The transition to a software model continues at Mitel, and its cloud and mobile business lines contributed to a strong first quarter of 2016, CEO Rich McBee said Thursday.
Mitel's Richard McBee. (Supplied photo)
“Our cloud business set a new quarterly record with revenue of $45.8 million, up 32% year-over-year as we continue to gain market traction globally,” he said in a statement. “Year-over-year growth of 55% in mobile was fueled by new footprint wins as well as the transition of existing footprints into network-wide roll-outs."
Overall, Mitel posted revenue of $276.8 million for the three months ending March 31, up three per cent from the same quarter last year.
Adjusted EBITDA of $25.6 million was up 62 per cent from the same period last year. The company posted earnings of six cents per share.
As of March 31, Mitel had $83 million in cash after making $40 million worth of voluntary debt repayments during the quarter.
The quarter saw Mitel announce an agreement to buy Polycom that will create a $2.4 billion revenue company if approved. It also saw the company surpass 2 million cloud seats.
Looking ahead to the second quarter, Mitel is projecting revenues between $285 million and $305 million, gross margins between 53 per cent and 55 per cent, and earnings between 10 and 16 cents per share