Q4 results - 170% growth in sales and record profits
TORONTO, Feb. 23 /CNW/ - Aastra Technologies Limited - (ASE: ''AAH'') is
pleased to report another record quarterly profit as a result of its seventh
consecutive quarter of record sales. Net sales for the three months ended
December 31, 1998 were $13.3 million, a 172% increase from sales of $4.9
million for the same period in 1997. Net sales for the year ended December 31,
1998 were $37.2 million compared to sales of $13.1 million for the year ended
December 31, 1997, a 184% increase.
During the fourth quarter, the Company experienced higher retail sales as
a result of the addition of new products as well as the strong holiday period
in Canada and the United States. Sales of BELL(R) branded products grew by
more than 55% from the third quarter and by more than 175% compared to the
fourth quarter last year. In addition, sales to telephone companies also
continued to grow, increasing by 170% from the fourth quarter of last year.
As a result of this increase in sales, Aastra recorded a net income of
$650,800 or $0.08 per share for the fourth quarter ended December 31, 1998
compared to a net income of $113,500 or $0.01 per share for the fourth quarter
of 1997. The net income for the year ended December 31, 1998 was $1.3 million
or $0.16 per share compared to a net loss of $380,000 or $0.05 per share for
the year ended December 31, 1997.
The 1998 operating results mark a significant event in Aastra's history.
After a period of working to develop new customers and expand its product
line, the Company has now entered a period of rapid sales growth. Sales for
the fourth quarter of 1998 exceeded the Company's sales for the entire twelve
months of 1997 while sales growth has averaged almost 140% during Aastra's two
years as a public company. With continued growth in each of its key markets,
as well as the introduction of several new products, the Company expects to
see continued revenue and earnings growth into 1999.
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 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
1998 FOURTH QUARTER HIGHLIGHTS
(Canadian Dollars)
Year ended December 31, 1998 1997
-------------------------------------------------------------------------
Net sales $37,172,600 $13,135,300
Operating income (loss) for the year $ 1,681,700 $ (379,900)
Net income (loss) for the year $ 1,343,500 $ (379,900)
Fully diluted earnings (loss) per share
for the year $ 0.16 $ (0.05)
Common shares outstanding - 9,218,101 (1997 - 7,797,111)
Weighted average common shares outstanding - 8,278,419 (1997 - 7,797,111)
Three months ended December 31, 1998 1997
-------------------------------------------------------------------------
Net sales $13,327,400 $ 4,907,400
Operating income for the period $ 989,100 $ 113,500
Net income for the period $ 650,800 $ 113,500
Fully diluted earnings per share
for the period $ 0.08 $ 0.01
>>
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For further information: Mr. Allan Brett, V-P Finance & CFO,
(416) 736-7070, ext. 360, abrett@aastra.com
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