Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

Mitel Corporation. (55PT)

  Print      Mail a friend

Wednesday 25 July, 2001

Mitel Corporation.

1st Quarter Results

Mitel Corporation
25 July 2001

Zarlink Semiconductor (Mitel Corporation) Releases Fiscal 2002 First Quarter
Results

Ottawa, Canada - Zarlink Semiconductor (formerly Mitel Corporation) today
released first quarter results for the Fiscal 2002 period ended June 29, 2001.

As forecasted, revenue for the first quarter was $105.0 million, compared to
$183.8 million for the same period last year, and reflects the continued
downturn of the semiconductor industry.

Adjusted Net Loss (+) for the quarter was better than expected at $8.2 million
or $0.07 per share, excluding the effects of special and excess inventory
charges. This compares to Adjusted Net Income of $28.2 million or $0.24 per
share for the same period last year.

Order backlog at the end of the first quarter was $126.8 million, compared
with $177.9 million at the close of the previous quarter.

Special Charges

During the quarter, Zarlink reviewed its inventory requirements for the next
12 months in light of the current industry slow down and higher channel
inventories. As a result, the company recorded an excess inventory charge in
the first quarter amounting to $45.0 million.

Also during the quarter, Zarlink implemented a restructuring program to reduce
its operating expenses in response to adverse market conditions.  Accordingly,
the company recorded a pre-tax special charge of $53.6 million for the first
quarter and is reducing its global workforce by approximately 439 employees.
The special charge also includes the cost of excess facilities and contract
settlements.

In the first quarter, Zarlink recorded a net loss of $116.1 million,
reflecting principally the excess inventory provisions and restructuring
charge, as well as $15.8 million in amortisation of intangibles.

'The steps we have taken to bring expenses in-line with our sales forecasts
are paying off,' said Patrick J. Brockett, president and CEO. 'While
intelligently controlling costs, we're laying a good foundation for our long
term success. Despite the state of the industry, we continue to aggressively
invest in focused R&D programs and are very optimistic about the future of the
company.'

'During the quarter, Zarlink launched a variety of new products supporting
high-growth opportunities in short-reach parallel fiber optic modules, set-top
boxes, iDTV, tuners, cellular, and gigabit ethernet,' said Brockett. 'We also
allied with market leaders like Agilent, IBM, and AMCC to advance industry
standards or build products offering greater performance, reduced cost or
other features prized by customers.'

Review of Operations

Selling and administrative expenses were reduced by $9.6 million from the
previous quarter and were $26.0 million or 25% of sales for the first quarter.
These expenses were $29.6 million for the same period last year.

Research and development expenses for the quarter were $31.4 million or 30% of
sales.

Gross margin for the first quarter was 49% of sales, excluding excess
inventory charges of $45.0 million, compared to 42% of sales in the previous
quarter.

Fiscal 2002 Outlook

Zarlink continues to aggressively invest in R&D in its portfolio of wired,
wireless and optical communications products and ultra low-power medical
devices. In recent months, the company has taken significant steps to control
its costs and to preserve a strong cash position.

With these and other measures, Zarlink is well positioned to cope with ongoing
uncertainties in the semiconductor industry. At the same time, the company is
initiating time-to-market (TTM) process improvements aimed at reducing TTM by
50% within 24 months.

In the near term, the company expects the industry weakness to continue during
the second quarter of Fiscal 2002. Accordingly, Zarlink is forecasting second
quarter revenue to be on the order of $75 million with an Adjusted Net Loss of
approximately $0.25 per share.

About Zarlink Semiconductor

Zarlink employs its formidable analog, digital and mixed-signal capabilities
to offer compelling products for wired, wireless and optical connectivity
markets and ultra low-power medical applications.

Zarlink is trading as Mitel Corporation on the New York and Toronto stock
exchanges under the ticker symbol 'MLT' until the new legal name of the
company - Zarlink Semiconductor Inc. - is approved at the company's Annual
Shareholders Meeting later today. For more information, visit www.zarlink.com.

(+) 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 amortisation of acquired intangibles,
impairment and 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.

Zarlink's Annual Shareholders Meeting will be held at 10:30am today in the
Drawing Room of the Chateau Laurier Hotel, 1 Rideau Street, Ottawa, Canada.
Analysts and media are invited to attend.

An open conference call for analysts will be held today from 8:30-9:30am EST.
Dial 001-877-793-3800 or 001 416-405-9129. A replay number is 001-800-408-3053
or 001 416-695-5800, passcode 850803 and will be available until August 1st.
The call will also be webcast via www.streetfusion.com and www.newswire.ca.
Analysts attending the AGM can join the call in the L'Orangerie Room at the
Chateau Laurier.

At 12:00, a conference call and press conference for media will be held in the
L'Orangerie Room. The media call number is 001-800-273-9672 or 001
416-695-5806. The replay number is 001-800-408-3053 or 001 416-695-5800,
passcode 850819 and

will be available until August 1st.


                            Zarlink Semiconductor
                         CONSOLIDATED BALANCE SHEETS
                      (in millions of Canadian dollars)
                                 (Unaudited)
                       --------------------------------

                                                     June 29,     March 30,
                                                       2001         2001
                                                  --------------------------
    ASSETS
    ------
    Current assets:
     Cash and cash equivalents                      $  237.1      $  283.7
     Accounts receivable                                67.5          85.5
     Inventories                                        89.8         133.9
     Investment tax credits recoverable                 11.8          15.8
     Future income taxes                                 5.5           1.9
     Prepaid expenses and other                         18.6          23.5
                                                --------------------------
                                                       430.3         544.3

    Long-term receivables                               15.5          15.8
    Long-term investments                               27.2          24.8
    Fixed assets                                       200.1         207.0
    Acquired intangible assets                          23.0          38.1
    Other assets                                         2.5           5.6
                                                 --------------------------
                                                    $  698.6      $  835.6
                                                 ---------------------------
                                                 ---------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    ------------------------------------
    Current liabilities:
     Accounts payable and accrued liabilities      $  148.5       $  146.5
     Income and other taxes payable                     9.0            7.1
     Future income tax liabilities                       -             7.3
     Deferred revenue                                   6.0            5.9
     Current portion of long-term debt                  8.3            9.2
                                                 --------------------------
                                                      171.8          176.0
    Long-term debt                                      4.9            7.6
    Pension liability                                  16.1           17.2
    Future income tax liabilities                       6.7            7.2
                                                --------------------------
                                                      199.5          208.0

    Shareholders' equity:
     Capital stock
      Preferred shares                                 36.2           36.6
      Common shares                                   635.8          635.2
     Contributed surplus                                9.2            9.2
     Deficit                                         (174.6)         (57.7)
     Translation account                               (7.5)           4.3
                                                 --------------------------
                                                      499.1          627.6
                                                --------------------------
                                                   $  698.6       $  835.6
                                                --------------------------
                                                --------------------------

                            Zarlink Semiconductor
                    CONSOLIDATED STATEMENTS OF INCOME (LOSS)
           (in millions of Canadian dollars, except per share amounts)
                                   (Unaudited)
           -----------------------------------------------------------

                                                      Three Months Ended
                                                     June 29,     June 30,
                                                       2001         2000
                                                 --------------------------

    Revenue                                         $  105.0      $  183.8
                                                 --------------------------

    Cost of sales:
     Cost of sales other than amortisation              91.4          73.4
     Amortisation of manufacturing assets                7.4          13.4
                                                ---------------------------
                                                        98.8          86.8
                                                ---------------------------
    Gross margin                                         6.2          97.0
                                                ---------------------------

    Expenses:
     Selling and administrative                         26.0          29.6
     Research and development (net)                     31.4          24.5
     Special charge                                     53.6             -
     Amortisation of acquired intangibles               15.8           0.1
                                                --------------------------
                                                       126.8          54.2
                                                --------------------------
    Operating income (loss) from
    continuing operations                             (120.6)         42.8

    Equity loss from investment in Optenia Inc.         (0.8)            -
    Interest income                                      3.2           3.0
    Interest expense                                    (0.3)         (5.3)
    Debt issue costs                                      -           (0.6)
                                                 --------------------------

    Income (loss) from continuing
    operations before income taxes                    (118.5)         39.9

    Income tax recovery (expense)                        2.4         (12.4)
                                                 --------------------------
    Net income (loss) from
    continuing operations                             (116.1)         27.5
                                                --------------------------

    Loss from discontinued operations                     -           (6.0)
                                                 --------------------------

    Net income (loss) for the period               $  (116.1)      $  21.5
                                                --------------------------
                                                --------------------------

    Net income (loss) attributable to
    common shareholders
     After preferred share dividends               $  (116.9)      $  20.7
                                                --------------------------
                                                --------------------------

    Net income (loss) per common share
    from continuing operations:
     Basic                                         $   (0.94)     $    0.23
                                                 --------------------------
                                                 --------------------------
     Diluted                                       $   (0.94)     $    0.22
                                                 --------------------------
                                                 --------------------------

    Net income (loss) per common share:
     Basic                                         $   (0.94)     $    0.18
                                                 --------------------------
                                                 --------------------------
     Diluted                                       $   (0.94)     $    0.17
                                                 --------------------------
                                                 --------------------------

    Weighted average number of common
    shares outstanding (millions)
     Basic                                            124.6          114.2
                                                --------------------------
                                                --------------------------
     Diluted                                          127.6          119.3
                                                --------------------------
                                                --------------------------

    Percentage of sales:
    Gross margin (excluding excess
    inventory charge of $45.0 in FY02)                   49%            53%
    Selling and administrative                           25%            16%
    Research and development (net)                       30%            13%


                            Zarlink Semiconductor
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                      (in millions of Canadian dollars)
                                 (Unaudited)
                    -------------------------------------

                                                       Three Months Ended
                                                     June 29,     June 30,
                                                       2001         2000
                                                  --------------------------
    CASH PROVIDED BY (USED IN)

    Operating activities:
     Net income (loss) for the period              $ (116.1)      $   21.5
     Amortisation of capital and other assets          28.7           31.1
     Loss on disposal of capital assets                 0.6            2.0
     Loss related to equity investment                  0.8              -
     Investment tax credits                             4.0              -
     Future income taxes                              (11.3)          (2.5)
     Change in pension liability                        0.2            0.1
     Decrease (increase) in working capital            75.0          (51.5)
                                                 --------------------------
      Total                                           (18.1)           0.7
                                                 --------------------------

    Investing activities:
     Change in short-term investments                     -          (38.7)
     Expenditures for capital and other assets        (21.0)         (26.9)
     Proceeds from disposal of capital assets             -            0.6
     Proceeds from sale of prior year
     discontinued operations - net                      2.0             -
     Increase in long-term investments                 (3.1)            -
                                                 --------------------------
      Total                                           (22.1)         (65.0)
                                                 --------------------------

    Financing activities:
     Repayment of long-term debt                       (1.4)         (27.1)
     Repayment of capital lease liabilities            (2.1)         (12.0)
     Dividends on preferred shares                     (0.8)          (0.8)
     Issue of common shares                             0.6            2.6
     Repurchase of preferred shares                    (0.4)             -
                                                 --------------------------
      Total                                            (4.1)         (37.3)
                                                 --------------------------
    Effect of currency translation on cash             (2.3)           0.1
                                                 --------------------------

    Decrease in cash and cash equivalents             (46.6)        (101.5)

    Cash and cash equivalents,
    beginning of period                               283.7          195.5
                                                 --------------------------

    Cash and cash equivalents, end of period       $  237.1        $  94.0
                                                 --------------------------
                                                 --------------------------

                            Zarlink Semiconductor
                      SUPPLEMENTARY SCHEDULES AND NOTE
         (in millions of Canadian dollars, except per share amounts)
                                 (Unaudited)
         -----------------------------------------------------------


    Adjusted Net Income (Loss)
    --------------------------

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


                                                       Three Months Ended
                                                     June 29,     June 30,
                                                       2001         2000
                                                  --------------------------

    Net income (loss) for the period
    as reported                                    $ (116.1)      $   21.5


    Adjusted Net Income (Loss); as adjusted for:
     Excess inventory charge to cost of sales          45.0              -
     Special charge                                    53.6              -
     Amortisation of acquired intangibles              15.8            0.1
     Debt issue costs                                     -            0.6
     Income tax recovery from excess
     inventory charge to cost of sales                 (6.5)             -
     Loss from discontinued operations,
     net of income tax                                   -             6.0
                                                 --------------------------

    Adjusted Net Income (Loss) for the period      $   (8.2)      $   28.2
                                                 --------------------------
                                                 --------------------------

    Adjusted Net Income (Loss) per common
    share (after preferred share dividends)
    - basic                                        $   (0.07)     $    0.24
                                                 --------------------------
                                                 --------------------------

    Product Information (Continuing Operations)
    -------------------------------------------
    Revenue, by product, was distributed as follows:

                                                        Three Months Ended
                                                     June 29,     June 30,
                                                       2001         2000
                                                --------------------------

    Communications Segment:
     Network Access                                $   40.0       $   84.7
     User Access                                       20.0           28.4
     Custom Products                                   30.6           59.1
                                                 --------------------------
    Total Communications revenue                       90.6          172.2
    Medical Segment                                    14.4           11.6
                                                 --------------------------
    Total                                          $  105.0       $  183.8
                                                 --------------------------
                                                 --------------------------


                            Zarlink Semiconductor
                      SUPPLEMENTARY SCHEDULES AND NOTE
         (in millions of Canadian dollars, except per share amounts)
                                 (Unaudited)
         -----------------------------------------------------------

    Geographic Information (Continuing Operations)
    ----------------------------------------------

Revenue, based on the geographic location of Zarlink's customers, was
distributed as follows:


                          Three Months              Three Months
                              Ended        % of        Ended          % of
                          June 29, 2001    Total    June 30, 2000     Total
                          -------------    -----    -------------     -----

    United States            $    33.5      32 %       $   71.6        39 %
    Europe                        38.0      36             53.5        29
    Asia - Pacific                23.1      22             50.7        28
    Canada                         7.4       7              5.7         3
    Other Regions                  3.0       3              2.3         1
                         -------------    -----    -------------     -----
                             $   105.0     100 %       $  183.8       100 %
                         -------------    -----    -------------     -----
                         -------------    -----    -------------     -----

    Information on Business Segments (Continuing Operations)
    --------------------------------------------------------


    Three Months Ended                                  Unallocated
    June 29, 2001               Communications   Medical    Costs      Total
                                --------------------------------------------


    Revenue                       $    90.6     $  14.4    $   -     $ 105.0
    Amortisation of buildings
    and equipment                      12.8         0.1        -        12.9
    Amortisation of acquired
    intangibles                           -           -      15.8       15.8
    Excess inventory charge
    to cost of sales                      -           -      45.0       45.0
    Special charge                        -           -      53.6       53.6
    Segment's operating
    income (loss)                      (9.9)        3.7    (114.4)    (120.6)


                                                        Unallocated
    Three Months Ended
    June 30, 2000               Communications   Medical    Costs      Total
                                --------------------------------------------

    Revenue                       $   172.2     $  11.6    $    -    $ 183.8
    Amortisation of buildings
    and equipment                      21.4         0.2         -       21.6
    Amortisation of acquired
    intangibles                           -           -       0.1        0.1
    Segment's operating income         40.6         2.3      (0.1)      42.8

    Note

    Special Charges

    Inventories

During the quarter ended June 29, 2001, the Company reviewed its inventory
requirements during the next 12 months in light of the current semiconductor
industry-wide slow down and higher channel inventories. As a result of this
review and in the first quarter of Fiscal 2002, the Company recorded an excess
inventory charge to cost of sales amounting to $45.0 for inventories estimated
to be beyond its needs for the next 12 months.

Restructuring

On May 10, 2001, Zarlink's Board of Directors approved a restructuring program
to reduce the Company's manufacturing costs and operating expenses in response
to adverse market conditions. Accordingly, the Company recorded a pre-tax
special charge of $53.6 related to that program in the quarter ended June 29,
2001. The special charge comprises a workforce reduction charge of
approximately $41.4 primarily relating to the cost of severance and benefits
for the termination of approximately 439 employees throughout the world in
Fiscal 2002. In addition, the special charge includes the cost of lease and
contract settlements of approximately $12.3. The Company will employ
approximately 2,000 people worldwide after the restructuring is completed in
Fiscal 2002.

For further information: Jacques Guerette, Corporate Communications, 001 613
270-7110, jacques.guerette@zarlink.com; Mike McGinn, Investor Relations, 001
613 270-7210, mike.mcginn@zarlink.com