Mitel Reports Fourth Quarter and Fiscal 2013 Financial Results

Mitel Reports Fourth Quarter and Fiscal 2013 Financial Results

           Fourth Quarter Revenue and Non-GAAP EPS Exceed Consensus

                     Completes Acquisition of prairieFyre

OTTAWA, Ontario, June 24, 2013 (GLOBE NEWSWIRE) -- Mitel® (Nasdaq:MITL)
(TSX:MNW), a leading provider of cloud and premise-based unified
communications and collaboration (UCC) solutions, today announced financial
results for the fourth quarter and fiscal year ended April 30, 2013. All
financial results are in U.S. dollars.

"In the fourth quarter, we are pleased to have exceeded our guidance for
revenue and gross margin," said Richard McBee, Chief Executive Officer, Mitel.
"We had solid sequential revenue growth of 6% resulting from our continued
focus on both our premise-based business and our cloud service offerings. This
month, we announced and completed the acquisition of the contact center OEM
supplier prairieFyre, which will allow us to capitalize on the increasing
market demand for contact center solutions. We also significantly enhanced our
sales leadership with the appointment of three new sales executives in the
Americas."

Fiscal Fourth Quarter 2013 Financial Highlights

  oAdjusted EBITDA from continuing operations for the fourth quarter of
    fiscal 2013 was $25.5 million or 16.9% of revenues.
  oNon-GAAP net income from continuing operations for the fourth quarter of
    fiscal 2013 was $14.1 million, or $0.25 per share.
  oNet income from continuing operations for the fourth quarter of fiscal
    2013 was $8.3 million, or $0.14 per share, diluted.
  oRevenue from continuing operations for the fourth quarter of fiscal 2013
    was $150.9 million.
  oGross margin from continuing operations was 56.1%.
  oCash and cash equivalents as of April 30, 2013 were $69 million,
    supplemented by an available, undrawn $40 million line of credit providing
    $109 million of liquidity. In the fourth quarter, we used $28 million of
    cash to reduce our debt in conjunction with our successful debt
    refinancing.
  oOperating cash flows for the fourth quarter of fiscal 2013 were $6.6
    million.

Fiscal 2013 Financial Highlights

  *Adjusted EBITDA from continuing operations for fiscal 2013 was $85.0
    million or 14.7% of revenues.
  *Non-GAAP net income from continuing operations for fiscal 2013 was $45.6
    million, or $0.81 per share.
  *Net income from continuing operations for fiscal 2013 was $9.9 million, or
    $0.18 per share, diluted.
  *Revenue from continuing operations for fiscal year 2013 was $576.9
    million.
  *Gross margins from continuing operations for fiscal year 2013 were 55.6%.

As in prior periods, due to the announced sale of DataNet/CommSource, which
was completed on March 1, 2013, the results of that business unit are
presented as discontinued operations, and prior period amounts have been
adjusted accordingly.

Please refer to the GAAP to non-GAAP reconciliation tables in this release and
a discussion of the use of non-GAAP measures under the heading, "Non-GAAP
Financial Measurements," below.

Business Unit Results

  oMitel Communications Solutions revenues for the fourth quarter of fiscal
    2013 were $125.9 million. Operating margin for the fourth quarter of
    fiscal 2013 was 25%. For the fiscal year 2013 revenues were $480.3 million
    and operating margin was 23%.
  oMitel NetSolutions revenues for the fourth quarter of fiscal 2013 were
    $21.6 million. Operating margin for the fourth quarter of fiscal 2013 was
    22%. For fiscal year 2013 revenues were $84.2 million and operating margin
    was 22%.

"Although it was a challenging year for our industry, we were successful in
expanding gross margins and EBITDA margins through our disciplined execution
while maintaining our technology leadership in our virtualization and cloud
offerings," said Steve Spooner, Chief Financial Officer, Mitel. "Our recent
acquisition of prairieFyre is a key part of our strategy to give us the
opportunity to expand revenue and margins while further strengthening Mitel's
position in the growing contact center market."

Business Highlights

  *Acquisition of prairieFyre in the first quarter of fiscal year 2014, in
    which the net cash cost to the Company was approximately$20 million.
  *Strengthened sales leadership with the appointments of Joe Vitalone as
    Executive Vice President of Sales in the Americas, Tim Gaines as Vice
    President of Sales for the U.S. and CALA, and Sandra Hill as Vice
    President of Channel Management and Distribution for the U.S. and
    CALA,and the promotions of Joe Ward to Vice President of Sales for Mitel
    VIP Account Customers in the U.S. and Josh Haslett to Vice President of
    Sales and Engineering, Americas.
  *Entered into a wholesale agreement with Sprint to deliver cloud solutions
    for resellers serving small- and mid-sized businesses in the U.S.
  *Continued growth of Mitel's cloud customer base with more than 33,000 new
    cloud users added in the fourth quarter, bringing the total installed base
    to more than 262,000 cloud users.
  *Release of MiVoice for Lync and MiCollab with Google integration, designed
    to enable customers to leverage existing technology investments by
    interoperating with leading IT environments.

Business Outlook

Mitel has set the following financial performance guidance for the first
quarter of fiscal year 2014 ending July 31, 2013.

  oRevenue from continuing operations is expected to be in the range of $140
    to $145 million.
  oGross margin percentage from continuing operations is expected to be in
    the range of 55.0 to 56.0 percent.
  oNon-GAAP operating expenses as a percentage of revenue from continuing
    operations are expected to be in the range of 45.0 to 46.0 percent.
    Non-GAAP operating expenses include SG&A and R&D expenses but exclude
    estimated amortization of $5.6 million for acquisition-related intangible
    assets and estimated stock-based compensation expense of $1.1 million.

Conference Call Information

Mitel will host an investor conference call and live webcast today at 5:00
p.m. EDT (2:00 p.m. PDT) to discuss its financial results for the fourth
quarter and fiscal year ended April 30, 2013. To access the conference call,
dial 866-322-1159. Callers outside the U.S. and Canada should dial
416-640-3404. A replay of the conference call will be available through
Saturday, June 29, 2013. To access the replay, please dial 888-203-1112 and
enter pass code 2171897. Callers outside the U.S. and Canada should dial
647-436-0148 and enter pass code 2171897.The live webcast will be accessible
on Mitel's investor relations website at http://investor.mitel.com/ and will
be archived and available on this site for at least three months.

Non-GAAP Financial Measurements

This press release includes references to non-GAAP financial measures
including adjusted EBITDA, non-GAAP income,non-GAAP income per share and
non-GAAP operating expenses. Non-GAAP financial measures do not have any
standardized meaning and are therefore unlikely to be comparable to similar
measures presented by other companies. We use these non-GAAP financial
measures to assist management and investors in understanding our past
financial performance and prospects for the future, including changes in our
operating results, trends and marketplace performance, exclusive of unusual
events or factors which do not directly affect what we consider to be our core
operating performance. Non-GAAP measures are among the primary indicators
management uses as a basis for our planning and forecasting of future periods.
Investors are cautioned that non-GAAP financial measures should not be relied
upon as a substitute for financial measures prepared in accordance with
generally accepted accounting principles. Please see the reconciliation of
non-GAAP financial measures to the most directly comparable U.S. GAAP measure
attached to this release.  In addition, where this press release references
"consensus," consensus is considered to be the average analyst estimates as
summarized on Thomson Reuters Knowledge on June 23, 2013.

Forward-Looking Statements

Some of the statements in this presentation are forward-looking statements (or
forward-looking information) within the meaning of applicable U.S. and
Canadian securities laws. These include statements using the words target,
outlook, may, will, should, could, estimate, continue, expect, intend, plan,
predict, potential, project and anticipate, and similar statements which do
not describe the present or provide information about the past. Actual results
may differ materially from those presented in forward-looking statements.
Material risks that could cause actual results to differ include: our ability
to achieve or sustain profitability in the future; fluctuations in our
quarterly and annual revenues and operating results; fluctuations in foreign
exchange rates; current and ongoing global economic instability; intense
competition; our reliance on channel partners for a significant component of
our sales; our dependence upon a small number of outside contract
manufacturers to manufacture our products; our ability to successfully
implement our restructuring plans; our ability to successfully integrate the
prairieFyre acquisition; and, our ability to implement and achieve our
business strategies successfully. Additional risks are described under the
heading "Risk Factors" in Mitel's Annual Report on Form 10-K. We have made
assumptions regarding, among other things: no unforeseen changes occurring in
the competitive landscape that would affect our industry generally or Mitel in
particular; a stable or recovering economic environment; no significant event
occurring outside the ordinary course of our business; our ability to
successfully implement our restructuring plans; and, stable foreign exchange
and interest rates. Forward-looking information is intended to help you
understand management's current views of our future prospects, and it may not
be appropriate for other purposes. Except as required by law, Mitel will not
necessarily update forward-looking statements.

About Mitel

Mitel® (Nasdaq:MITL) (TSX:MNW) is a global provider of unified communications
and collaboration (UCC) software, solutions and services that enable
organizations to conduct business anywhere, over any medium with the device of
their choice. Through a single cloud-ready software stream, Mitel's Freedom
architecture provides customers in over 100 countries the flexibility and
simplicity needed to support today's dynamic work environment. For more
information visit www.mitel.com.

Mitel and the Mitel logo are registered trademarks of Mitel Networks
Corporation.

All other trademarks are the property of their respective owners.

MITL-F

                                                            
                                                            
MITEL NETWORKS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions of US dollars)
(unaudited)
                                                            
                                                   April 30, April 30,
                                                    2013      2012
                                                            
ASSETS                                                       
Current assets:                                              
Cash and cash equivalents                          $69.0   $78.7
Accounts receivable                                 123.0    129.0
Sales-type lease receivables                        15.4     16.9
Inventories                                         27.9     28.3
Deferred tax asset                                 17.2     12.9
Other current assets                               32.4     33.8
Assets of component held for sale, current          --      3.4
                                                   284.9    303.0
Non-current portion of sales-type lease receivables 18.7     23.6
Deferred tax asset                                 119.7    117.4
Property and equipment                              30.1     21.5
Identifiable intangible assets                      55.9     78.5
Goodwill                                            132.6    132.6
Other non-current assets                            14.5     8.7
Assets of component held for sale, non-current      --      1.9
                                                   $656.4  $687.2
                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                         
Current liabilities:                                         
Accounts payable and accrued liabilities           $101.1  $104.3
Current portion of deferred revenue                32.4     33.3
Current portion of long-term debt                  6.5      4.6
                                                   140.0    142.2
Long-term debt                                     281.6    307.2
Lease recourse liability                            3.8      5.7
Long-term portion of deferred revenue               14.8     12.1
Deferred tax liability                             23.4     35.9
Pension liability                                  90.5     75.2
Other non-current liabilities                       18.3     19.1
                                                   572.4    597.4
Shareholders' equity                                84.0     89.8
                                                   $656.4  $687.2

                                                               
                                                               
MITEL NETWORKS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions of US dollars, except per share amounts)
(unaudited)
                                                               
                               Quarter   Quarter Ended Year Ended  Year Ended
                              Ended     April 30,     April 30,   April 30,
                               April 30, 2012          2013        2012
                               2013
                                                               
Revenues                       $150.9  $157.6      $576.9    $611.8
Cost of revenues               66.2     69.9         256.3      282.4
Gross margin                   84.7     87.7         320.6      329.4
Expenses:                                                       
Selling, general and           55.9     55.6         221.0      222.9
administrative
Research and development       13.5     14.8         55.7       58.6
Special charges and            1.7      1.1          20.3       17.1
restructuring costs
Loss on litigation settlement  --      0.5          1.5        1.5
                              71.1     72.0         298.5      300.1
Operating income from          13.6     15.7         22.1       29.3
continuing operations
Interest expense               (5.8)    (4.7)        (19.7)     (18.8)
Debt and warrant retirement    (2.6)    --          (2.6)      --
costs
Other income (expense), net    0.4      0.3          1.3        (0.7)
Net income (loss) from
continuing operations, before  5.6      11.3         1.1        9.8
income taxes
Current income tax recovery    1.2      (7.5)        (10.3)     (8.4)
(expense)
Deferred income tax recovery   1.5      46.0         19.1       47.8
(expense)
Net income from continuing     8.3      49.8         9.9        49.2
operations
Net income (loss) from         (0.2)    (0.6)        (3.7)      0.6
discontinued operations
Net income                    $8.1    $49.2       $6.2      $49.8
                                                               
Net income (loss) per common                                    
share - Basic
From continuing operations     $0.15   $0.93       $0.19     $0.92
From discontinued operations   $--    $(0.01)     $(0.07)   $0.01
Net loss per common share -    $0.15   $0.92       $0.12     $0.93
Basic
                                                               
Net income (loss) per common                                    
share - Diluted
From continuing operations     $0.14   $0.89       $0.18     $0.88
From discontinued operations   $--    $(0.01)     $(0.07)   $0.01
Net loss per common share -    $0.14   $0.88       $0.11     $0.89
Diluted
                                                               
Weighted-average number of common shares                         
outstanding (in millions):
Basic                          53.7     53.6         53.7       53.5
Diluted                        56.2     56.1         56.2       56.0

                                                               
                                                               
MITEL NETWORKS CORPORATION
Cash flow information
(in millions of US dollars)
(unaudited)
                                                               
                               Quarter Ended Quarter   Year Ended  Year Ended
                              April 30,     Ended     April 30,   April 30,
                               2013          April 30, 2013        2012
                                             2012
                                                               
                                                               
Cash provided by (used in):                                     
Net cash provided by operating $6.6        $3.4    $44.0     $35.0
activities
Net cash used in investing     (1.1)        (0.9)    (11.6)     (12.8)
activities
Net cash used in financing     (36.8)       (1.3)    (41.1)     (16.6)
activities
Effect of exchange rate        (0.3)        0.6      (1.0)      (0.8)
changes on cash balances
                                                               
Net increase (decrease) in     (31.6)       1.8      (9.7)      4.8
cash and cash equivalents
                                                               
Cash and cash equivalents,     100.6        76.9     78.7       73.9
beginning of period
                                                               
Cash and cash equivalents, end $69.0       $78.7   $69.0     $78.7
of period
                                                               
                                                               
Additional information on                                       
capital expenditures:
Capital expenditures acquired  1.0          1.7      11.8       13.6
with cash
Capital expenditures financed  1.7          1.5      9.1        2.7
through capital leases
                                                               
Total capital expenditures     $2.7        $3.2    $20.9     $16.3

                                                                
                                                                
MITEL NETWORKS CORPORATION
Reconciliation of Net Income (Loss) to Non-GAAP Net Income
(in millions of US dollars, except per share amounts)
(unaudited)
                                                                
                              Quarter                   Year Ended  Year Ended
                             Ended      Quarter Ended  April 30,   April 30,
                              April 30,  April 30, 2012 2013        2012
                              2013
                                                                
Net income from continuing    $8.3     $49.8        $9.9      $49.2
operations
Income tax recovery           (2.7)     (38.5)        (8.8)      (39.4)
Net income from continuing
operations, before income     5.6       11.3          1.1        9.8
taxes
                                                                
Adjustments:                                                     
Foreign exchange loss (gain)  (0.3)     --           (0.2)      1.5
Special charges and           1.7       1.1           20.3       17.1
restructuring costs
Stock-based compensation      0.9       1.0           4.2        4.8
Loss on litigation settlement --       0.5           1.5        1.5
Debt and warrant retirement   2.6       --           2.6        --
costs
Amortization of
acquisition-related           5.5       5.5           22.3       22.3
intangibles assets
Non-GAAP net income from
continuing operations, before 16.0      19.4          51.8       57.0
income taxes
Non-GAAP tax expense^(1)      (1.9)     (2.3)         (6.2)      (6.8)
Non-GAAP net income from      14.1      17.1          45.6       50.2
continuing operations
Non-GAAP net income (loss)    (0.2)     (0.8)         (1.2)      1.0
from discontinued operations
Non-GAAP net income           $13.9    $16.3        $44.4     $51.2
                                                                
Non-GAAP net income (loss)                                       
per share, diluted:
Non-GAAP net income per
common share from continuing  $0.25    $0.30        $0.81     $0.89
operations
Non-GAAP net income (loss)
per common share from         $--     $(0.01)      $(0.02)   $0.02
discontinued operations
Non-GAAP net income per       $0.25    $0.29        $0.79     $0.91
common share
Weighted-average number of
common shares outstanding (in 56.2      56.1          56.2       56.0
millions):
                                                                
(1) Non-GAAP tax expense is based on an estimated effective tax rate of 12.0%.

                                                               
                                                               
MITEL NETWORKS CORPORATION
Reconciliation of Net Income to Adjusted EBITDA
(in millions of US dollars)
(unaudited)
                                                               
                         Quarter Ended  Quarter Ended  Year Ended  Year Ended
                        April 30, 2013 April 30, 2012 April 30,   April 30,
                                                       2013        2012
                                                               
Net income              $8.1         $49.2        $6.2      $49.8
Net loss (income) from   0.2           0.6           3.7        (0.6)
discontinued operations
Net income from          8.3           49.8          9.9        49.2
continuing operations
Adjustments:                                                    
Interest expense         5.8           4.7           19.7       18.8
Income tax recovery      (2.7)         (38.5)        (8.8)      (39.4)
Amortization and         9.2           8.7           35.8       33.4
depreciation
Foreign exchange loss    (0.3)         --           (0.2)      1.5
(gain)
Special charges and      1.7           1.1           20.3       17.1
restructuring costs
Stock-based compensation 0.9           1.0           4.2        4.8
Loss on litigation       --           0.5           1.5        1.5
settlement
Debt and warrant         2.6           --           2.6        --
retirement costs
                                                               
Adjusted EBITDA from     25.5          27.3          85.0       86.9
continuing operations
                                                               
Adjusted EBITDA from
discontinued             (0.2)         (0.9)         (1.3)      1.1
operations^(1)
                                                               
Adjusted EBITDA          $25.3        $26.4        $83.7     $88.0
                                                               
(1)The reconciliation of net income (loss) from discontinued operations to
Adjusted EBITDA from discontinued operations for the quarter ended April 30,
2013 and the quarter and year ended April 30, 2012 consists of income tax
expense (recovery) of nil, ($0.3) and $0.5, respectively. The reconciliation
of net income from discontinued operations to Adjusted EBITDA from
discontinued operations for the year ended April 30, 2013 consists of special
charges and restructuring costs of $1.6, non-cash impairment of goodwill of
$1.9 and income tax recovery of ($1.1).

                                                               
                                                               
MITEL NETWORKS CORPORATION
Segmented Information
(in millions of US dollars)
(unaudited)
                                                               
                          Quarter Ended  Quarter Ended Year Ended  Year Ended
                         April 30, 2013 April 30,     April 30,   April 30,
                                         2012          2013        2012
                                                               
Revenues                                                        
Mitel Communications      $125.9       $133.7      $480.3    $514.7
Solutions
NetSolutions              21.6          20.4         84.2       81.0
Other^(1)                 3.4           3.5          12.4       16.1
Total revenues            $150.9       $157.6      $576.9    $611.8
                                                               
Segment income                                                  
Mitel Communications      $31.4        $32.3       $108.5    $112.3
Solutions
NetSolutions              4.8           4.7          18.9       18.6
Other^(1)                 0.6           0.7          2.2        3.1
Total segment income      $36.8        $37.7       $129.6    $134.0
                                                               
(1) The operations of DataNet and CommSource are recorded as discontinued
operations and therefore are excluded from the periods presented.

CONTACT: Amy MacLeod (media)
         613-592-2122 x71245
         amy_macleod@mitel.com
        
         Malcolm Brown (industry analysts)
         613-592-2122 x71246
         malcolm_brown@mitel.com
        
         Cynthia Hiponia and Alice Kousoum (investor relations)
         613-592-2122 x71997
         investorrelations@mitel.com

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