Mitel CEO Rich McBee Outlines Key Changes to
Reiterates Previous Fourth Quarter Financial Guidance
"In evaluating the market opportunity for Mitel, I've spent the last three months speaking with, customers, channel partners, industry analysts, shareholders and our internal team. As a result, I am implementing a strategy anchored by three initiatives in a multi-step approach to grow Mitel's business as a unified communications and collaboration provider.
"First, we will simplify our business. This means creating a flatter organization comprised of two geographical sales organizations and three key business units. This new, more agile organizational structure will enable Mitel to better serve its customers and innovate more quickly, all with the goal of increasing shareholder value."
The following organizational changes are effective immediately:
- Mitel sales will consist of
Americasand International organizations. Philip Keenanis promoted to Executive Vice President of Americassales with responsibility for the U.S. and Canadawhile Graham Bevingtonis promoted to Executive Vice President of International sales with responsibility for Mitel's operations in Europe, Middle Eastand Africa(EMEA), Asia Pacific, and Caribbeanand Latin America(CALA).
- Mitel Communications Solutions: responsible for delivering unified communications and collaboration products and services to businesses.
Ron Wellardis promoted to the role of General Manager and Executive Vice President.
- Mitel NetSolutions: responsible for network and hosted services, mobile services, and broadband connectivity.
Jon Brintonwill continue to lead this business unit as the General Manager.
- Mitel DataNet: responsible for the distribution of third-party products to partners and customers.
Ryan Donovanis promoted to the role of General Manager.
Mitel is also announcing the departure of
McBee continued, "The second initiative will see a re-direction of our R&D investment to products serving the high-growth market of 100 to 2,500 user organizations. We are committed to our Freedom architecture which is being well received by customers around the world looking to capitalize on existing infrastructure investments and create a best-in-class communications solution. We will continue to innovate in this area to provide flexibility to both IT and the end user and to take advantage of the opportunity in the mid market segment.
"Third, we will reorganize our U.S. sales organization to more effectively deliver our products through partners by increasing our investment in our indirect channel, facilitating growth and expansion at local, regional, and national levels. We will also focus our direct sales team on a select group of customers.
"Additionally, we intend to exploit our significant market leadership in voice virtualization. This means continuing to partner with virtualization leader
"In conclusion, we have excellent products and technology. By implementing this strategy, we are aiming to better serve Mitel's customers, improve Mitel's performance, and grow operating results for Mitel."
Mitel reiterated its revenue and non-GAAP financial guidance for the fourth quarter as provided in its prior quarterly earnings press release dated
Conference Call Information
Mitel will host an investor conference call and live webcast this morning at
Some of the statements in this press release, including the information regarding changes to our business strategy and regarding our financial performance targets for the fourth quarter of fiscal 2011, are forward-looking statements within the meaning of applicable U.S. and Canadian securities laws. Statements that include the words "target," "aim," "goal" "outlook," "may," "will," "should," "could," "estimate," "continue," "expect," "intend," "plan," "predict," "potential," "believe," "project," "anticipate" and similar statements of a forward-looking nature, or the negatives of those statements, identify forward-looking statements. In particular, this press release contains forward-looking statements pertaining to, among other matters: our future economic performance: our business strategy; our organizational structure; plans and objectives for future operations; our industry and the growth in the markets in which we compete; and our future research and development plans. These forward-looking statements reflect currently available information or our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. In making these statements, we have made assumptions regarding, among other things:
- no unforeseen changes occurring in the competitive landscape that would affect our industry generally or Mitel in particular;
- the ability to execute our business strategy and organizational restructuring;
- a stable or recovering economic environment; and
- no significant event occurring outside the ordinary course of our business.
Actual events or Mitel's results, performance, financial position, business prospects or achievements could differ materially from those contemplated, expressed or implied by such forward-looking statements as a result of various risks and uncertainties, including, without limitation:
- our ability to achieve or sustain profitability in the future;
- fluctuations in our quarterly and annual revenues and operating results;
- current and ongoing global economic instability;
- intense competition;
- our reliance on channel partners for a significant component of our sales; and
- our ability to successfully implement and achieve our business strategies and organizational restructuring.
Key risks and uncertainties are summarized in filings with the
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