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Mitel Networks (MITL), a Canadian provider of integrated communications solutions for the small-to-medium sized enterprise market, debuted on the NASDAQ on Wednesday April 21. Shares priced at $14, below the expected range of $18-$20 per share.

Business Overview (from prospectus)

We are a leading provider of integrated communications solutions focused on the small-to-medium sized enterprise, or SME, market. We also have a strong and growing presence in the large enterprise market with a portfolio of products that supports up to 65,000 users. Our Internet Protocol, or IP, based communications solutions consist of a combination of IP telephony platforms, which we deliver as software, appliances and desktop devices, and a suite of unified communications and collaboration, or UCC, applications that integrate voice, video and data communications with business applications. We believe that our solutions, which can include associated managed and network services, enable our customers to realize significant cost benefits and to conduct their business more effectively.

Offering: 10.5 million shares at $14 per share. Net proceeds of approximately $147 million will be used to repay debt and fund working capital.

Lead Underwriters: BofA Merrill Lynch (BAC), J.P. Morgan (JPM), UBS Investment Bank (UBS)

Financial Highlights:

Revenues in the first nine months of fiscal 2010 decreased 14.1% to $484.0 million compared to $563.7 million in the first nine months of fiscal 2009, with telecommunications revenues decreasing 16.1% to $427.2 million from $509.3 million, which was partially offset by an increase in network services revenues of 4.4% to $56.8 million from $54.4 million. Our revenues in fiscal 2009 and fiscal 2010 have been adversely affected by the global recession... In the third quarter of fiscal 2010 gross margin increased by 1.9% over the third quarter of fiscal 2009 [from 46.2 % to 48.3 %]. In the first nine months of fiscal 2010 gross margin increased by 2.1% over the first nine months of fiscal 2009... In the third quarter of fiscal 2010 R&D expenses decreased by $0.6 million, and went from 8.1% of total revenues in the third quarter of fiscal 2009 to 8.0% of total revenues in the third quarter of fiscal 2010... In the third quarter of fiscal 2010 we reported operating income of $12.2 million compared to an operating loss of $11.3 million in the third quarter of fiscal 2009, a 108% improvement.

Competitors:

We compete against many traditional IP communications vendors, including in particular Avaya Inc. and Cisco Systems, Inc. (CSCO), as well as Aastra Technologies Limited (AATSF.PK), Alcatel-Lucent S.A (ALU)., NEC Corporation (NELTY.PK), Panasonic Corporation (PC), ShoreTel (SHOR), Inc., Siemens Enterprise Networks (SI) and Toshiba Corporation (TOSBF.PK).

Additional Resources:

Source: Mitel Networks' IPO Disappoints