Mitel sees profits slump 80% in Q4, has high hopes for 2012


Mitel sees profits slump 80% in Q4, has high hopes for 2012

Alex Scroxton

Unified communications vendor Mitel has bounced back from net losses in the third quarter of its financial 2011 to post GAAP net income for the fourth quarter of $4.4m (£2.7m), but on a year-over-year basis the figure was still down 80 per cent.

Revenues at the firm grew just 1.7 per cent to $166.6m as the firm worked through a major reorganisation under the leadership of recently-appointed CEO Richard McBee.

Under new leadership Mitel has already announced plans to simplify its business, re-direct its R&D spend into solutions likely to hold greater SME appeal and has rejigged its EMEA management team as well.

CFO Steve Spooner said the firm now had high hopes for the next 12 months.

"The changes to our business strategy and organisation should enable us to align our cost structure, improve our execution and focus our investment in the high growth segments of our target market," he said.

Full-year sales at Mitel rose 0.3 per cent to $649.7m, while full year GAAP net profit was $88.1m, well up on the 2010 figure.


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