------------
1,032 (5,272) 804 (6,651)
---------------------------------------------------------------------
Cash and cash equivalents provided
by (used for) investing
activities:
Short-term investments 64,736 28,973 7,155 (12,660)
Net purchase of capital assets (3,398) (1,015) (2,522) (563)
Business acquisition (note 2) (86,809) - 726 -
---------------------------------------------------------------------
(25,471) 27,958 5,359 (13,223)
---------------------------------------------------------------------
Foreign exchange on cash held
in foreign currency (2,606) 299 (1,541) 292
---------------------------------------------------------------------
Increase (decrease) in cash
and cash equivalents 243 51,145 27,857 (2,479)
Cash and cash equivalents,
beginning of period 64,181 25,879 36,567 79,503
---------------------------------------------------------------------
Cash and cash equivalents,
end of period $64,424 $77,024 $64,424 $77,024
---------------------------------------------------------------------
The interim Consolidated Financial Statements for the six months and
three months ended June 30, 2005 have not been reviewed by an
auditor.
AASTRA TECHNOLOGIES LIMITED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
Stated in thousands of Canadian dollars
JUNE 30TH DECEMBER 31ST JUNE 30TH
2005 2004 2004
---------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $64,424 $64,181 $77,024
Short-term investments 117 64,853 27,339
Accounts receivable 131,749 50,149 50,573
Income taxes receivable - 2,039 -
Net investment in leases 753 756 628
Inventories 56,533 47,229 55,808
Deposits and prepaid expenses 4,246 2,193 2,390
Future income taxes 3,143 1,326 4,313
---------------------------------------------------------------------
$260,965 $232,726 $218,075
Future income taxes 8,842 9,690 5,413
Net investment in leases 1,786 1,793 1,864
Capital assets, net 32,865 16,974 20,146
Investments 68 - -
Accrued pension asset 915 1,046 1,116
Goodwill 6,353 6,353 6,353
Intangible assets 40,723 13,875 20,588
---------------------------------------------------------------------
$352,517 $282,457 $273,555
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Indebtedness 1,258 - 783
Accounts payable and accrued
liabilities 95,863 44,901 50,302
Income taxes payable 9,919 8,972 4,658
Deferred revenue 7,658 2,339 4,951
---------------------------------------------------------------------
$114,698 $56,212 $60,694
Contingent consideration payable 5,770 6,300 6,420
Pension liability 4,204 - -
Future income taxes 1,076 - 1,265
Long term liability 3,446 - -
---------------------------------------------------------------------
129,194 62,512 68,379
Shareholders' equity:
Share capital 103,391 102,407 101,254
Contributed surplus 615 333 209
Cumulative translation adjustments (11,240) 211 524
Retained earnings 130,557 116,994 103,189
---------------------------------------------------------------------
223,323 219,945 205,176
---------------------------------------------------------------------
$352,517 $282,457 $273,555
---------------------------------------------------------------------
---------------------------------------------------------------------
The interim Consolidated Financial Statements for the six months and
three months ended June 30, 2005 have not been reviewed by an
auditor.
AASTRA TECHNOLOGIES LIMITED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)
Stated in thousands of Canadian dollars
---------------------------------------------------------------------
Cumu-
lative
Trans-
Contri- lation
Common Share buted Adjust- Retained
Shares Capital Surplus ment Earnings Total
---------------------------------------------------------------------
Balance,
December
31, 2004 17,206,634 $102,407 $333 $211 $116,994 $219,945
Shares issued
on exercise
of options 41,200 391 - - - 391
Stock option
compensation - - 107 - - 107
Translation of
self sustaining
operations - - - (5,101) - (5,101)
Net income - - - - 6,541 6,541
---------------------------------------------------------------------
Balance,
March
31, 2005 17,247,834 102,798 440 (4,890) 123,535 221,883
---------------------------------------------------------------------
Shares issued
on exercise
of options 61,625 593 - - - 593
Stock option
compensation - - 175 - - 175
Translation
of self
sustaining
operations - - - (6,350) - (6,350)
Net income - - - - 7,022 7,022
---------------------------------------------------------------------
Balance, June
30, 2005 17,309,459 $103,391 $615 $(11,240) $130,557 $223,323
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
Cumu-
lative
Trans-
Contri- lation
Common Share buted Adjust- Retained
Shares Capital Surplus ment Earnings Total
---------------------------------------------------------------------
Balance,
December
31, 2003 17,032,109 $100,699 $85 $1,101 $92,796 $194,681
Shares issued
on exercise
of options 30,500 327 - - - 327
Stock option
compensation - - 62 - - 62
Translation
of self
sustaining
operations - - - (333) - (333)
Net income - - - - 4,605 4,605
---------------------------------------------------------------------
Balance,
March
31, 2004 17,062,609 101,026 147 768 97,401 199,342
---------------------------------------------------------------------
Shares issued
on exercise
of options 24,075 228 - - - 228
Stock option
compensation - - 62 - - 62
Translation
of self
sustaining
operations - - - (244) - (244)
Net income - - - - 5,788 5,788
---------------------------------------------------------------------
Balance, June
30, 2004 17,086,684 $101,254 $209 $524 $103,189 $205,176
---------------------------------------------------------------------
---------------------------------------------------------------------
Aastra Technologies Limited (TSX:AAH) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion