Mitel revenue bump in Q2 sparks stock price surge

Mitel Networks (Nasdaq: MITL) reported increased revenue in its second quarter, but nonetheless booked a net loss, blamed primarily on costs associated with its accelerated restructuring.

The company, which has cut 150 jobs this year, mostly from its U.S. operations, reported revenues of $168.8 million--its highest quarterly total since it became a public company almost two years ago--up 4.8 percent from $161.1 million a year ago.

Mitel posted a net loss of $1.2 million, or 2 cents per share, for the quarter; last year it recorded a profit of $80.9 million, or $1.45 a share.

Despite the loss, the revenue growth prompted a spurt in the share price Friday. It closed the day up 7 percent at $2.74.

"We've been systematically and methodically executing our strategy," said chief executive Richard McBee. "We're also seeing more opportunities out there."

Mitel has battled tough competition, including Cisco (Nasdaq: CSCO) and Avaya, as well as a difficult economy; over the past year, its share price has eroded some 50 percent.

McBee said Mitel expects revenue between $164 million and $170 million in the third quarter.

For more:
- see this Ottawa Citizen article

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