Mitel has announced its financial results for the third quarter ended September 30th, 2014.
Total revenue increased 102% to $272.4 million from third quarter 2013, primarily as a result of the Aastra acquisition.
Non-GAAP net income for the third quarter of 2014 was $19.0 million, or $0.18 per diluted share, compared to $8.1 million, or $0.14 per diluted share in the third quarter of 2013.
The number of non-GAAP weighted-average common shares outstanding was 104.7 million and 56.6 million, respectively.
Adjusted EBITDA was $34.6 million compared to $19.2 million in the year ago period, due primarily to a combination of EBITDA growth from the legacy Mitel business and EBITDA resulting from the acquisition of Aastra.
Richard McBee, President and Chief Executive Officer, said: "Solid execution in Q3 enabled us to deliver another strong quarter across the board, beating consensus forecasts for revenues and earnings.
"Our cloud segment continues to rapidly grow with year-over-year recurring seat growth of 111%, and for the first time ever, cloud revenue represented more than 10% of Mitel's total quarterly revenues.
"I am pleased with the continued superb execution of our integration program. We are clearly seeing the benefits of our new economies of scale, and our synergies realiaed to date are running ahead of plan."
In the third quarter Mitel continued to see robust cloud growth, installing 107,000 new cloud seats during the quarter, including over 49,000 recurring cloud seats. Mitel's recurring cloud seats increased to 245,000, up 111% and its total installed cloud base increased to over 860,000 seats, up 73% year-over-year.
Steve Spooner, Chief Financial Officer, added: "Our commitment to focus on integration and early realisation of synergies is driving attractive performance improvements.
"We generated solid year-over-year improvement in gross margins, EBITDA and non-GAAP EPS, as well as strong operating cash flow, ending the quarter with a $120 million cash balance.
"Given our 200 basis point year-over-year improvement in gross margin and the progress on our operating expense rationalisation to date, we are confident in our ability to exceed our $20 million synergy target for the current year, and meet our synergy targets for 2015."