Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, August 15, 2014

Article Excerpt

MITEL NETWORKS, $10.80, symbol MNW on Toronto, has reported its second quarter of results that include Aastra Technologies, a Stock Pickers Digest recommendation Mitel acquired in a friendly takeover on January 31, 2014. Aastra shareholders received cash and Mitel shares. During the quarter, Mitel’s revenue rose 96.9%, to $288.7 million from $146.6 million a year ago (all figures except share price in U.S. dollars). Most of the increase came from Aastra. Excluding one-time items, earnings jumped 124.2%, to $22.2 million from $9.9 million. However, earnings per share rose just 16.7%, to $0.21 from $0.18, as the company issued new shares to pay for Aastra. Aastra develops and markets products and systems for accessing communication networks, including the Internet. Its technology is centred on business telephone systems and includes products that integrate land lines and mobile phones. Mitel operates in the same market as Aastra. It sells hardware but is focusing more on software, including call centre and video-conferencing products. It is increasingly moving…