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Mitel Reports Third Quarter Fiscal 2011 Financial Results

Stocks in this article: MITL

OTTAWA, March 1, 2011 (GLOBE NEWSWIRE) -- Mitel (Nasdaq:MITL), a leading provider of unified communications software solutions, today announced its financial results for the third quarter of fiscal 2011 ended January 31, 2011. All financial results are in U.S. dollars.

Financial Highlights

  • Revenue for the third quarter of fiscal 2011 was $162.0 million, compared to $161.1 million for the second quarter of fiscal 2011.
  • Adjusted EBITDA (as defined below) for the third quarter of fiscal 2011 was $17.6 million, compared to $18.2 million for the second quarter of fiscal 2011.
  • Cash and cash equivalents as of January 31, 2011 were $90.7 million.
  • Operating cash flows for the third quarter of fiscal 2011 were $4.8 million.

Net loss for the third quarter of fiscal 2011 was $4.0 million, or $0.08 per share, compared to net income of $33.2 million, or $0.59 per share, in the same period last year (1). The net loss for the third quarter of fiscal 2011 was largely driven by special charges and restructuring costs of $7.4 million.

Non-GAAP net income for the third quarter of fiscal 2011 was $8.6 million, or $0.15 per share, compared to non-GAAP net income of $12.1 million, or $0.21 per share, in the same period last year. Please refer to the GAAP to non-GAAP reconciliation tables in this release.

"In the third quarter we saw progress across many fronts," stated Richard McBee, chief executive officer of Mitel. "Geographically, we had a significant win in the U.S. with the announcement of a $43 million, five-year contract with the New York City Department of Education. We saw strength in Asia Pacific and Central and Latin America. We also continue to see solid demand for our virtual software applications."

Business Highlights

  • New customer highlights:
  • New York City Department of Education: a five-year $43 million contract awarded for communication systems and services
  • Queensland Government Department of Education and Training in Australia, which oversees over 1,000 schools
  • DCI of New York State, a Mitel authorized PARTNER, who is implementing a hosted solution for the hospitality market based on Mitel's cloud-based software technology
  • Canadian Blood Services, a Canadian not-for-profit organization, implementing MCD and virtual UC applications.
  • ONG&ONG, an architecture, design and engineering company based in Singapore
  • the Vrije Universiteit (or VU - Free University) in Amsterdam for the Academic Centre for Dentistry with 1,400 users on a Mitel virtualized communications solution.
  • Announced Datacenter Accreditation for Cloud-Based Unified Communications Services
  • Partners announced: Artisan, Host.net and Hosting.com
  • Announced New Technical Accreditation Program for Channel Partners
  • Partners announced: TwinState (Virtualized Voice Specialist), and Trans-West Network Solutions (Virtualized Voice Specialist, Mitel Contact Center Specialist and Mitel Unified Communications Specialist).

"We continued to take actions to reduce our cost structure going forward and improve our operational efficiencies," stated Steve Spooner, chief financial officer, Mitel. "In addition, today we elected to prepay $25 million of our outstanding first lien debt, which provides us with the opportunity to utilize our surplus cash to lower our interest payments."

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