Restructuring costs drive Mitel to third quarter loss

Unified communications vendor Mitel hasposted aGAAPnet loss of $4m, compared to net income of $33.2m this time last year, after being hit by restructuring costs of $7.4m. Non-GAAP income was $8.6m. Third quarter revenues at the vendor, which listed last spring, were down 0.1% to $162m (£99.4m)

Unified communications vendor Mitel has posted a GAAP net loss of $4m, compared to net income of $33.2m this time last year, after being hit by restructuring costs of $7.4m. Non-GAAP income was $8.6m.

Third quarter revenues at the vendor, which listed last spring, were down 0.1% to $162m (£99.4m), but up 0.5% sequentially.

In spite of its broadly flat performance, newly-crowned CEO Richard McBee said the firm was still making progress on many fronts, with strength in APAC and the US noted, although he did not touch on EMEA.

CFO Steve Spooner added: "We continued to take actions to reduce our cost-structure going forward and improve our operational efficiencies.

"In addition, today we elected to prepay $25m of our outstanding first lien debt, which provides us with the opportunity to utilise surplus cash to lower our interest payments," he added.

The company is targeting sales of between $160m and $165m over the three months to the end of April.

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