Mitel reverses losses after IPO

Despite a harrowingdebut on the stock market, Mitel has posted a profit for the fourth quarter and fiscal year ended 30 April, in its first set of financial results released since its recent IPO. During the fourth quarter, the Canadian unified comms vendor made total sales of $163.9m (£108.7m)

Despite a harrowing debut on the stock market, Mitel has posted a profit for the fourth quarter and fiscal year ended 30 April, in its first set of financial results released since its recent IPO.

During the fourth quarter, the Canadian unified comms vendor made total sales of $163.9m (£108.7m), down slightly year-on-year, while quarterly GAAP net profits rose to $22m, reversing losses of $252m this time last year.

Full year sales hit $647.9m, down 11.2% year-on-year, and a fiscal 2009 GAAP net loss of $193m was also turned around.

The news may begin assuage the doubts of many industry-watchers who had doubted Mitel's ability to turn a profit. Aside from 2007, when it bought rival Inter-Tel, the firm has never once made an annual profit.

In a statement Mitel CFO Steve Spooner said the IPO had "improved our financial flexibility and strengthened the Mitel brand name."

"The contineud adoption of our UCC applications drove gross margin improvements throughout fiscal 2010. We remain focused on improving our operational efficiency and we achieved non-GAAP opeating margins of 13.2% and adjusted EBITDA margins of 15.4% in the fourth quarter," he added.

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