Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, July 20, 2012

Article Excerpt

AASTRA TECHNOLOGIES, $16.56, symbol AAH on Toronto, develops and markets products and systems for accessing communication networks, including the Internet. Its technology is centred around business telephone systems and includes products that integrate land lines and mobile phones. In the three months ended June 30, 2012, the company’s sales fell 15.5%, to $147.1 million from $174.1 million a year earlier. Sales declined in all regions, including Western Europe, where Aastra gets the majority of its revenue. The lower sales caused the company’s earnings to fall sharply, to $1.9 million, or $0.15 a share, from $6.1 million, or $0.43 a share. Cash flow per share fell 43.8%, to $0.45 from $0.80. The company holds cash of $95.5 million, or a high $8.08 a share, and has no long-term debt. The weak European economy has hurt demand for Aastra’s products and forced it to cut its prices. The company needs a sustained economic recovery on the continent to raise its sales and push up its earnings…