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TORONTO, ONTARIO -- (Marketwire) -- 02/21/13 -- Aastra Technologies Limited - (TSX: AAH) today reported its unaudited financial results for the fourth quarter ended December 31, 2012.

Revenue for the three months ended December 31, 2012 was $175.2 million compared to $199.7 million for the same quarter in 2011, a decrease of approximately 12.3%. Excluding the impact of foreign exchange, revenue dropped by approximately 7.1% from the same period last year.

Revenue for the year ended December 31, 2012 was $606.6 million compared to $693.0 million for 2011. Excluding the impact of foreign exchange, revenue declined by 7.8% in the twelve months ended December 31, 2012 compared to the same period of 2011.

Gross margin increased to 43.8% of revenue in the fourth quarter of 2012 compared to 43.2% of revenue in the same period in 2011. Gross margin for the year ended December 31, 2012 increased to 43.4% compared to 42.3% for the year in 2011.

Research and development ("R&D") expenses in the fourth quarter of 2012 were $13.4 million or 7.7% of revenue, compared to $14.8 million or 7.4% of revenue in the final quarter of 2011. R&D expenses for the year ended December 31, 2012 decreased to $56.8 million or 9.4% of revenue from $63.2 million or 9.1% of revenue.

Selling, general and administrative ("SG&A") expenses were $44.6 million or 25.5% of revenue in the fourth quarter this year compared to $44.4 million or 22.2% of revenue in the fourth quarter of 2011. SG&A expenses for the year ended December 31, 2012 decreased to $171.7 million or 28.3% of revenue compared to $178.5 million or 25.8% of revenue for the year in 2011.

Foreign exchange losses of $1.1 million were recognized in the fourth quarter of 2012, compared to a foreign exchange loss of $1.3 million in the same period last year. Foreign exchange losses were $3.2 million for the year in 2012 compared to $3.5 million for 2011.

Depreciation and amortization expense recorded in operating expenses decreased to $3.9 million in the quarter compared to $4.9 million in the fourth quarter of 2011 as certain intangible assets acquired in previous years were fully amortized at the end of 2011.

The Company recorded net finance income of $1.4 million in the fourth quarter of 2012 compared to $0.7 million in the same period in 2011. Net finance income for the year in 2012 was $4.7 million compared to $3.3 million for the year in 2011. In 2012, the Company recorded a fair value adjustment gain of $1.8 million on a long-term investment compared to a gain of $0.2 million in 2011.

Despite continued profits before income tax, the Company recorded an income tax recovery of $12.9 million in the fourth quarter of 2012 related to a reduction in current income tax liabilities of $17.1 million as a result of tax years becoming statute barred or settlements being made in certain jurisdictions. Comparatively, income tax expense of $3.4 million or 15.8% of pre-tax profit was recognized in the fourth quarter of 2011. Income tax recovery was $11.9 million for the year in 2012 compared to income tax expense of $4.8 million or 15.5% of pre-tax profit for the year in 2011.

As a result of the above, profit increased in the fourth quarter of 2012 to $28.0 million or $2.42 diluted earnings per share compared to $18.2 million or $1.30 diluted earnings per share in the same period in 2011. Profit for the year ended December 31, 2012 was $32.8 million or $2.60 diluted earnings per share compared to $26.2 million or $1.85 diluted earnings per share in 2011. Despite an ongoing difficult period in our business, this represents the Company's 59th consecutive quarter of profitability.