The Ottawa telecommunications and services seller posted GAAP net income from continuing operations of $49.8 million, or $0.89 a share, compared with $3.9 million, or seven cents a share, at the same time last year.
But the firm also saw improved sales performance in the fourth quarter: Mitel's quarterly revenues rose four per cent to $157.6 million, up from $152.2 million in 2011.
Earnings before interest, taxes, depreciation and amortization - a non-GAAP measure that smooths out metrics such as the valuation allowance - rose 43 per cent in the first quarter of 2012 to $27.3 million.
On a fiscal basis, the company saw a 75 per cent reduction in fiscal net income compared with last year. Its net income in fiscal 2012 was $49.2 million ($0.88 a share), compared with $86.4 million the year before. Income from both years was driven by a tax valuation related to tax assets, Mitel stated.
Mitel, which has undergone restructuring in the past year, also stated the improved finances – which beat quarterly guidance – are due to "a disciplined, well-run business."
This was due to shifting the company's reseller structure so that the firm was not competing against its own channel partners for business.
Most of the sales force today is new (the average employment tenure is six months) and will become more productive as their length of time with the company increases, said chief financial officer Steve Spooner.
"It was a major change, a risky change, but one that we needed to do," he said in an interview with OBJ. He previously noted the local technology and services seller is seeing its average United States deal increase to US$250,000 this year, from $40,000 last year.
After the company's IPO in 2010 did not gain as much traction as anticipated, Mitel began restructuring the next year under then-newly minted CEO Richard McBee to reduce expenses and streamline the business.
The firm accelerated its restructuring late in 2011 and took a financial hit, but by the beginning of 2012 began to post an income that Mr. Spooner then attributed to the strength of the company's reseller network.
In the first quarter of fiscal 2013, Mitel forecasts:
- Revenue from continuing operations of $150 million to $155 million, which would be a one- to four-per-cent increase over the first quarter of 2012;
- Gross margin from continuing operations of 53.5 to 54.5 per cent;
- Non-GAAP operating expenses as a percentage of revenue from continuing operations between 42.5 and 43.5 percent, which will take into account acquisition-related intangible assets and stock-based compensation.
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