May 14, 2014
Mitel Announces 2014 Q1 Financial Earnings
By
Casey Houser
Contributing Writer
Late last week, business communications company Mitel (News - Alert) announced its most recent financial earnings and showed substantial gains compared to the previous year. Overall, the company appears to be doing well and has reported growth after acquiring communications network product manufacturer Aastra (News - Alert) Technologies earlier this year.
The most telling sign of the company's recent success comes from the chart displayed in its announcement. Considering the addition of three months of growth from Mitel and two months from Aastra, the chart shows that Mitel as a whole earned $241.5 million in the first quarter of this year. Compared to the first quarter of last year, that is a gain of approximately 69 percent. The company attributes this success, in large part, to its acquisition of Aastra.
When combined revenue and loss for the quarter is considered, Mitel as a whole increased its revenue from $273.5 million to $277.4 million – an increase of approximately 1.4 percent. Richard McBee, CEO of Mitel, commented on the financial situation of his company.
"I am extremely pleased with the progress Mitel made in the first quarter, particularly the solid overall revenue performance,” McBee said. “Our first quarter results reflect the traction we are gaining in our cloud business, with over 21,000 recurring cloud revenue seats being added in the quarter, representing 73 percent growth year-over-year, bringing our cloud recurring seats total to 142,600. These are both strong indicators that our employees, customers and channel partners see value and strength from the combination with Aastra."
He goes on to say that the company has found supply chain inefficiencies within its operation. It has reportedly fixed those problems and has revised its synergy target accordingly from $50 million to $75 million – a target to be met within the next two and a half years.
Mitel was reported to have bought all the outstanding Aastra common shares this past December for $6.52 a share plus 3.6 Mitel common shares for each Aastra common share. The move was said to have been done to allow each company to greater reap the benefits of the business communications market which is worth around $18 billion globally.
Edited by Alisen Downey