Boston, MA 05/09/2014 (wallstreetpr) – Mitel Networks Corporation (NASDAQ:MITL) is surging in the market after making impressive traction in the first quarter in the cloud business, seen by solid revenue performance. The company added an additional 21,000 recurring cloud revenue seats into its business in the quarter, representing a 73% growth on a year over year basis.
Smooth transition has been experienced in the incorporation of the newly acquired Aastra. The company recognizes it has achieved significant supply chain efficiencies with the new acquisition that has allowed it revise its own synergy target to $75 from $ 50 million.
Business Highlights in Q1
In addition to the acquisition of Aastra, Mitel Networks Corporation (NASDAQ:MITL) acquired Telepo a provider for cloud solutions in Europe, as well as the acquisition of a contact call center recording supplier OAISYS. This essentially broadens the company’s technological capabilities. The acquisition of OAISYS is expected to provide call recording and analytics capabilities that can be used in regulatory compliance as well as quality monitoring purposes.
During the quarter, Mitel Networks Corporation (NASDAQ:MITL) launched MiCloud Enterprise UCaaS for partners seeking to offer communication’s solutions via the cloud. MiCloud has been developed to enable partners offer white label solutions, reliably and affordably over the cloud. The solution connects businesses, employees and customers with communication’s channels designed to boost productivity while also boosting collaboration. MiCloud has been built on Mitel’s software based cloud communications portfolio.
Financial highlights
Total revenue for the quarter was up by 69% to an all-time high of $241.5 million, primarily aided by the acquisition of Aastra that contributed a total of $89.3 million in revenue. Acquisition of Aastra consequently affected the company’s Gross margins which dropped from 53.6% to 56.5%. Debt retirement costs, on the other hand, caused Mitel Net loss to surge to a high of $13.6 million up from $1.7 million.
Adjusted EBITDA for the quarter surged to $35.6 million compared to $23million reported a year ago same period due to EBITDA earnings from the acquisition of Aastra and the legacy Mitel Business. Operating cash flow for the year improved to $26.8 million up from $9.7 million as of March 2013. Cash and cash equivalents as of March stood at $136 million.
