Paul Singer Raises Mitel Networks Corporation (MITL) Stake To 6.7%

At the end of April this year, Mitel Networks Corporation announced the completion of its acquisition of Mavenir Systems Inc. for $650 million in cash and stock, which served as a move towards growing the company further on rather than achieving synergies in its existing cloud services business. The transaction led to the creation of a global leader in converged IP communications for enterprises, service providers and mobile operators. Mavenir specialized in supporting mobile service providers with voice, video, messaging, and mobile core services over 4G-LTE cellular networks, so its acquisition gave Mitel the opportunity to capitalize on increasing demand for 4G LTE services. However, it might take a little while until Mitel exploits all the benefits of the acquisition, which might actually serve as a significant boost for the company’s growth.

In the meantime, Mitel Networks Corporation delivered non-GAAP revenues of $292.3 million for the second quarter, compared to $291.7 million reported for the same period a year ago. Simultaneously, the company’s non-GAAP earnings per share came at $0.18, compared to $0.21 posted a year ago. It’s also worth noting that Mitel anticipates revenues in the range of $275 million to $300 million during the third quarter and non-GAAP EPS is expected to be in the range of $0.07 to $0.12.

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