Record revenues and earnings.
Mitel Corporation Releases Fiscal 2001 First Quarter
Results
OTTAWA, CANADA--
* Adjusted EPS above expectations
* Record Semiconductor revenue, up 47%
* Strong order backlog
Mitel Corporation (TSE:MLT, NYSE:MLT) today announced first
quarter results for the Fiscal 2001 quarterly period ended June
30, 2000.
"Mitel's performance for the first quarter was a good start to the
new fiscal year," said Kirk K. Mandy, President and Chief
Executive Officer, Mitel Corporation. "Our Semiconductor division
continues to gain momentum in multiple high growth areas while the
Systems business was adversely influenced by lingering Y2K
effects."
Revenue for the quarter reached $328.8 million, up 6% from $311.2
million for the same period last year.
Adjusted Net Income (+) for the quarter reached $25.3 million or
$0.21 per share, up from $0.10 per share in the first quarter of
Fiscal 2000. The significant improvement from a year ago is due to
continuing growth of the company's Semiconductor business in the
areas of broadband networking, subscriber access and optical
components.
Order backlog was strong at $323 million, up $43 million from the
end of Fiscal 2000.
In the first quarter, Mitel recorded net income of $21.5 million,
or $0.18 per share, after the amortization of acquired intangibles
of $3.2 million and debt issue costs of $0.6 million. This
compares to a loss of $4.6 million, equivalent to $0.05 per share,
for the same period in Fiscal 2000.
For the quarter, cash flow from operations before working capital
changes was $52.2 million, up by 40% from $37.3 million in the
previous year as a result of increased earnings in Semiconductor.
Review of Operations
Mitel Semiconductor
Mitel Semiconductor sales for the first quarter of Fiscal 2001
reached a record $183.8 million, a 47% increase over the $125.2
million achieved for the same period last year.
For the quarter, operating income was $44.5 million, up sharply
from the $5.1 million for same period in Fiscal 2000. This
improvement resulted from higher sales and improved manufacturing
utilization. Semiconductor order backlog also continued to
increase and reached $288 million for the quarter, up $35 million
over the previous quarter.
"Our Semiconductor business is gaining considerable strength as a
result of a sharper focus on high growth opportunities, especially
in broadband networking, optical components, and subscriber
access," said Mandy.
"We expect these businesses to continue to show strength. In
addition, we are looking forward to the technological and business
development contributions of our planned acquisition of Vertex
Networks which will further position Mitel as a unique supplier
offering system-wide, Internet Protocol-based, Quality of Service
(QoS) for converging voice and data networks."
Mitel Communications Systems
Mitel Communications Systems recorded first quarter revenue of
$145 million as compared to $186 million for the first quarter of
Fiscal 2000.
For the quarter, the division recorded an operating loss of $10.5
million arising from the lower levels of sales and manufacturing
activity. For the same period last year, operating income was
$13.2 million.
"As the industry prepares itself for large scale adoption of
communications solutions based on Internet technology, Mitel is
ready with a portfolio of Internet Protocol-based products and R&D
investments focused on new opportunities in this emerging space,"
said Mandy "Additionally, it appears that the general market
softness experienced over the last quarter is improving.
Accordingly, we expect sales to increase over the coming
quarters."
Margins and Expenses
Gross margin for the quarter improved from 46% of revenue last
year to 49%, reflecting higher shipments and improved production
efficiencies in Semiconductor.
Selling and administrative expenses represented 27% of sales, the
same level as the first quarter of Fiscal 2000.
Research and development expenses remained at 12% of sales, also
the same level as the first quarter of last year. For Fiscal 2001,
first quarter R&D expenses were $39.7 million. R&D investment
continues to reflect Mitel's commitment to emerging opportunities
related to the Internet and broadband interconnection in the areas
of wired, wireless, and optoelectronic networking.
Happy investing,
andras |
