TORONTO (Reuters) - Business communications firm Aastra Technologies AAH.TO posted a lower quarterly profit on Monday, hurt by a restructuring in Europe and the impact of a recent acquisition.
Aastra said it earned C$2.1 million, or 13 Canadian cents a share, in the three months ended June 30. That was down from a profit of C$8.2 million, or 50 Canadian cents a share, a year earlier.
The Concord, Ontario-based company said its restructuring effort in Europe, where sales have been weak, as well as its April purchase of Ericsson’s ERIC.O enterprise communications business hurt its bottom line.
Aastra said quarterly sales were C$205.8 million, compared with C$157 million a year earlier, largely because of the Ericsson deal. Excluding the acquisition, revenue would have fallen 4 percent as sales of existing products were lower in each of the company’s biggest European markets, it said.
Gross margin stayed flat at 42.5 percent of sales, Aastra said.
It released its results after markets closed. During the day, its shares rose 15 Canadian cents to close at C$19.43 on the Toronto Stock Exchange.
Reporting by Wojtek Dabrowski; editing by Rob Wilson