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Mitel Corporation. (55PT)

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Thursday 01 February, 2001

Mitel Corporation.

Mitel Q3 Results

Mitel Corporation
1 February 2001



FOR:  MITEL CORPORATION

TSE, NYSE SYMBOL:  MLT
LSE SYMBOL:  MLT.L



Mitel Corporation Releases Fiscal 2001 Third Quarter
Results

OTTAWA, CANADA--

* Prepares for new focus as a 'pure play' communications
semiconductor company.

* Moves towards debt-free, strong cash position.

Mitel Corporation (NYSE/TSE:MLT) today announced third quarter
results for the Fiscal 2001 quarterly period ended December 29,
2000 which reflect the results of the Semiconductor business as
continuing operations and the results of its Communications
Systems business treated as a discontinued operation.

With this announcement, Mitel is expressing and re-stating its
results from continuing operations to reflect its active evolution
to a 'pure play' communications semiconductor company.
Accordingly, investors are encouraged to thoroughly review the
accompanying financial statements and schedules to ensure a
complete and accurate picture of the company's performance and
operational thrusts.

Results from Continuing Operations

Revenue for the third quarter reached $171.1 million, down from
the record $194.3 million of the second quarter of Fiscal 2001 but
up 5% from $163.4 million for the same period last year.  Year to
date, revenue was $549.2 million, up 28% from $427.9 million last
year.

Adjusted Net Income ( + ) for the quarter was $10.2 million or
$0.08 per share, compared with $14.0 million or $0.12 per share in
the third quarter of Fiscal 2000. Adjusted Net Income for the year
to date was $63.5 million, or $0.51 per share, up significantly
from $20.5 million, or $0.16 per share, for the nine months ended
last year.

Order backlog at the end of the quarter was $225 million, compared
with $280 million at the close of the previous quarter.

As expected, results from continuing operations for the third
quarter were influenced by three factors.  The first is an
expected short-term industry-wide slow down in the growth of sales
as customers and distribution channels cope with excessive
inventory levels.  The second is Mitel's continuing significant
investment in research and development, principally in the areas
of network and user access to develop and launch new products
supporting broadband communications. The third relates to steps
underway in the company to establish a new business model based
exclusively on its semiconductor operations, resulting in higher
selling and administrative expenses during this transition.

'With the imminent completion of the sale of our Systems division,
we will be well-positioned to cope with the short term
uncertainties facing our industry while effecting the transition
of our company,' said Kirk K. Mandy, president and CEO, Mitel
Corporation. 'We will be substantially debt-free and enjoying a
strong cash position to enable us to continue our R&D commitment
without interruption while we tune our operations to be in line
with our needs as a communications semiconductor company.'

Discontinued Operations and Net Loss

After recording a loss from discontinued operations, of $8.6
million in the third quarter, Mitel recorded a net loss of $34.2
million, or $0.28 per share, which also included the amortization
of acquired intangibles of $35.8 million.  This compares to net
income of $16.6 million, or $0.14 per share, in the same period of
Fiscal 2000, after the amortization of acquired intangibles of
$3.8 million and income from discontinued operations of $6.4
million.

Cash Flow and Liquidity

For the first nine months of Fiscal 2001, cash flow from
operations before working capital changes was $140.9 million,
compared with $149.1 million for the same period in the previous
year.  Cash and short-term investments reached $246.9 million at
December 29, 2000, up from $230.0 million at the end of the
previous quarter.

Fiscal 2001 Fourth Quarter Outlook

Based on the current view of its business, the company is
projecting that its performance in the final quarter of the year
will continue to be affected by the industry slow-down.
Semiconductor sales are estimated to be approximately $125 million
in the final quarter resulting in an Adjusted Net Loss ( + ) from
continuing operations of approximately $0.10 per share.

About Mitel

Mitel is currently a two-business organization involved in
Communications Systems and Semiconductors and is transitioning to
be a 'pure play' communications semiconductor company.

Mitel is now a global provider of semiconductors for converging
voice and data networks in a rapidly evolving Internet economy. In
Fiscal 2000, the company had annual revenues from semiconductor
operations of $600 million and presently employs some 2,500 people
worldwide in its semiconductor business.

( + ) As a supplementary measure to assess financial performance,
management utilizes Adjusted Net Income (Loss) and Adjusted Net
Income (Loss) per common share which exclude the impact of
amortization of acquired intangibles, special charges, non-cash
debt issue and other costs expensed on an early partial debt
repayment, and discontinued operations.

Certain statements in this press release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties, and
other factors which may cause the actual results, performance or
achievements of the company, to be materially different from any
future results, performance, or achievements expressed or implied
by such forward-looking statements. Such risks, uncertainties and
assumptions include, among others, the risks discussed in
documents filed by the Company with the Securities and Exchange
Commission. Investors are encouraged to consider the risks
detailed in those filings.

A conference call for analysts will be held today from 8:30-9:30am
ET.  Access the call by dialing 1-800-478-9326 or 416-695-5801.
The call will also be webcast via www.Q1234.com. For a replay,
call 1-800-408-3053 or 416-695-5800, passcode 669793.  The replay
is available until February 8, 2001.

A conference call for media will be held today from 9:30-10:00 ET.
To access the call, dial 1-800-273-9672 or 416-695-5806.  For a
replay, call 1-800-408-3053 or 416-695-5800, passcode 669921. The
replay is available until February 8, 2001.




                        Mitel Corporation
                   CONSOLIDATED BALANCE SHEETS
                (in millions of Canadian dollars)
                           (Unaudited)

                                         Dec. 29,          March 31,
                                             2000               2000
                                       ----------         ----------
ASSETS

Current assets:
  Cash and cash equivalents            $    244.5         $    195.5
  Short-term investments                      2.4               32.9
  Accounts receivable                       273.8              288.2
  Inventories                               195.5              187.7
  Prepaid expenses and other                 42.1               37.2
  Future income taxes                         8.3                9.5
                                       ----------         ----------
                                            766.6              751.0

Long-term receivables                        24.8               21.7
Fixed assets                                439.1              457.4
Acquired intangible assets                  219.6                3.0
Patents, trademarks and other                15.8               11.3
                                       ----------         ----------
                                       $  1,465.9         $  1,244.4
                                       ----------         ----------
                                       ----------         ----------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable and accrued
   Liabilities                         $    214.5         $    215.4
  Income and other taxes payable              2.6               26.2
  Future income tax liabilities               8.8               11.7
  Deferred revenue                           38.4               44.1
  Current portion of long-term debt          30.9               57.9
                                       ----------         ----------
                                            295.2              355.3
Long-term debt                              201.1              217.5
Pension liability                            17.5               13.4
Future income tax liabilities                22.0               27.2
                                       ----------         ----------
                                            535.8              613.4
                                       ----------         ----------

Shareholders' equity:
  Capital stock
    Preferred shares                         36.7               37.0
    Common shares                           634.2              325.6
  Contributed surplus                         9.2                9.2
  Retained earnings                         253.4              262.6
  Translation account                        (3.4)              (3.4)
                                       ----------         ----------
                                            930.1              631.0
                                       ----------         ----------
                                       $  1,465.9         $  1,244.4
                                       ----------         ----------
                                       ----------         ----------


                       Mitel Corporation
                    CONSOLIDATED STATEMENTS OF INCOME
    (in millions of Canadian dollars, except per share amounts)
                           (Unaudited)

                         Three Months Ended        Nine Months Ended
                   Dec. 29,  Sept. 29,  Dec. 24,  Dec. 29,  Dec. 24,
                       2000       2000      1999      2000      1999
                   -------------------------------------------------
Revenue            $  171.1   $  194.3  $  163.4  $  549.2  $  427.9
                   -------------------------------------------------

Cost of sales:
  Cost of sales
   other than
   amortization        68.3       82.1      72.3     223.8     199.7
  Amortization of
   manufacturing
   assets              12.6       12.6      12.6      38.6      39.7
                   -------------------------------------------------
                       80.9       94.7      84.9     262.4     239.4
                   -------------------------------------------------
Gross margin           90.2       99.6      78.5     286.8     188.5
                   -------------------------------------------------

Expenses:
  Selling and
   administrative      40.5       33.7      32.9     103.8      84.9
  Research and
   Development
   (net)               33.0       27.5      19.8      85.0      61.0
  Amortization of
   acquired
   intangibles         35.8       23.9       3.8      59.8      11.4
                   -------------------------------------------------
                      109.3       85.1      56.5     248.6     157.3
                   -------------------------------------------------
Operating income
 (loss) from
 continuing
 operations           (19.1)      14.5      22.0      38.2      31.2
Interest income         3.4        3.4       1.8       9.8       5.4
Interest expense       (5.1)      (4.8)     (4.9)     (5.2)    (15.3)
Debt issue costs          -          -         -      (0.6)        -
                   -------------------------------------------------
Income (loss) from
 continuing
 operations before
 income taxes         (20.8)      13.1      18.9      32.2      21.3
Income tax expense      4.8       11.9       8.7      29.1      12.2
                   -------------------------------------------------
Net income (loss)
 from continuing
 operations for
 the period           (25.6)       1.2      10.2       3.1       9.1
Income (loss) from
 discontinued
 operations for
 the period            (8.6)       5.4      14.4      (9.2)     23.4
Loss on disposal of
 Discontinued
 operations for the
 period                   -          -      (8.0)        -      (8.0)
                   -------------------------------------------------
Net income (loss)
 for the period    $  (34.2)  $    6.6  $   16.6  $   (6.1) $   24.5
                   -------------------------------------------------
                   -------------------------------------------------

Adjusted Net Income
 for the period    $   10.2   $   25.1  $   14.0  $   63.5  $   20.5
                   -------------------------------------------------
                   -------------------------------------------------

Adjusted Net Income
 per common share
 - basic           $   0.08   $   0.20  $   0.12  $   0.51  $   0.16
                   -------------------------------------------------
                   -------------------------------------------------

Net income (loss)
 per common share:
  Net income (loss)
   per common share
   from continuing
   operations:
    Basic and fully
     diluted       $  (0.21)  $      -  $   0.08  $   0.01  $   0.06
                   -------------------------------------------------
                   -------------------------------------------------
  Net income (loss)
   per common share:
    Basic and fully
     Diluted       $  (0.28)  $   0.05  $   0.14  $  (0.07) $   0.19
                   -------------------------------------------------
                   -------------------------------------------------

Weighted average
 number of common
 shares outstanding
 (millions):
  Basic               124.4      121.3     113.7     119.9     115.1
                   -------------------------------------------------
                   -------------------------------------------------
  Fully diluted       126.0      122.6     119.6     120.9     115.4
                   -------------------------------------------------
                   -------------------------------------------------

Percentage of
 sales:
  Gross margin         53 %       51 %      48 %      52 %      44 %
  Selling and
   Administrative      24 %       17 %      20 %      19 %      20 %
  Research and
   development (net)   19 %       14 %      12 %      15 %      14 %


                        Mitel Corporation
              CONSOLIDATED STATEMENTS OF CASH FLOWS
                (in millions of Canadian dollars)
                           (Unaudited)

                                              Nine Months Ended
                                         Dec. 29            Dec. 24,
                                            2000                1999
                                       ----------         ----------
CASH PROVIDED BY (USED IN)

Operating activities:
  Net income (loss) for the period     $     (6.1)        $     24.5
  Amortization of capital and other
   assets                                   147.8              121.4
  Investment tax credits                      1.7                5.9
  Loss (gain) on sale of capital assets       2.2               (0.1)
  Future income taxes                        (5.3)              (3.5)
  Change in pension liability                 0.6                0.9
  Decrease (increase) in working capital     (9.2)              11.8
                                       ----------         ----------

    Total                                   131.7              160.9
                                       ----------         ----------

Investing activities:
  Change in short-term investments           39.3              (10.2)
  Additions to capital and other assets     (72.7)             (46.2)
  Proceeds from disposal of capital
   assets                                     1.6                0.8
  Increase in long-term investments          (7.6)                 -
  Acquisitions                               10.3                  -
  Net change in non-cash balances
   related to investing activities           (6.1)              (6.9)
                                       ----------         ----------
    Total                                   (35.2)             (62.5)
                                       ----------         ----------

Financing activities:
  Repayment of long-term debt               (27.1)              (7.9)
  Repayment of capital lease
   Liabilities                              (26.3)             (22.6)
  Dividends on preferred shares              (2.4)              (2.4)
  Issue of common shares - net                7.2                1.1
  Repurchase of common and preferred
   shares                                    (0.3)             (36.4)
  Net change in non-cash balances
   related to financing activities              -               (0.2)
                                       ----------         ----------
    Total                                   (48.9)             (68.4)
                                       ----------         ----------

Effect of currency translation on cash        1.4               (1.7)
                                       ----------         ----------

Increase in cash and cash equivalents        49.0               28.3

Cash and cash equivalents, beginning
 of period                                  195.5              125.3
                                       ----------         ----------

Cash and cash equivalents, end of
 period                                $    244.5         $    153.6
                                       ----------         ----------
                                       ----------         ----------


                       Mitel Corporation
                    SUPPLEMENTARY SCHEDULES
    (in millions of Canadian dollars, except per share amounts)
                           (Unaudited)

Adjusted Net Income

As a supplementary measure to assess financial performance,
management utilizes Adjusted Net Income and Adjusted Net Income per
common share which exclude the impact of amortization of acquired
intangibles, special charges (net) and non-cash debt issue costs
expensed on an early partial debt repayment.  The Adjusted Net Income
and Adjusted Net Income per common share were as follows:


                         Three Months Ended        Nine Months Ended
                   Dec. 29,  Sept. 29,  Dec. 24,  Dec. 29,  Dec. 24,
                       2000       2000      1999      2000      1999
                   -------------------------------------------------

Net income (loss)
 for the period as
 reported          $  (34.2)  $    6.6  $   16.6  $   (6.1) $   24.5

Adjusted Net Income,
 as adjusted for:
  Amortization of
   acquired
   intangibles         35.8       23.9       3.8      59.8      11.4
  Debt issue costs        -          -         -       0.6         -
  Loss (income)
   from discontinued
   operations           8.6       (5.4)    (14.4)      9.2     (23.4)
  Loss on disposal
   of discontinued
   operations             -          -       8.0         -       8.0
                   -------------------------------------------------

Adjusted Net
 income for the
 period            $   10.2   $   25.1  $   14.0  $   63.5  $   20.5
                   -------------------------------------------------
                   -------------------------------------------------

Adjusted Net Income
 per common share
 (after preferred
 share dividends)
 - basic           $   0.08   $   0.20  $   0.12  $   0.51  $   0.16
                   -------------------------------------------------
                   -------------------------------------------------


                        Mitel Corporation
                     SUPPLEMENTARY SCHEDULES
                (in millions of Canadian dollars)
                           (Unaudited)

Information On Business Segments

                                                 Unallocated
Three Months Ended
 December 29, 2000     Communications   Medical     Costs     Total
                       --------------------------------------------

Total external sales
 revenue                      $ 158.8   $  12.3   $     -   $ 171.1
Amortization of
 buildings and
 equipment                       22.1       0.2         -      22.3
Amortization of
 acquired intangibles               -         -      35.8      35.8
Segment's operating
 income (loss) from
 continuing operations           18.4      (1.7)    (35.8)    (19.1)

                                                 Unallocated
Three Months Ended
 September 29, 2000    Communications   Medical     Costs     Total
                       --------------------------------------------

Total external sales
 revenue                      $ 182.8   $  11.5   $     -   $ 194.3
Amortization of
 buildings and
 equipment                       22.5       0.2         -      22.7
Amortization of acquired
 intangibles                                         23.9      23.9
Segment's operating
 income from continuing
 operations                      37.9       0.5     (23.9)     14.5

                                                 Unallocated
Three Months Ended
 December 24, 1999     Communications   Medical     Costs     Total
                       --------------------------------------------

Total external sales
 Revenue                      $ 154.2   $   9.2   $     -   $ 163.4
Amortization of
 buildings and
 equipment                       18.9       0.2         -      19.1
Amortization of acquired
 intangibles                        -         -       3.8       3.8
Segment's operating
 income from continuing
 operations                      23.4       2.4      (3.8)     22.0

                                                 Unallocated
Nine Months Ended
 December 29, 2000     Communications   Medical     Costs     Total
                       --------------------------------------------

Total external sales
 revenue                      $ 513.6   $  35.6   $     -   $ 549.2
Amortization of
 buildings and
 equipment                       65.7       0.7         -      66.4
Amortization of acquired
 Intangibles                        -                59.8      59.8
Segment's operating
 income from continuing
 operations                      96.6       1.4     (59.8)     38.2

                                                 Unallocated

Nine Months Ended
 December 24, 1999     Communications   Medical     Costs     Total
                       --------------------------------------------

Total external sales
 revenue                      $ 399.0   $  28.9   $     -   $ 427.9
Amortization of
 buildings and
 equipment                       58.5       0.6         -      59.1
Amortization of acquired
 intangibles                        -                11.4      11.4
Segment's operating
 income from continuing
 operations                      35.4       7.2     (11.4)     31.2


                       Mitel Corporation
                    SUPPLEMENTARY SCHEDULES
    (in millions of Canadian dollars, except per share amounts)
                           (Unaudited)

Product Information
Revenue from continuing operations, by product, was distributed as
follows:

                      Three Months    Three Months     Three Months
                         Ended           Ended             Ended
                     Dec. 29, 2000   Sept. 29, 2000   Dec. 24, 1999
                     -------------    -------------   -------------
Network Access           $    56.8        $    68.8       $    55.8
User Access                   47.8             53.5            51.9
Custom Products               54.2             60.5            46.5
                     -------------    -------------   -------------
Communications Segment       158.8            182.8           154.2
Medical Segment               12.3             11.5             9.2
                     -------------    -------------   -------------
Total                    $   171.1        $   194.3       $   163.4
                     -------------    -------------   -------------
                     -------------    -------------   -------------

                       Nine Months     Nine Months
                         Ended           Ended
                     Dec. 29, 2000    Dec. 24, 1999
                     -------------    -------------
Network Access           $   191.9        $   131.0
User Access                  149.5            135.5
Custom Products              172.2            132.5
                     -------------    -------------
Communications
 Segment                     513.6            399.0
Medical Segment               35.6             28.9
                     -------------    -------------
Total                    $   549.2        $   427.9
                     -------------    -------------
                     -------------    -------------

Geographic Information

Revenue from continuing operations, based on the geographic location
of Mitel's customers, was distributed as follows:

                      Three Months    Three Months     Three Months
                         Ended           Ended             Ended
                     Dec. 29, 2000   Sept. 29, 2000   Dec. 24, 1999
                     -------------    -------------   -------------
United States            $    65.0        $    87.8       $    73.6
Europe                        53.4             57.5            36.9
Asia/Pacific                  44.9             41.1            25.0
Canada                         4.3              5.0             8.7
Other Regions                  3.5              2.9            19.2
                     -------------    -------------   -------------
Total                    $   171.1        $   194.3       $   163.4
                     -------------    -------------   -------------
                     -------------    -------------   -------------

                       Nine Months     Nine Months
                         Ended           Ended
                     Dec. 29, 2000    Dec. 24, 1999
                     -------------    -------------
United States            $   224.3        $   173.3
Europe                       164.3            110.7
Asia/Pacific                 136.7            113.2
Canada                        15.2             22.1
Other Regions                  8.7              8.6
                     -------------    -------------
Total                    $   549.2        $   427.9
                     -------------    -------------
                     -------------    -------------


                       Mitel Corporation
                    SUPPLEMENTARY SCHEDULES
    (in millions of Canadian dollars, except per share amounts)
                           (Unaudited)

Consolidated Quarterly Statements of Income (Restated) - Fiscal 2001

                            First      Second      Third       Nine
                           Quarter    Quarter     Quarter     Months
                     -----------------------------------------------
Revenue                    $ 183.8    $ 194.3    $  171.1   $  549.2
                     -----------------------------------------------
Gross margin                  97.0       99.6        90.2      286.8
                     -----------------------------------------------

Expenses:
  Selling and
   administrative             29.6       33.7        40.5      103.8
  Research and
   development (net)          24.5       27.5        33.0       85.0
  Amortization of
   acquired intangibles        0.1       23.9        35.8       59.8
                     -----------------------------------------------
                              54.2       85.1       109.3      248.6
                     -----------------------------------------------

Operating income (loss)
 from continuing
 operations                   42.8       14.5       (19.1)      38.2
Interest income                3.0        3.4         3.4        9.8
Interest expense              (5.3)      (4.8)       (5.1)     (15.2)
Debt issue costs              (0.6)         -           -       (0.6)
                     -----------------------------------------------
Income (loss) from
 continuing operations
 before income taxes          39.9       13.1       (20.8)      32.2
Income tax expense
 (recovery)                   12.4       11.9         4.8       29.1
                     -----------------------------------------------
Net income (loss)
 from continuing
 operations                   27.5        1.2       (25.6)       3.1
Income (loss) from
 Discontinued
 Operations                   (6.0)       5.4        (8.6)      (9.2)
Loss on disposal of
 Discontinued
 Operations                      -          -           -          -
                     -----------------------------------------------
Net income (loss)          $  21.5    $   6.6    $  (34.2)  $   (6.1)
                     -----------------------------------------------
                     -----------------------------------------------

Net income (loss) per
 common share from
 continuing operations
 (basic)                   $  0.23    $     -    $  (0.21)  $   0.01
                     -----------------------------------------------
                     -----------------------------------------------

Net income (loss) per
 common share (basic)      $  0.18    $  0.05    $  (0.28)  $  (0.07)
                     -----------------------------------------------
                     -----------------------------------------------

Adjusted Net Income
 (Loss)                    $  28.2    $  25.1    $   10.2   $   63.5
                     -----------------------------------------------
                     -----------------------------------------------

Adjusted Net Income
 (loss) per common
 share (basic)             $  0.24    $  0.20    $   0.08   $   0.51
                     -----------------------------------------------
                     -----------------------------------------------

Weighted average
 number of common
 shares outstanding
 (millions):                 114.2      121.3       124.4      119.9
                     -----------------------------------------------
                     -----------------------------------------------


                       Mitel Corporation
                    SUPPLEMENTARY SCHEDULES
    (in millions of Canadian dollars, except per share amounts)
                           (Unaudited)

Consolidated Quarterly Statements of Income (Restated) - Fiscal 2000

                     First      Second    Third     Fourth      Full
                    Quarter    Quarter   Quarter   Quarter      Year
                   -------------------------------------------------
Revenue             $ 125.1    $ 139.4   $ 163.4   $ 174.9   $ 602.8
                   -------------------------------------------------
Gross margin           49.7       60.3      78.5      95.7     284.2
                   -------------------------------------------------

Expenses:
  Selling and
   administrative      25.1       26.9      32.9      32.3     117.2
  Research and
   development
   (net)               21.8       19.4      19.8      23.2      84.2
  Amortization of
   acquired
   intangibles          3.8        3.8       3.8       2.6      14.0
                   -------------------------------------------------
                       50.7       50.1      56.5      58.1     215.4
                   -------------------------------------------------

Operating income
 (loss) from
 continuing
 operations            (1.0)      10.2      22.0      37.6      68.8
Interest income         1.9        1.7       1.8       3.2       8.6
Interest expense       (5.2)      (5.2)     (4.9)     (6.2)    (21.5)
Debt issue costs          -          -         -      (0.5)     (0.5)
                   -------------------------------------------------

Income (loss) from
 continuing
 operations before
 income taxes          (4.3)       6.7      18.9      34.1      55.4
Income tax expense
 (recovery)            (0.2)       3.7       8.7       6.5      18.7
                   -------------------------------------------------

Net income (loss)
 from continuing
 operations            (4.1)       3.0      10.2      27.6      36.7
Income (loss) from
 discontinued
 operations            (0.5)       9.5      14.4       3.9      27.3
Loss on disposal of
 discontinued
 operations               -          -      (8.0)        -      (8.0)

                   -------------------------------------------------
Net income (loss)   $  (4.6)   $  12.5   $  16.6   $  31.5   $  56.0
                   -------------------------------------------------
                   -------------------------------------------------

Net income (loss)
 per common share
 from continuing
 operations (basic) $ (0.04)   $  0.02   $  0.08   $  0.24   $  0.29
                   -------------------------------------------------
                   -------------------------------------------------

Net income (loss)
 per common share
 (basic)            $ (0.05)   $  0.10   $  0.14   $  0.27   $  0.46
                   -------------------------------------------------
                   -------------------------------------------------

Adjusted Net Income
 (Loss)             $  (0.3)   $   6.8   $  14.0   $  30.7   $  51.2
                   -------------------------------------------------
                   -------------------------------------------------

Adjusted Net Income
 (loss) per common
 share (basic)      $ (0.01)   $  0.05   $  0.12   $  0.26   $  0.42
                   -------------------------------------------------
                   -------------------------------------------------

Weighted average
 number of common
 shares outstanding
 (millions):          116.5      114.9     113.7     113.8     114.7
                   -------------------------------------------------
                   -------------------------------------------------


FOR FURTHER INFORMATION PLEASE CONTACT:

Mitel Corporation
Jacques Guerette
Corporate Communications
(613) 592-2122
E-mail: jacques_guerette@mitel.com
Website: www.mitel.com
or
Mitel Corporation
Mike McGinn
Investor Relations
(613) 592-2122
E-mail: mike_mcginn@mitel.com