Aastra Reports Strong Year End 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 fourth quarter and year ended December December: see month. 31, 2004. Net earnings for the three months ended December 31, 2004 were $10.2 million or $0.58 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 $7.1 million or $0.41 diluted earnings per share in the same period last year. The fourth quarter results in 2004 included a foreign exchange gain of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.6 million as a result of the decision by management to repatriate repatriate To bring home assets that are currently held in a foreign country. Domestic corporations are frequently taxed on the profits that they repatriate, a factor inducing the firms to leave overseas the profits earned there. the profits of certain foreign operations. Excluding this gain, the net earnings in the fourth quarter would have been $8.6 million or $0.49 diluted earnings per share. The remainder of the improvement in the fourth quarter 2004 profits was a result of the strong operating results of the PBX (Private Branch eXchange) An inhouse telephone switching system that interconnects telephone extensions to each other as well as to the outside telephone network (PSTN). product line as the full effect of previous restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). efforts was realized during the quarter. Net earnings for the year ended December 31, 2004 were $24.2 million or $1.38 diluted earnings per share compared to $21.0 million or $1.20 diluted earnings per share for 2003. 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 December 31, 2004 were $66.7 million compared to net sales of $73.5 million for the same period last year, a decrease of approximately 9%. Net sales from the Enterprise Communications segment, formerly referred to as the Communication Access Terminals segment, were $58.2 million in the fourth quarter compared to $61.5 million for the three months ended December 31, 2003. Sales in this segment included approximately $42.0 million in sales of PBX communication systems compared to $40.0 million in sales of this product line in the same period last year. Net sales from the Network Communication Products segment were $8.5 million in the fourth quarter compared to $12.0 million in the same period last year. Net sales for the year ended December 31, 2004 were $256 million compared to net sales of $192 million for the year ended December 31, 2003, an increase of approximately 33%. 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 51% of sales for the three months ended December 31, 2004 compared to gross margin of 44% of sales for the same period last year. This increase was a result of higher gross margins in most product lines across the Enterprise Communications segment but primarily the PBX product line. Research and development expenses in the fourth quarter of 2004 were $4.9 million or 7% of sales, compared to $7.0 million or 9% of sales in the comparable quarter of 2003. Selling, general and administrative expenses were $16.8 million or 25% of sales in the fourth quarter of 2004 compared to $16.3 million or 22% in the fourth quarter of 2003. The Company recorded a net foreign exchange gain of $1.4 million in the fourth quarter. This includes the gain of $1.6 million previously mentioned, as funds from certain self sustaining foreign operations were repatriated back to Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of in order to assist in funding 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. If these foreign profits were not repatriated, this foreign exchange gain would have been recorded as a Cumulative Translation Adjustment in the equity section of the Balance Sheet similar to the accounting treatment in previous quarters and would not have had an impact on the Income Statement. Earnings before income taxes, amortization and interest for the fourth quarter ended December 31, 2004 were $14 million or 21% of sales compared to $10.0 million or 14% of sales in the same period of 2003. 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 $2.7 million for the fourth quarter of 2004 compared to $3.2 million in the same period last year as certain assets become fully amortized and not replaced. Investment income was $0.6 million during the fourth quarter compared to $1.1 million in 2003 as the Company made the decision during 2004 to significantly reduce the average holding period of its investments in preparation for the EADS Enterprise Telephony acquisition. Income tax expense increased to $1.7 million or 15% of pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income compared to $0.8 million or 10% of pre-tax income in the fourth quarter of 2003. While income tax rates have continued to be impacted by profits in lower tax jurisdictions, there was a shift in the source 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. during the fourth quarter towards higher taxation countries 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). . For the year, income tax expense
was $3.2 million or 12% of pre-tax income compared to $3.3 million or
14% in 2003.
As a result of its continued profitability, Aastra experienced an increase in cash, cash equivalents 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 to approximately $129 million at the end of 2004 from approximately $119 million at the end of September September: see month. 2004 and $82 million at the end of 2003. During the fourth quarter, the Company generated $10 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 . For the year, the cash generated from operations was an impressive $54 million in 2004 compared to $24 million in 2003 as a result of continued profitability and strong working capital management. Finally, as previously announced earlier this week, the Company is pleased to report that it is has closed its acquisition of the EADS Enterprise Telephony business effective February February: see month. 28, 2005. This business includes a unit in Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , with a significant presence in France, that is focused on VoIP enabled communication systems for medium to large enterprises as well as a separate unit focused on communications solutions for the very large call center and campus market in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . This acquisition included a cash payment of approximately Euro 63.4 million or $104 million on closing and includes potential deferred payments of up to Euro 5 million or $8 million. In addition, the acquisition price is subject to certain price adjustments which could decrease the purchase price based on the final value of the net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. transferred to Aastra on closing. 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, including the "Risk Factors" section of Aastra's Prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. dated December 2, 2002, 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 4th QUARTER
Year-ended Three months
Ended ended
December 31st December 31st
2004 2003 2004 2003
---------------------------------------------------------------------
Sales $ 256,119 $ 191,662 $ 66,717 $ 73,466
Cost of goods sold 130,894 105,670 32,422 41,018
---------------------------------------------------------------------
$ 125,225 $ 85,992 $ 34,295 $ 32,448
Selling, general and
administrative 66,526 34,231 16,823 16,294
Research and development 23,599 20,599 4,945 6,979
Amortization 11,320 9,551 2,698 3,189
Foreign exchange loss (gain) (1,229) 928 (1,431) (823)
Investment Income (2,364) (3,560) (616) (1,081)
---------------------------------------------------------------------
Earnings before income
taxes $ 27,373 $ 24,243 $ 11,876 $ 7,890
Income taxes 3,175 3,287 1,724 767
---------------------------------------------------------------------
Net earnings for the period $ 24,198 $ 20,956 $ 10,152 $ 7,123
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic earnings per share
for the period (note 4) $ 1.42 $ 1.24 $ 0.59 $ 0.42
---------------------------------------------------------------------
---------------------------------------------------------------------
Diluted earnings per
share for the period
(note 4) $ 1.38 $ 1.20 $ 0.58 $ 0.41
---------------------------------------------------------------------
---------------------------------------------------------------------
(a) Actual common shares outstanding as at December 31, 2004 -
17,206,634 (2003 - 17,032,109)
(b) YTD Weighted average common shares outstanding as at December 31,
2004 -17,093,740 (2003 - 16,941,316)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Stated in thousands of Canadian dollars
YEAR-TO-DATE 4th QUARTER
Year-ended Three months
Ended ended
December 31st December 31st
2004 2003 2004 2003
---------------------------------------------------------------------
Cash and cash equivalents
provided by (used for)
operations:
Net earnings for the
period $ 24,198 $ 20,956 $ 10,152 $ 7,123
Amortization of capital
assets 9,856 8,037 1,702 3,454
Amortization of
intangible assets 6,206 4,149 1,326 1,730
Future income taxes 1,611 2,081 279 665
Stock compensation expense 248 85 124 85
Pension asset amortization 93 163 (17) 163
Unrealized net foreign
exchange gains (141) - 506 -
Net change in non-cash
working capital 12,406 (11,917) (4,048) 4,618
---------------------------------------------------------------------
54,477 23,554 10,024 17,838
---------------------------------------------------------------------
Cash and cash equivalents
provided by (used in)
financing activities:
Issuance of common shares 1,708 1,455 970 672
Bank indebtedness (6,610) (2,904) (16) (2,538)
---------------------------------------------------------------------
(4,902) (1,449) 954 (1,866)
---------------------------------------------------------------------
Cash and cash equivalents
provided by (used for)
investing activities:
Maturity of short-term
investments 70,280 49,660 26,421 2,692
Purchase of short-term
investments (78,821) (93,843) (29,932) (31,214)
Net purchase of capital
assets (2,242) (3,919) (830) (3,753)
Business acquisition - (26,225) - 8,110
---------------------------------------------------------------------
(10,783) (74,327) (4,341) (24,165)
---------------------------------------------------------------------
Foreign exchange on cash
held in foreign currency (490) (86) (48) 1,488
---------------------------------------------------------------------
Increase (decrease) in
cash and cash equivalents 38,302 (52,308) 6,589 (6,705)
Cash and cash equivalents,
beginning of period 25,879 78,187 57,592 32,584
---------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 64,181 $ 25,879 $ 64,181 $ 25,879
---------------------------------------------------------------------
---------------------------------------------------------------------
AASTRA TECHNOLOGIES LIMITED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
Stated in thousands of Canadian dollars
DECEMBER 31st DECEMBER 31st
2004 2003
--------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 64,181 $ 25,879
Short-term investments 64,853 56,312
Accounts receivable 50,149 69,084
Income taxes receivable 2,039 539
Net investment in leases 756 336
Inventories 47,229 52,783
Deposits and prepaid expenses 2,193 1,785
Future income taxes 1,326 4,801
--------------------------------------------------------------------
$ 232,726 $ 211,519
Future income taxes 9,690 4,491
Net investment in leases 1,793 740
Capital assets, net 16,974 24,588
Accrued pension asset 1,046 1,139
Goodwill 6,353 6,353
Intangible assets 13,875 23,417
--------------------------------------------------------------------
$ 282,457 $ 272,247
--------------------------------------------------------------------
--------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Indebtedness - 6,610
Accounts payable and accrued liabilities 44,901 55,194
Income taxes payable 8,972 5,483
Deferred revenue 2,339 4,039
--------------------------------------------------------------------
$ 56,212 $ 71,326
Contingent consideration payable 6,300 6,240
--------------------------------------------------------------------
62,512 77,566
Shareholders' equity:
Share capital 102,407 100,699
Contributed surplus 333 85
Cumulative foreign currency
translation adjustment 211 1,101
Retained earnings 116,994 92,796
--------------------------------------------------------------------
219,945 194,681
--------------------------------------------------------------------
$ 282,457 $ 272,247
--------------------------------------------------------------------
--------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (UNAUDITED)
YEAR-TO-DATE 4th QUARTER
Year-ended Three months
ended December 31st ended December 31st
2004 2003 2004 2003
---------------------------------------------------------------------
Retained earnings,
beginning of period $ 92,796 $ 71,840 $ 106,842 $ 85,673
Net earnings 24,198 20,956 10,152 7,123
---------------------------------------------------------------------
Retained earnings,
end of period $ 116,994 $ 92,796 $ 116,994 $ 92,796
---------------------------------------------------------------------
---------------------------------------------------------------------
Aastra Technologies Limited (TSX:AAH) |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion