Mitel Q2 Results: A Mixed Bag

by Gaurav Kheterpal on December 2, 2011

Mitel’s kept a relatively low-key presence in the recent past. The company started off the year on a positive note as it expanded support for sales and operations in Russia and surrounding areas including Commonwealth of Independent States (CIS), the Baltic States, Georgia, and Turkmenistan.

In April, it beefed up its UC portfolio with the launch of its Unified Communicator Advanced 4.0 desktop client to focus on putting video teleconferencing at the fingertips of the user. The company was back in the limelight in May as it undertook a strategic restructuring on its IPO anniversary.

All in all, it’s been an eventful year with lots of ups and downs. And the same story is reflected in Mitel’s Q2 results – though the company reported its highest level of quarterly revenues since going public, it still ended up with a loss on restructuring and other charges offset an increase in revenues. For academic interest, the company’s results beat expectations.

Mitel reported a net loss of US$1.2 million or two cents a share, a stark contrast from the net income of $80.9 million, or $1.45 per share, in the same period last year. Mitel attributes the net loss to special charges and actions for “improved operating performance”. The company says its revenue for the quarter rose to US$168.8 million from $161.1 million, up 4.8% on a year-over-year basis. Analysts polled by Thomson Reuters expected Mitel to report earnings of $0.17 per share and the company beat that estimate by $0.07 per share.

“Solid execution across the entire company and continued technology leadership allowed us to achieve results greater than our previous guidance across all metrics,” said Richard McBee, chief executive officer, Mitel. “We continue to see the benefits of our previously announced strategic initiatives to simplify our business and streamline our organization. In addition, we are seeing solid demand for our Mitel 5000 platform and our virtualized UC Advanced client software.”

However, there are plenty of positives for Mitel – it recently bagged a $4 million federal phone contract. Last week, Mitel bagged another deal with Educational testing company Measurement Inc. to leverage the former’s technology to replace its communications infrastructure and provide “voice virtualization”.

On a separate note, Mitel’s trademark troubles don’t seem to be ending anytime soon. Though it settled a trademark case against Melbourne telecommunications company Mytel earlier this year, Mitel is back at it again. The company is now suing a chain of mobile phone accessory and repair stores under the names MyTel and HappyTel.  What’s in a name, apparently everything!

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Written by: Gaurav Kheterpal. www.digitcom.ca. Follow TheTelecomBlog.comby:RSS,TwitterFacebook, or YouTube.

{ 3 trackbacks }

The Road Ahead For Mitel — TheTelecomBlog.com
August 14, 2012 at 8:30 am
Mitel Returns To Profitability In 3rd Quarter — TheTelecomBlog.com
August 20, 2012 at 5:46 am
Mitel Q1 Results: That Sinking Feeling! — TheTelecomBlog.com
September 4, 2012 at 8:13 am

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