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Mitel – MITL – Record Gross Margin of 55.6% in the Fourth Quarter

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Mitel (Nasdaq:MITL), a leading provider of unified communications and collaboration (UCC) software solutions, today announced financial results for the fourth quarter and fiscal year ended April 30, 2012. All financial results are in U.S. dollars.

“We continue to deliver results that meet or outperform our quarterly guidance,” said Richard McBee, chief executive officer, Mitel. “Globally we benefited from our technology leadership through the growing adoption of our virtualized solutions, while in North America, we continue to improve execution with our channel focused sales model.”

MITL Fiscal Fourth Quarter 2012 Financial Highlights


  • Revenue from continuing operations for the fourth quarter of fiscal 2012 was $157.6 million, up 4% from $152.2 million for the fourth quarter of fiscal 2011.
  • Gross margins from continuing operations were 55.6%, up from 52.2% in the fourth quarter of fiscal 2011.
  • Adjusted EBITDA from continuing operations for the fourth quarter of fiscal 2012 was $27.3 million, up 43% from the prior year quarter.
  • Non-GAAP net income from continuing operations for the fourth quarter of fiscal 2012 was $17.1 million, or a record $0.30 per share, compared to non-GAAP net income of $9.9 million, or $0.18 per share, in the same period last year. Non-GAAP net income per share from continuing operations was up 67% from the prior year quarter.
  • Net income from continuing operations for the fourth quarter of fiscal 2012 was $49.8 million, or $0.89 per share, diluted, compared to a net income of $3.9 million, or $0.07 per share, diluted, in the same period last year. Net income for the fourth quarter of fiscal year 2012 included the relief of a valuation allowance of approximately $35.0 million primarily relating to Mitel’s deferred tax assets in Canada.
  • Cash and cash equivalents as of April 30, 2012 were $78.7 million.
  • Operating cash flows for the fourth quarter of fiscal 2012 were $3.4 million.

MITL Fiscal 2012 Financial Highlights

  • Revenue from continuing operations for fiscal year 2012 was $611.8 million, compared to revenue of $589.3 million for fiscal 2011.
  • Gross margins from continuing operations were 53.8%, up from 52.2% in fiscal 2011.
  • Adjusted EBITDA from continuing operations for fiscal 2012 was $86.9 million compared to $73.5 million in fiscal 2011.
  • Non-GAAP net income from continuing operations for fiscal 2012 grew 36% to $50.2 million, or $0.89 per share. This compares to non-GAAP net income of $36.8 million, or $0.66 per share for the prior fiscal year.
  • Net income from continuing operations for fiscal 2012 was $49.2 million, or $0.88 per share, diluted, compared to net income of $86.4 million, or $1.54 per share, diluted, for fiscal 2011. Net income for fiscal year 2012 and 2011 was largely driven by the relief of a valuation allowance of approximately $35.0 million and $80.0 million, respectively, primarily relating to Mitel’s deferred tax assets in Canada.

“On any profitability measure, Mitel has demonstrated superior business execution. Expanding gross margins, Adjusted EBITDA and net earnings are evidence of a disciplined, well run business,” said Steve Spooner, chief financial officer, Mitel. “This track record gives us confidence that even in a challenging macro environment, Mitel is well positioned to expand earnings and cash flow generation.”

About Mitel – MITL

Mitel (MITL) is a global provider of business communications and collaboration software and services. Mitel’s Freedom Architecture provides the flexibility and simplicity organizations need to support today’s dynamic work environment. Through a single cloud-ready software stream, Mitel delivers a powerful suite of advanced communications and collaboration capabilities that provides freedom from walled garden architectures and enables organizations to implement best-of-breed solutions on any network; extends the “in-office” experience anywhere, on any device; and offers choice of commercial options to fit business needs.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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