Mitel (MITL) saw its loss widen to $209.20 million in the quarter ended compared with $6.30 million a year ago. On the other hand, adjusted net income for the quarter stood at $32 million, or $0.25 a share compared with $36.30 million or $0.29 a share, a year ago. Revenue during the quarter dropped 6.21 percent to $259.80 million from $277 million in the previous year period. Gross margin for the quarter expanded 83 basis points over the previous year period to 54 percent. Total expenses were 95.19 percent of quarterly revenues, up from 94.37 percent for the same period last year. That has resulted in a contraction of 82 basis points in operating margin to 4.81 percent.
Operating income for the quarter was $12.50 million, compared with $15.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $55.60 million compared with $62.20 million in the prior year period. At the same time, adjusted EBITDA margin contracted 105 basis points in the quarter to 21.40 percent from 22.45 percent in the last year period.
“In the fourth quarter, Mitel’s strong operational execution enabled the company to deliver a solid quarter in a highly competitive market driven by technology migration and vendor consolidation,” said Richard McBee, Mitel’s Chief Executive Officer. “Mitel continued to gain share with a particularly strong performance across Europe, and executed well against our Cloud strategy driving a 35% increase in hosted seats and 60% increase in total seats year-over-year.”
Operating cash flow improves significantly
Mitel has generated cash of $99.70 million from operating activities during the year, up 82.60 percent or $45.10 million, when compared with the last year. The company has spent $17.30 million cash to meet investing activities during the year as against cash outgo of $362.90 million in the last year.
The company has spent $69 million cash to carry out financing activities during the year as against cash inflow of $292.80 million in the last year period.
Cash and cash equivalents stood at $97.30 million as on Dec. 31, 2016, up 18.37 percent or $15.10 million from $82.20 million on Dec. 31, 2015.
Working capital declines
Mitel has witnessed a decline in the working capital over the last year. It stood at $157.50 million as at Dec. 31, 2016, down 16.75 percent or $31.70 million from $189.20 million on Dec. 31, 2015. Current ratio was at 1.41 as on Dec. 31, 2016, down from 1.51 on Dec. 31, 2015.
Debt comes down
Mitel has recorded a decline in total debt over the last one year. It stood at $586 million as on Dec. 31, 2016, down 9.19 percent or $59.30 million from $645.30 million on Dec. 31, 2015. Total debt was 37.53 percent of total assets as on Dec. 31, 2016, compared with 34.83 percent on Dec. 31, 2015. Debt to equity ratio was at 1.53 as on Dec. 31, 2016, up from 1.05 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 3.05 for the quarter from 3.18 for the same period last year.
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