Mitel Networks narrows Q1 loss, but still misses market estimates
Mitel Networks Corp. (NASDAQ:MITL) narrowed its fiscal first-quarter net loss Friday amid higher revenue and improved margins, but missed analyst estimates.
The Kanata, Ontario-based company provides everything from business communications to collaboration software and virtualization services.
Net income loss narrowed to $2.1 million or four cents a share, compared to a year-ago loss totalling $2.8 million or five cents a share.
Stripping out restructuring costs, adjusted earnings came in at $4.1 million, or eight cents per share. Revenue slipped to $138.5 million from $149 million.
Analysts polled by Bloomberg sought per-share profits of 14 cents, on $142 million in sales for the quarter ended July 31.
The company's communications solutions unit – which offers a range of Internet protocol and telephony platforms – fell to $114.5 from $124.4 million in sales.
At its NetSolutions segment, sales notched up to $20.7 million from $20 million.
Gross margin widened to 54.3 per cent from 52.2 per cent.
For second quarter, the company foresees revenue of around $140 to $145 million, just under the $147 million estimated by analysts.
Shares fell 4.14 per cent to $2.78 on Nasdaq. The company's stock has fallen 12.58 per cent so far this year.