Mitel losses narrow as impact of restructuring becomes clear

Quarterly net losses at unified comms and collaboration vendor Mitel have narrowed on the back of a major restructuring programme intended to improve operating performance. Although Mitel still went into the red during its first quarter, which closed on 31 July, it lost just $2.8m (£1.72m)as o

Quarterly net losses at unified comms and collaboration vendor Mitel have narrowed on the back of a major restructuring programme intended to improve operating performance.

Although Mitel still went into the red during its first quarter, which closed on 31 July, it lost just $2.8m (£1.72m) as opposed to $6.8m in the year-ago quarter.

Sales, meanwhile, were up 3% from the prior year quarter to $164.1m (£101.3m).

The bulk of the firm's sales came from its core Comms Solutions division, which turned in revenues of just over $124m, up 1%.

Meanwhile, its networks and managed services business, NetSolutions, grew 4% to $20m, but the star performer was its LAN/WAN division DataNet, which upped sales 14% to $19.7m on the back of higher volume sales in the period.

CEO Richard McBee said the firm was pleased with its execution during the quarter.

"We again exceeded our guidance, implemented our new strategy and initiated organisational changes to position Mitel for growth," he said.

McBee also talked up the firm's news from this week's Las Vegas VMworld conference, where it announced the integration of its virtualised UC Advanced client software with VMware View 5, something Mitel claims will "dramatically expand" the power of desktop virtualisation.

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