Mitel Corp., Kanata, Ontario, today said itssemiconductor sales reached $162.1 million in the fiscal quarter,
ended Sept. 25, accounting for 45% of the company's total
revenues in the three-month period. Mitel's chip business
jumped 123% in the quarter compared to a year ago as a result
of the company's $225 million acquisition of the Plessey
While Mitel's semiconductor business is growing, it has seen
some delays in chip sales of some products, and revenue growth
has been negatively impacted by a more competitive
marketplace, said Kirk K. Mandy, president and CEO of the
Canadian telecommunications systems supplier.
"I am pleased, however, with the continued operating
improvements in Mitel's U.K. semiconductor operations," he said,
referring to the acquired Plessey operations.
Overall, Mitel reported sales in its second fiscal quarter grew
78% to a record $364.1 million compared to $205.0 million in the
period last year. However, its net income dropped 45% to $12.8
million vs. $23.3 million last year because of a $8.8 million charge
related to the consolidation of Plessey Semiconductor.
Business communications systems sales totaled $202.0 million in
the quarter, up from $132.4 million in the quarter last year.
Consequently, 55% of Mitel's revenues come from system sales
vs. 65% in the quarter last year.