Mitel ploughs profits into debt repayments

Cloud and software unified comms vendor Mitel makes major long-term debt repayment following solid quarter

After a strong quarterly performance, cloud and software-based unified communications specialist Mitel has ploughed $20m of its own money into a voluntary debt repayment.

The Canadian firm saw record gross margins of 58.2% during the second quarter of its fiscal 2014, which closed on 31 October, as a result of solid expense control.

Year-on-year sales were flat at $144.9m, although up sequentially, and net profit of $5.4m reversed a year-ago net loss of nearly $2m. Adjusted EBITDA was $24.8m, cash and cash equivalents were $70.5m and operating cashflows for the period were $16m.

“Cloud and contact centre, two strategic areas where we are investing to support growth, continue to gain traction,” said CEO Richard McBee.

“Strong customer acceptance of our solutions proved to offset the temporary impacts we experienced during the last month of the quarter as a result of the US government shutdown.”

The firm has been keen to establish itself on a firmer footing and last month merged with rival Aastra in a move designed to build both scope and scale, and position the combined entity as a billion dollar UC firm that could assume a market leading position in Western Europe.

The third quarter will likely be the last reported before Aastra results are added into the mix.

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