TORONTO, ONTARIO--(Marketwire - April 18, 2012) - Aastra Technologies Limited - (TSX:AAH) today reported its unaudited financial results for the first quarter ended March 31, 2012.

Revenue for the three months ended March 31, 2012 was $147.3 million compared to $162.7 million for the same quarter in 2011, a decrease of approximately 9.5%. Excluding the impact of foreign exchange, revenue dropped approximately 8.1% from the same period last year. Revenue decreases were experienced across most geographical markets including Western Europe where the majority of the Company's revenue is generated.

Gross margin increased to 43.4% of revenue in the first quarter of 2012 compared to 42.5% of revenue in the same period in 2011 due to the higher margin earned on software applications and service sales. The Company continues to experience an increase in revenue from software applications and service as a percentage of total revenue and this had a positive impact on gross margins realized during the first quarter of 2012.

Research and development expenses in the first quarter of 2012 were $14.9 million or 10.1% of revenue, compared to $17.4 million or 10.7% of revenue in the same quarter of 2011. Selling, general and administrative ("SG&A") expenses were $42.9 million or 29.1% of revenue in the first quarter of 2012 compared to $44.7 million or 27.5% of revenue in the first quarter of 2011. Operating expenses continued to decrease during the first quarter as a result of continued cost control and efficiencies across most markets.

Foreign exchange losses of $0.7 million were recognized in the first quarter of 2012 mainly as a result of a continued weakness in the Euro. Amortization expense recorded in operating expenses decreased to $4.3 million in the first quarter of 2012 compared to $5.5 million in the first quarter of 2011 as certain intangible assets acquired in previous years have become fully amortized.

The Company recorded net finance income of $1.2 million in the first quarter of 2012 compared to $0.6 million in the same period in 2011. Income tax expense of $0.4 million or 16.9% of pre-tax profit compared to 19.7% of pre-tax profit in the first quarter last year.

As a result of the above, profit increased in the first quarter this year to $2.0 million or $0.14 diluted earnings per share compared to $0.2 million or $0.01 diluted earnings per share in the same period in 2011.

Cash and short-term investments totaled $158.2 million at the end of March 2012 compared to $134.1 million at December 31, 2011. During the first quarter of 2012, the Company generated $28.7 million of cash flow in operations. Accounts receivables decreased by $18.0 million as a result of the seasonally weaker sales value. In addition, inventory decreased by an additional $3.6 million and finance lease receivables decreased by $2.6 million. The Company also returned $2.8 million in dividends to shareholders during the first quarter.

As previously announced, subsequent to the close of the first quarter, the Company has completed a substantial issuer bid ("SIB") wherein it repurchased approximately 2.2 million of its own common shares at $23.00 per share for a total cost of $50 million. The SIB was funded from existing cash balances.

Finally, the Company is also pleased to announce that it will pay a dividend to its shareholders of $0.20 per share for this quarter, payable on May 24, 2012 to all shareholders of record on May 3, 2012. The 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 quarterly 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.

AASTRA TECHNOLOGIES LIMITED
CONSOLIDATED STATEMENTS OF PROFIT (UNAUDITED)
Stated in thousands of Canadian dollars, except per share amounts
		1st QUARTER Three months ended March 31st
			2012			2011
Revenue		$	147,270		$	162,706
Cost of sales			83,329			93,606
			63,941			69,100
Expenses:
	Selling, general and administrative		42,928			44,728
	Research and development		14,884			17,399
	Depreciation and amortization		4,283			5,508
	Foreign exchange loss		732			1,882
Results from operating activities			1,114			(417	)
Finance income			(1,293	)		(818	)
Finance expense			46			172
Profit before income taxes			2,361			229
Income taxes			398			45
Profit for the period		$	1,963		$	184
Earnings per share:
	Basic	$	0.14		$	0.01
	Diluted	$	0.14		$	0.01
* Actual common shares outstanding as at March 31, 2012 - 14,033,985 (2011 - 14,074,385)
** Weighted average common shares outstanding for the three months ended March 31, 2012 - 14,032,735 (2011 - 14,064,385)
*** Weighted average fully diluted common shares outstanding for the three months ended March 31, 2012 - 14,129,855 (2011 - 14,139,683)

The interim consolidated financial statements for the three months ended March 31, 2012 and 2011 have not been reviewed by an auditor.

AASTRA TECHNOLOGIES LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Stated in thousands of Canadian dollars
						1st QUARTER Three months ended March 31st
							2012			2011
Cash and cash equivalents provided by (used in):
Operating activities:
	Profit for the period					$	1,963		$	184
	Depreciation of property, plant and equipment						2,477			2,873
	Amortization of intangible assets						2,693			3,639
	Share-based compensation expense						338			457
	Loss on sale of property, plant and equipment						265			-
	Finance income						(1,293	)		(818	)
	Finance expense						46			172
	Income tax expense						398			45
	Change in non-cash pension liabilities						(30	)		629
	Change in non-cash operating working capital						22,089			(12,379	)
	Income taxes paid						(237	)		(4,291	)
							28,709			(9,489	)
Investing activities:
	Interest received						856			718
	Proceeds from disposal of property, plant and equipment						7			-
	Purchase of property, plant and equipment						(825	)		(583	)
	Purchase of intangible assets						(139	)		(20	)
	Business acquisition, net of cash acquired						(2,675	)		-
							(2,776	)		115
Financing activities:
	Dividends paid to shareholders						(2,806	)		(2,814	)
	Proceeds from exercise of share options						38			251
	Receipt of acquired lease receivables						120			187
	Payment of acquired loan payable						(120	)		(187	)
	Repayment of loans payable						(37	)		(74	)
	Finance costs paid						(34	)		(162	)
							(2,839	)		(2,799	)
Foreign exchange on cash held in foreign currency							1,074			567
Increase (decrease) in cash and cash equivalents							24,168			(11,606	)
Cash and cash equivalents, beginning of period							129,933			90,704
Cash and cash equivalents, end of period						$	154,101		$	79,098

The interim consolidated financial statements for the three months ended March 31, 2012 and 2011 have not been reviewed by an auditor.

AASTRA TECHNOLOGIES LIMITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) Stated in thousands of Canadian dollars
			MARCH 31 st 2012			DECEMBER 31st 2011			MARCH 31st 2011
ASSETS
Current assets:
	Cash and cash equivalents	$	154,101		$	129,933		$	79,098
	Short-term investments		4,103			4,202			4,163
	Trade and other receivables		149,113			167,142			171,693
	Current tax assets		6,053			7,348			4,503
	Inventories		77,406			80,963			121,891
	Finance lease receivables		20,618			21,336			19,539
	Acquired lease receivables		369			462			642
	Prepaid expenses and other assets		8,685			7,234			9,001
			420,448			418,620			410,530
Long-term investment			5,836			5,406			5,251
Deferred tax assets			15,039			15,810			16,957
Finance lease receivables			21,571			23,469			26,209
Acquired lease receivables			114			138			534
Property, plant and equipment			29,405			30,953			36,841
Goodwill			47,232			46,323			48,215
Intangible assets			26,528			26,290			36,305
Other assets			500			516			623
		$	566,673		$	567,525		$	581,465
LIABILITIES AND EQUITY
Current liabilities:
	Trade and other payables	$	113,657		$	116,165		$	130,275
	Current tax liabilities		28,759			30,394			25,092
	Deferred income		36,440			36,222			34,890
	Current portion of loans payable		382			512			16,246
	Current portion of provisions		13,294			12,494			14,259
			192,532			195,787			220,762
Pensions			38,074			37,566			25,658
Loans payable			114			138			551
Provisions			2,983			2,965			3,221
Deferred tax liabilities			7,368			7,851			10,420
Other liabilities			880			995			1,132
			241,951			245,302			261,744
Equity:
	Share capital		94,955			94,917			94,904
	Contributed surplus		10,585			10,247			9,349
	Translation reserves		(3,193	)		(6,159	)		(3,443	)
	Retained earnings		222,375			223,218			218,911
			324,722			322,223			319,721
		$	566,673		$	567,525		$	581,465

The interim consolidated financial statements for the three months ended March 31, 2012 and 2011 have not been reviewed by an auditor.

FOR FURTHER INFORMATION PLEASE CONTACT:

Investor Relations
Aastra Technologies Limited
(905) 760-4200
investors@aastra.com