Mitel to sell non-core units as profits increase

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Mitel to sell non-core units as profits increase

Alex Scroxton

Mitel has revealed it is in discussions to sell off its DataNet CommSource business unit in an attempt to streamline its business still further, even as the unified comms software specialist edged back into net profit for the first time since last summer.

DataNet specialises in designing, installing and supporting integrated solutions for customers' complex data and telecommunications LAN, WAN, or Storage Area Networks (SANs), while CommSource distributes peripheral telecommunications products, applications and services developed by third parties that interoperate with its own comms kit.

Mitel did not reveal the identity of any interested buyers, but in a statement CEO Richard McBee said the firm "remain[ed] focused on our core business where demand remains solid for our Mitel solutions and our broad suite of virtualised UC applications software".

With DataNet CommSource now being counted as discontinued activity, Mitel booked continuing sales of $150.5m (£94.8m), up 5% year-on-year, while GAAP net income was $4.4m, reversing a net loss of $4.9m this time last year.

The Canada-based firm said that its net income was largely driven by higher revenues and gross margin percentage, as well as lower special charges and restructuring costs.

By business unit, Communications Solutions grew sales 7% to $127.2m, with improving margins reflecting higher product sales, particularly in the UK. NetSolutions grew 1% to $20.2m.


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