Mitel Releases Q4 Results

Digital data

Mitel has announced financial results for the fourth quarter ended December 31, 2015.

“Record-setting revenue from our December quarter results came from solid performance across the entire business. Results were particularly impressive in our strategic growth pillars of Cloud and Mobile,” said Richard McBee, Chief Executive Officer. “In our Cloud business, revenues grew 44% and our investments continued to fuel recurring revenue growth, which increased 24% on year-over-year basis. In Mobile, we reported 73% year-over-year growth and expanded gross margins. These results lay the foundation for Mitel’s ongoing transformation as the market migrates to next generation solutions.”

Recurring cloud seats grew by 31,000 during the quarter and now stands at 401,000 installed. Year-over-year, Mitel’s total cloud seats installed were up 55% to 1,930,000 seats.

“In Q4, our non-GAAP quarterly revenue and adjusted EBITDA were impacted by adverse foreign exchange rates of approximately $23.0 million and $5.3 million respectively, when compared to the fourth quarter of last year. Despite these significant FX headwinds, solid execution drove record revenues and EBITDA and demonstrates how well our team is managing the business,” said Steve Spooner, Mitel’s Chief Financial Officer. “We closed the quarter with $91.6 million in cash, well above our immediate working capital requirements. We used this excess cash to make a $25 million voluntary debt prepayment shortly after the quarter closed.”

During the quarter, Mitel Mobile added 2 new carrier customer wins, bringing the total to 33 and exited the quarter with a total of 6 carrier customers rolling out Mitel Mobile’s VoLTE, VoWiFi or RCS solutions. Since the close of the December 2015 quarter, an additional 3 carriers have initiated network-wide roll-outs, bringing the total number of roll-outs to 9. This includes Smartfren, a leading Indonesian service provider who began to deploy Mitel’s voice and video over LTE solutions.