Mitel Networks Corporation (MITL) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $25.10 million in the quarter, against a net loss of $8.10 million in the last year period. On an adjusted basis, net profit for the quarter was $15 million, when compared with $15.20 million in the last year period.
Revenue during the quarter dropped 3.75 percent to $279.80 million from $290.70 million in the previous year period. Gross margin for the quarter expanded 47 basis points over the previous year period to 53 percent. Operating margin for the quarter period stood at positive 14.80 percent as compared to a negative 3.44 percent for the previous year period.
Operating income for the quarter was $41.40 million, compared with an operating loss of $10 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $34.50 million compared with $34.90 million in the prior year period. At the same time, adjusted EBITDA margin improved 32 basis points in the quarter to 12.33 percent from 12.01 percent in the last year period.
"In Q3 the Mitel team delivered a solid performance reporting GAAP EPS of $0.20 and non-GAAP EPS of $0.12," said Richard McBee, Mitel's chief executive officer. "In a highly competitive and rapidly changing landscape, Mitel continued to win new enterprise accounts in premise and cloud, and earned global industry recognition including the Frost & Sullivan Competitive Strategy Innovation and Leadership Award for cloud services. With a clear migration path for customers, a series of new product offerings now in market, and a strong pipeline, we are well-positioned moving into what is typically our strongest quarter of the year."
For the fourth-quarter, Mitel Networks Corporation projects revenue to be in the range of $310 million to $330 million. Mitel Networks Corporation forecasts adjusted net income to grow in the range of $8 percent to $11 percent.
Operating cash flow improves significantlyMitel Networks Corporation has generated cash of $62.50 million from operating activities during the nine month period, up 71.23 percent or $26 million, when compared with the last year period. The company has spent $11.90 million cash to meet investing activities during the nine month period as against cash outgo of $354.90 million in the last year period.
The company has spent $67.80 million cash to carry out financing activities during the nine month period as against cash inflow of $293.50 million in the last year period.
Cash and cash equivalents stood at $73.30 million as on Sep. 30, 2016, down 11.58 percent or $9.60 million from $82.90 million on Sep. 30, 2015.
Working capital drops significantly
Mitel Networks Corporation has witnessed a decline in the working capital over the last year. It stood at $163.60 million as at Sep. 30, 2016, down 25.97 percent or $57.40 million from $221 million on Sep. 30, 2015. Current ratio was at 1.46 as on Sep. 30, 2016, down from 1.60 on Sep. 30, 2015.
Days sales outstanding went up to 88 days for the quarter compared with 82 days for the same period last year.
Days inventory outstanding has decreased to 33 days for the quarter compared with 74 days for the previous year period.
Debt comes downMitel Networks Corporation has recorded a decline in total debt over the last one year. It stood at $586.60 million as on Sep. 30, 2016, down 9.24 percent or $59.70 million from $646.30 million on Sep. 30, 2015. Total debt was 33.33 percent of total assets as on Sep. 30, 2016, compared with 34.73 percent on Sep. 30, 2015. Debt to equity ratio was at 1.05 as on Sep. 30, 2016, down from 1.08 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
