Mitel Reports Year-End Financial Results for Fiscal Year 2009

Company posts 6.2 percent revenue growth, demonstrates strong operating performance

 

OTTAWA, Ontario – Sept. 24, 2009 – Mitel®, the trusted provider of unified communications solutions in conjunction with its Annual General Meeting, today announced year-end financial results for the fiscal year ended April 30, 2009 (all figures in U.S. dollars).

Mitel reported revenue in fiscal year 2009 of $735.1 million, an increase of 6.2 percent over the previous fiscal year. This was primarily due to growth in the U.S. market. Operating spending as a percentage of revenue declined by 3.4 percent, driven by cost reduction measures taken midway through fiscal year 2009. Earnings before interest, taxes, depreciation, and amortization (EBITDA*) was $85.3 million which represented an increase of $21 million or 33 percent over the previous fiscal year.

"In fiscal 2009, Mitel made proactive business decisions to ensure that the company remained strong in light of current and forecasted economic conditions," says Don Smith, CEO, Mitel. "Our market share growth and industry position is a testament to the strength and commitment of our team."

In fiscal 2009, Mitel incurred a net loss of $193.7 million. This net loss included a non-cash goodwill write-down of $284.9 million. In accordance with GAAP, goodwill is tested for impairment annually. This non-cash goodwill impairment charge does not affect the company's liquidity, cash flows, or future operations. A $23 million charge for integration and restructuring activities also contributed to the net loss.

"Within a challenging economy Mitel continues to demonstrate its strength in the market with a solid five-year growth trend in both revenues and EBITDA*," says Steve Spooner, CFO, Mitel. "Mitel is well positioned for growth, and remains focused on delivering industry-leading solutions to meet the needs of our customers."