Where was Mitel when we needed them??
KANATA, Ontario--(BUSINESS WIRE)--Oct. 28, 1997--Mitel Corporation (NYSE:MLT) today announced record sales
and earnings of $205.0 million and $23.3 million, or $0.21 per share, respectively, for the second quarter ended September
26, 1997.
In the same quarter last year, sales were $167.5 million and earnings were $16.5 million, or $0.15 per share. Year-to-date
sales and earnings were, respectively, $387.0 million and $41.5 million, or $0.37 per share; up significantly from sales of
$323.4 million and earnings of $27.2 million, or $0.24 per share, recorded during the first half of last year.
Second quarter sales reflected a growth rate of 22 percent over the preceding year. Semiconductor sales of $73 million were
up 44 percent over last year's second quarter mainly as a result of increased shipments of integrated and hybrid circuits.
Business Communications Systems (BCS) sales of $132 million grew by 13 percent from the second quarter of last year chiefly
as a result of higher volumes of SX-2000 and SX-200 systems. At the end of the second quarter, the Company's total order
backlog was $143.5 million, up from $135.1 million at the end of Fiscal 1997.
Second quarter net income of $23.3 million, or $0.21 per share, included the benefit from an accrual for investment tax credits
(ITCs) amounting to $5.0, or $0.05 per share, related to ITCs expected to be realized in the foreseeable future. Last year's
second quarter net income of $16.5 million, or $0.15 per share, included a gain of $3.6 million, or $0.03 per share, related to
the sale of an investment. The earnings improvement from operations reflected the higher sales volumes in both BCS and
Semiconductors and lower expenses as a percentage of sales resulting from recent management actions taken to focus
operations and improve the sales channels.
Gross margin, as a percentage of sales, declined by one percentage point to 50 percent in the second quarter of Fiscal 1998
from the same quarter last year mainly as a result of reduced margins in PBX products, partially offset by a favorable product
mix in semiconductors.
Cash and short-term investments totaled $119.9 million at September 26, 1997 compared with $143.3 million at the end of
Fiscal 1997. Mitel acquired certain assets of Gandalf Technologies Inc. (Gandalf), principally its remote access business, for
cash consideration of $21.6 million in the second quarter of this fiscal year. Cash flow from operations before working capital
changes was $51.8 million during the first half of Fiscal 1998, up from $40.2 million during the same period last year.
Dr. John Millard, Mitel's President and Chief Executive Officer, said: ''The Company continues to enjoy significant sales
growth in both Semiconductors and Business Communications Systems and, in addition, we have recently increased our
presence in the convergence of voice and data by acquiring the remote access products of Gandalf Technologies Inc. Mitel is
well positioned for the future.'' |
