Mitel Networks Corporation (MITL) saw its loss narrow to $21.10 million in the quarter ended compared with $22.40 million, a year ago. On an adjusted basis, net loss for the quarter was $1.80 million, when compared with net profit $7.30 million in the last year period.
Revenue during the quarter dropped 4.25 percent to $223.10 million from $233 million in the previous year period. Gross margin for the quarter expanded 25 basis points over the previous year period to 53.38 percent. Operating margin for the quarter stood at negative 2.91 percent as compared to a negative 3.61 percent for the previous year period.
Operating loss for the quarter was $6.50 million, compared with an operating loss of $8.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $8.80 million compared with $25.60 million in the prior year period. At the same time, adjusted EBITDA margin contracted 704 basis points in the quarter to 3.94 percent from 10.99 percent in the last year period.
"During the quarter, Mitel took several major steps to fundamentally strengthen our capital structure and operating model," commented Steve Spooner, chief financial officer. "We paid down $364 million in debt, secured attractive new credit facilities at significantly lower interest rates, initiated a stock buyback program, and initiated cost reduction actions to position the company to achieve its long-term financial targets."
Operating cash flow drops significantlyMitel Networks Corporation has generated cash of $10.70 million from operating activities during the quarter, down 70.92 percent or $ 26.10 million, when compared with the last year period. Cash flow from investing activities was $316 million for the quarter as against cash outgo of $5 million in the last year period.
The company has spent $372.40 million cash to carry out financing activities during the quarter as against cash outgo of $41 million in the last year period.
Cash and cash equivalents stood at $56.50 million as on Mar. 31, 2017, down 32.25 percent or $26.90 million from $83.40 million on Mar. 31, 2016.
Working capital drops significantly
Mitel Networks Corporation has witnessed a decline in the working capital over the last year. It stood at $108.30 million as at Mar. 31, 2017, down 27.02 percent or $40.10 million from $148.40 million on Mar. 31, 2016. Current ratio was at 1.38 as on Mar. 31, 2017, down from 1.41 on Mar. 31, 2016.
Days sales outstanding went down to 60 days for the quarter compared with 105 days for the same period last year.
Days inventory outstanding has decreased to 34 days for the quarter compared with 76 days for the previous year period.
Debt comes down significantlyMitel Networks Corporation has recorded a decline in total debt over the last one year. It stood at $12.40 million as on Mar. 31, 2017, down 97.96 percent or $596 million from $608.40 million on Mar. 31, 2016. Total debt was 1.14 percent of total assets as on Mar. 31, 2017, compared with 33.91 percent on Mar. 31, 2016. Debt to equity ratio was at 0.03 as on Mar. 31, 2017, down from 1.04 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
