Q1 results - 258% revenue growth and record earnings. Not bad for
what's traditionally their weakest quarter!
TORONTO, May 5 /CNW/ - Aastra Technologies Limited -(ASE: ''AAH'') is
pleased to report that revenue and earnings continued to grow rapidly in the
first quarter of fiscal 1999. These results represent the Company's eighth
consecutive quarter of revenue growth and fourth straight quarter of record
earnings.
Net sales for the three months ended March 31, 1999 were $18,100,100, a
258% increase from sales of $5,048,800 for the same period in 1998. Net sales
for the quarter exceeded management's expectations. Driven mainly by customers
in the United States, sales to telephone companies (''Telcos'') increased
sharply to $14.0 million for the quarter compared to $2.9 million for the same
period last year. Aastra continues to be successful in selling its Caller ID
units to the U.S. Telcos for their network service promotional programs. In
addition, retail sales reached $4.1 million in the first quarter, a 95%
increase from retail sales of $2.1 million in the first quarter of last year.
Consistent with this sales increase, net earnings also improved
significantly. Net earnings were $907,800 or $0.10 per share compared to a net
loss of $123,700 or $0.02 per share last year. The operating results for the
first quarter reflect the full impact of income taxes as the Company has now
utilized the income tax benefits that were carried forward from prior years.
Excluding interest and income taxes, operating income improved to $1,473,200
or 8.1% of sales from an operating loss of $106,600 or 2.1% of sales last
year.
The Company is also pleased to announce that it has recently expanded its
bank credit facility. The Company's operating line was increased to $12.5
million from the $4.0 million operating line that was in place last year. This
increase will allow the Company to effectively leverage its financial
resources as it continues to finance its rapid growth.
Aastra Technologies Limited develops and distributes telecommunications
equipment. Aastra offers a full line of products ranging from Caller ID
adjuncts to full-featured communications systems. Aastra sells to the majority
of the telecommunication companies in North America. In the retail market,
Aastra has the exclusive license to use the ''BELL(R) Equipment-SONECOR''
trademark for telephone sets and its products are distributed to Wal-Mart,
Circuit City, Radio Shack, Future Shop and other mass retailers. The Alberta
Stock Exchange has neither approved nor disapproved of the information
included in this press release.
<<
AASTRA TECHNOLOGIES LIMITED
1999 FIRST QUARTER HIGHLIGHTS
(Canadian Dollars)
Three months ended March 31, 1999 1998
------------------------------------------------------------------------
Net sales for the period $18,100,100 $ 5,048,800
Operating income (loss) for the period $ 1,473,200 $ (106,600)
Net income (loss) for the period $ 907,800 $ (123,700)
Basic earnings (loss) per share for
the period $ 0.10 $ (0.02)
Common shares outstanding - 9,271,101 (1998 - 7,799,611) |
