Revenues and EPS Exceed High-End of Guidance
- GAAP revenues of
$307 million, up 11% year-over-year
- GAAP Gross Margins increased 200 basis points to 56.1%
- Adjusted EBITDA of
$46 million, up 43% year-over-year on a proforma basis
"Strong execution across all segments enabled Mitel to deliver outstanding second quarter results that exceeded analyst consensus and beat the high-end of our guidance for non-GAAP revenues and non-GAAP earnings per share. These results, which came in the midst of intense M&A integration planning, speak volumes to the discipline, professionalism and focus of Mitel employees." said
(except per share data)
|Q2 2016||Q2 2015|
|Pro Forma||As Reported|
|Non-GAAP Net Income||$||23.8||$||14.2||$||14.2||$||21.4|
|in millions||Q2 2016||Q2 2015|
|(except per share data)||Pro Forma||As Reported|
|GAAP Net Income (Loss)||$||(10.8||)||$||(37.3||)||$||(37.3||)||$||(11.6||)|
1 - Constant currency estimates for Q2-2015 assumes the same foreign currency exchange rates as in Q2-2016.
2 - For a Reconciliation of Non-GAAP Net Income to Net Income (Loss) , please refer to the tables at the end of this release. See "Non-GAAP Financial Measurements" below.
3 - Adjusted EBITDA is defined as Net Income (Loss), adjusted for items as noted in the table included in this press release "Reconciliation of Net Income (Loss) to Adjusted EBITDA". See "Non-GAAP Financial Measurements" below.
"Disciplined management of the business enabled us to convert a strong quarterly revenue performance into adjusted EBITDA that exceeded consensus and enabled us to further strengthen our capital structure, " said
- Recurring cloud seats grew by 31,000 during the quarter, up from 18,000 seats added during Q1-2016, and now stand at 451,000 seats.
- Expanded our channel into five new countries in
Asiaand Europe. This includes AINEO Networks, a leading provider of international communications systems in Japan, who will expand their iPBX Hosting solution with MiCloud.
- During the quarter, Mitel Mobile added 15 new technology footprint wins, bringing the total to 50. With 19 footprints in roll-out, the company exited the first half having exceeded its full year 2016 target for live technology footprints.
- Strong bookings for the June quarter were up 27% year-over-year.
- Mitel was again acknowledged as a Leader in the global enterprise Gartner Magic Quadrant for Unified Communication, representing the company's second designation as a Gartner Magic Quadrant Leader this year.
- According to the most recent market share information published by
MZA Ltd., Mitel's Enterprise Division continues to take share in key markets, including the Americasand Europe.
Mitel has set the following financial performance guidance for the quarter ending
|Non-GAAP Gross Margin %||54.0% to 56.0%|
|Adjusted EBITDA %||11.0% to 13.0%|
Conference Call Information
Mitel will host an investor conference call and live webcast today at
Non-GAAP Financial Measurements
This press release includes references to non-GAAP financial measures including Adjusted EBITDA, non-GAAP net income, non-GAAP EPS (earning per share), non-GAAP revenues and non-GAAP gross margin. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. We use these non-GAAP financial measures to assist management and investors in understanding our past financial performance and prospects for the future, including changes in our operating results, trends and marketplace performance, exclusive of unusual events or factors which do not directly affect what we consider to be our core operating performance. Non-GAAP measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods. Investors are cautioned that non-GAAP financial measures should not be relied upon as a substitute for financial measures prepared in accordance with generally accepted accounting principles. Please see the reconciliation of non-GAAP financial measures to the most directly comparable
Mitel completed the acquisition of
Forward Looking Statements
Some of the statements in this communication are forward-looking statements (or forward-looking information) within the meaning of applicable
A global market leader in enterprise and mobile communications powering more than 2 billion business connections and 2 billion mobile subscribers every day, Mitel (Nasdaq:MITL) (TSX:MNW) helps businesses and mobile carriers connect, collaborate and provide innovative services to their customers. Our innovation and communications experts serve more than 60 million business users in more than 100 countries, and 130 mobile service providers including 15 of the top 20 mobile carriers in the world. That makes us unique, and the only company able to provide a bridge between enterprise and mobile customers. For more information, go to www.mitel.com and follow us on Twitter @Mitel.
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