Mitel Leverages Strong Cash Position to Voluntarily Pay Down $25 Million Against Existing Credit Facility

January 21, 2016

Management Tightens Guidance for Fourth Quarter 2015

Mitel® (Nasdaq:MITL) (TSX:MNW), a global leader in real-time business, cloud and mobile communications, announced that as a result of its strong cash position, the company will be making a $25 million payment against its existing credit facility. The payment is consistent with the company's commitment to shareholders and the investment community to utilize surplus cash reserves to reduce debt.

"Mitel runs a disciplined business model that benefits from rigorous operational execution and synergies being achieved through our acquisition integration programs," said Steve Spooner, Chief Financial Officer for Mitel. "Our solid execution through the fourth quarter has allowed the business to generate cash in excess of our immediate working capital needs which is enabling us to make a voluntary debt reduction payment of $25 million."

Based on the company's preliminary views to performance for the period ended December 31, 2015, management is today revising its guidance for financial performance by tightening the ranges of: Non-GAAP Revenues; Non-GAAP Gross Margin; Adjusted EBITDA; and Non-GAAP EPS.  Non-GAAP Revenues and non-GAAP Gross Margin % exclude the effect of purchase accounting adjustments.

     
  Original Q4-2015 Guidance Revised Q4-2015 Guidance
Non-GAAP Revenues $315 million to $340 million $330 million to $335 million
Non-GAAP Gross Margin % 53% to 55% 53% to 54%
Adjusted EBITDA % 14% to 17% 17% to 18%
Non-GAAP EPS $0.22 to $0.27 $0.27 to $0.28
     

Mitel's actual fourth quarter and audited full year 2015 results are planned to be issued before the market opens on Thursday, February 25, 2016.  Details of the fourth quarter fiscal 2015 conference call will be confirmed in a separate announcement.

Non-GAAP Financial Measurements

This press release includes references to non-GAAP financial measures including Adjusted EBITDA, non-GAAP net income, non-GAAP operating expenses, 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 reconciliation of our historical non-GAAP financial measures to the most directly comparable U.S. GAAP measure in our earnings release filed on November 5, 2015.

About Mitel

A global market leader in business communications powering more than two billion business connections, Mitel helps businesses and service providers connect, collaborate and provide innovative services to their customers. Our innovation and communications experts serve business users in more than 100 countries. For more information, go to www.mitel.com and follow us on LinkedIn and Twitter @Mitel.

Contact Information

Sandrine Quinton, Mitel

Tel: +33 1 30 96 43 01

Email: [email protected]

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