Mitel announces year end results.KANATA, Ontario--(BUSINESS WIRE)--May 16, 1996--MITEL CORPORATION (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME, NYSE NYSE See: New York Stock Exchange :MLT (MultiLink Trunking) See port aggregation. ) Mitel Corporation reported today record net income of $51.0 million, or $0.45 per share, for its fiscal year ended March 29, 1996. This compares to $31.8 million, or $0.27 per share, for the previous year. The Company attributed the sharp earnings increase to strong worldwide demand for Mitel's semiconductor products, higher margins on business communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. sales and lower selling and administrative expenses. Of particular note in Fiscal 1996 was the acquisition by Mitel of ABB n. 1. Among weavers, yarn for the warp. Hence, Noun 1. ABB - an urban hit squad and guerrilla group of the Communist Party in the Philippines; formed in the 1980s Hafo AB on March 29, 1996 for $44 million in cash. ABB Hafo AB manufactures and markets semiconductor and optoelectronic Refers to devices that function due to the interaction of light and electronics. For example, an electronic signal is the input to a laser diode, which generates light pulses that are transmitted through an optical fiber. products and had sales in Fiscal 1996 of $53 million. Revenue totalled $576.4 million, representing a decline of 2 percent from sales of $589.4 million in the preceding year chiefly as a result of lower sales of business communications systems in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . In the fourth quarter of Fiscal 1996, net income was also a record at $15.2 million and compared with income of $14.4 million in the corresponding quarter a year ago. Revenue aggregated $165.0 million in the final quarter compared with $164.5 in the same quarter last year. Gross margin improved significantly from 45 percent to 49 percent in Fiscal 1996. Research and development expenditures at $42.7 million, up slightly from a year ago, represented 7 percent of revenue. Cash and short-term investments totalled $137.3 million at Fiscal 1996 year-end compared with $141.6 million at the end of the previous year. Dr. John Dr. John (also Dr. John Creaux) is the stage name of Malcolm John Rebennack Jr. (born November 21, 1940), a colorful pianist, singer, and songwriter, whose music spans, and often combines, blues, boogie woogie, and rock and roll. Millard, Mitel's President and Chief Executive Officer, said: "Our earnings performance continues to improve as we focus our sales on value-added systems and CTI (Computer Telephone Integration) Combining data with voice systems in order to enhance telephone services. For example, automatic number identification (ANI) allows a caller's records to be retrieved from the database while the call is routed to the appropriate party. products and build on the strong worldwide demand for Mitel's communications semiconductor products." Mitel Corporation is pleased to announce the election of Mr. Anthony L. Craig and Mr. Donald W. Paterson to the Board of Directors, Mitel Corporation. Mr. Anthony L. Craig is a seasoned, high technology executive with extensive experience in the computer industry. He began his career with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) in 1966 and has advanced to a series of Chief Executive positions, including CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of GEISCO GEISCO General Electric Information Services COmpany , a subsidiary of General Electric; CEO of Prime Computer; CEO of C3, a defense systems integrator An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. in Washington, D.C. He joined Oracle as a Senior Vice President of International Operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and subsequently worked at Digital in 1993-94 as Corporate Vice President, World Wide Sales. Since January 1995, Mr. Craig has been President and CEO of Global Knowledge Network, a world-wide provider of technology learning services. He also serves as a director of Iomega Corporation (company, storage) Iomega Corporation - A storage device manufacturer whose major products are the Zip and Jaz removable disk drives and Ditto tape drives. They became popular with an early product called the Bernoulli Box. and Bell Industries Inc. Mr. Donald W. Paterson is currently President, Cavandale Corporation and brings a strong financial background and extensive experience in financing technology companies. Until his departure in 1988, he spent the first thirty plus years of his career with Wood Gundy Inc. as Director and Vice-President, Corporate Finance and has been directly involved in numerous public offerings, including Mitel. Mitel Corporation designs, manufactures and markets systems, sub-systems and microelectronic The miniaturization of electronic circuits. See chip. components for sale to world markets in the telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. , computer telephony integration Computer Telephony Integration - Computer Telephone Integration (CTI) and communications industries communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. . The Company's products include voice communications systems; public switching systems Switching systems (communications) The assemblies of switching and control devices provided so that any station in a communications system may be connected as desired with any other station. ; network enhancement and gateway products; CTI systems and applications; client server telecom products; custom silicon wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. , integrated and hybrid circuits A circuit that contains different types of circuitry or chips. See mixed signal and hybrid microcircuit. , and optoelectronic devices. Mitel's leadership strategy is centered on advancing people-to-people communications in an open, distributed and standards-based environment. For more information about Mitel, please visit our Web Site at http://www.mitel.com. -0- Mitel Corporation CONSOLIDATED STATEMENTS OF INCOME (in millions of Canadian dollars, except per share amounts) (Unaudited)
----Three Months Ended---- ----Years Ended----
March 29, March 31, March 29, March 31,
1996 1995 1996 1995
-------- -------- -------- --------
Revenue:
Products $ 147.7 $ 146.3 $ 504.8 $ 522.3
Service 17.3 18.2 71.6 67.1
--------- --------- --------- ---------
165.0 164.5 576.4 589.4
--------- --------- --------- ---------
Cost of sales (excluding amortization):
Products 71.4 74.0 246.7 275.1
Service 11.3 12.7 45.6 48.2
--------- --------- --------- ---------
82.7 86.7 292.3 323.3
Gross margin 82.3 77.8 284.1 266.1
--------- --------- --------- ---------
Expenses:
Selling and
administrative 48.2 49.7 172.2 179.4
Research and
development (net) 11.6 11.1 42.7 41.9
Investment tax
credits related
to prior years'
research and
development (7.7) - (7.7) -
Amortization 5.2 4.4 19.2 16.5
--------- --------- --------- ---------
57.3 65.2 226.4 237.8
--------- --------- --------- ---------
Operating income 25.0 12.6 57.7 28.3
Interest:
Income 2.4 1.8 10.0 5.7
Expense (0.5) (0.3) (1.7) (1.2)
--------- --------- --------- ---------
Income before income taxes 26.9 14.1 66.0 32.8 Income tax (expense) recovery (11.7) 0.3 (15.0) (1.0)
Net income $ 15.2 $ 14.4 $ 51.0 $ 31.8
--------- --------- --------- ---------
--------- --------- --------- ---------
Net income
attributable to
common shareholders
after preferred
share dividends $ 14.4 $ 13.6 $ 47.7 $ 28.3
--------- --------- --------- ---------
--------- --------- --------- ---------
Net income
per common share $ 0.14 $ 0.13 $ 0.45 $ 0.27
--------- --------- --------- ---------
--------- --------- --------- ---------
Mitel Corporation SCHEDULE OF CONSOLIDATED REVENUE (in millions of Canadian dollars) (Unaudited) Revenue, based on the geographic location of Mitel's customers, was distributed as follows:
---Three Months Ended---
percent of percent of
Mar. 29/96 Total Mar. 31/95 Total
United States $ 72.7 44 $ 78.3 48 Europe 57.5 35 52.0 32 Other Regions 19.9 12 20.0 12
Canada 14.9 9 14.2 8
------ ------ ------ ------
$ 165.0 100 $ 164.5 100
---Years Ended---
percent of percent of
Mar. 29/96 Total Mar. 31/95 Total
United States $ 271.7 47 $ 306.8 52
Europe 173.1 30 153.7 26 Other Regions 85.4 15 78.5 13
Canada 46.2 8 50.4 9
------ ------ ------ ------
$ 576.4 100 $ 589.4 100
Revenue, by product group, was distributed as follows:
---Three Months Ended---
percent of percent of
Mar. 29/96 Total Mar.31/95 Total
Business
Communications
Systems $ 128.8 78 $ 139.0 84
Semiconductors 36.2 22 25.5 16
------ ------ ------ ------
$ 165.0 100 $ 164.5 100
------ ------ ------ ------
---Years Ended---
percent of percent of
Mar. 29/96 Total Mar. 31/95 Total
Business
Communications
Systems $ 455.5 79 $ 501.7 85
Semiconductors 120.9 21 87.7 15
------ ------ ------ ------
$ 576.4 100 $ 589.4 100
------ ------ ------ ------
Business Communications Systems comprise the two previously reported product groups "Customer Premise Equipment" and "CTI and Other Communication Products". CONTACT: Mitel Corporation Ian Chadsey, 613/592-2122, ext. 4088 Ian_Chadseyatmitel.com |
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