TORONTO, ONTARIO--(Marketwired - July 16, 2013) - Aastra Technologies Limited - (TSX:AAH) today reported its unaudited financial results for the second quarter ended June 30, 2013.

Revenue for the three months ended June 30, 2013 was $150.8 million compared to $147.1 million for the same quarter in 2012, an increase of approximately 2.5%. Excluding the impact of foreign exchange, revenue dropped approximately 0.2% from the same period last year. Revenue for the six months ended June 30, 2013 was $284.3 million compared to $294.3 million in the same period last year, a decrease of 3.4%. Excluding foreign exchange, revenue decreased by 5.3% over the same period last year.

Gross margin in the second quarter was down slightly to 43.8% of revenue compared to 44.1% of revenue in the same period in 2012 due mainly to a change in product mix this quarter.

Selling, general and administrative ("SG&A") expenses were $41.8 million or 27.7% of revenue in the second quarter of 2013 compared to $44.5 million or 30.3% of revenue in the second quarter of 2012. SG&A expenses include restructuring expenses of $1.3 million in the second quarter of 2013, compared to $0.8 million in the same quarter of 2012. Excluding restructuring expenses, SG&A expenses would have been $40.5 million or 26.9% of revenue during the second quarter of 2013, compared to $43.7 million or 29.7% of revenue in the same quarter of 2012.

Research and development ("R&D") expenses in the second quarter of 2013 were $17.1 million or 11.3% of revenue, compared to $15.1 million or 10.3% of revenue in the same quarter of 2012. The increase is due to $3.3 million of restructuring expenses incurred in the second quarter of 2013 (2012 - $nil). Excluding restructuring expenses, R&D expenses would have decreased to $13.8 million or 9.1% of revenue. Operating expenses were lower in the second quarter as a result of continued cost control and efficiencies.

Foreign exchange losses of $1.1 million were recognized in the second quarter of 2013, compared to a foreign exchange loss of $0.7 million in the same period last year. Foreign exchange losses on the repatriation of cash from foreign subsidiaries this quarter more than offset the positive movements of the US dollar to the Canadian dollar during the second quarter this year. Amortization expense recorded in operating expenses was $3.7 million in the second quarter of 2013 compared to $3.6 million in the second quarter of 2012.

The Company recorded net finance income of $0.6 million in the second quarter of 2013 compared to $1.0 million in the same period in 2012. Income tax expense of $0.4 million or 13.6% of pre-tax profit compared to $0.4 million or 17.7% of pre-tax profit in the second quarter last year.

As a result of the above, profit increased in the second quarter this year to $2.4 million or $0.21 diluted earnings per share compared to $1.7 million or $0.13 diluted earnings per share in the same period in 2012. Profit for the six months ended June 30, 2013 was $2.5 million or $0.22 diluted earnings per share compared to $3.3 million or $0.25 diluted earnings per share in the first half of 2012.

Included in the income statement this quarter was $4.7 million of restructuring expenses compared to $0.9 million for the same period last year. Excluding restructuring expenses, profit before income taxes would have increased significantly compared to the same period last year for both the six months and three months ended June 30.

Cash and short-term investments totaled $132.5 million at the end of June 2013 compared to $107.4 million at December 31, 2012. During the second quarter of 2013, the Company generated $13.3 million of cash flow in operations. The Company returned $2.3 million in dividends to shareholders during the second quarter. Accounts receivables increased by $7.3 million from $131.4 million at March 31, 2013 as a result of higher revenue.

The Company is pleased to announce that, after a detailed review of its business, the Board of Directors of the Company has approved the payment of a special dividend to its shareholders of $7.20 per share (the "Special Dividend") payable on August 16, 2013 (the "Payment Date") to all shareholders of record on August 6, 2013 (the "Record Date") subject to the "Due Bill" trading requirements mandated by the Toronto Stock Exchange (see below). Contact your financial intermediary should you have any questions regarding how such requirements may affect the trading of the common shares of the Company (the "Common Shares"). The net cash that will be used to pay the Special Dividend on the Payment Date is expected to be $84 million.

Because the amount of the Special Dividend announced today represents a distribution of greater than 25% of the market capitalization of the Company as of the close of markets today, the Toronto Stock Exchange has required that the Common Shares shall trade on a "Due Bill" basis from August 1, 2013 until the close of trading on the Payment Date. This means that sellers of Common Shares during this period (i.e. sellers in trades settled after the Record Date and entered into on or before the Payment Date) shall also sell their entitlement to the Special Dividend to the respective purchasers of such Common Shares. The Common Shares will commence trading on an ex-distribution basis (i.e. without an attached "Due Bill" entitlement to the Special Dividend) from the opening of trading on August 19, 2013 (i.e. the next trading day after the Payment Date).

The Board has determined that the Special Dividend represents an appropriate use of the Company's financial resources after completing its review of the Company as it returns excess cash to shareholders while allowing the Company to maintain adequate financial resources to fund its expected capital and other investments, as well as other potential opportunities for growth.

The Special Dividend declared today has been designated as an "eligible" dividend for the purposes of the Income Tax Act (Canada) and similar provincial legislation. Shareholders of Aastra are entitled to receive dividends only if and when such dividends have been declared and there is no entitlement to any dividends prior to any declaration thereof by Aastra's Board of Directors.

About Aastra Technologies Limited

Aastra Technologies Limited (TSX:AAH) is a global company at the forefront of the Enterprise Communication market. Headquartered in Concord, Ontario, Canada, Aastra develops and delivers innovative and integrated solutions that address the communication needs of businesses small and large around the world. Aastra enables Enterprises to communicate and collaborate more efficiently and effectively by offering customers a full range of open standard IP-based and traditional communications solutions, including terminals, systems, and applications. For additional information on Aastra, visit our website at http://www.aastra.com.

Certain statements made herein may be forward-looking statements within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements with respect to our Board of Directors declaring any future dividends and, if so declared, the amount of such dividends. By their very nature, forward-looking statements involve numerous factors and assumptions, and are subject to inherent risks and uncertainties, both general and specific, which give rise to the possibility that such forward-looking statements will not be achieved.

Shareholders are entitled to receive dividends only if and when such dividends have been declared and there is no entitlement to any dividends prior to any declaration thereof by our Board of Directors. The material factors that will be considered by our Board of Directors in determining whether it is appropriate to declare any future dividends, and the amount of any such dividends, include: our earnings, cash flow, quarterly fluctuations in financial results and financing requirements to fund acquisitions or other business opportunities. Please refer to our filings on the website maintained by the Canadian Securities Administrators at www.sedar.com, including our Annual Information Form and our annual and quarterly Management Discussion and Analyses for other material factors that may be considered by our Board of Directors in determining whether to declare any future dividends and the amount of any such dividends.

We caution readers not to place undue reliance on these forward-looking statements as our actual results may differ materially from our expectations if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Therefore, we cannot provide any assurance that forward-looking statements will materialize. Unless otherwise required pursuant to applicable Canadian securities legislation, we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

The interim consolidated financial statements for the six months and three months ended June 30, 2013 and 2012 have not been reviewed by an auditor.

¹Restated to reflect changes resulting from the retrospective application of the amendments to accounting standard IAS 19 (Revised), Employee Benefits

The interim consolidated financial statements for the six months and three months ended June 30, 2013 and 2012 have not been reviewed by an auditor.

¹Restated to reflect changes resulting from the retrospective application of the amendments to accounting standard IAS 19 (Revised), Employee Benefits

The interim consolidated financial statements for the six months and three months ended June 30, 2013 and 2012 have not been reviewed by an auditor.

¹Restated to reflect changes resulting from the retrospective application of the amendments to accounting standard IAS 19 (Revised), Employee Benefits