Shares Of Mitel Higher Following Encouraging Q4 Guidance Update

Shares of Mitel Networks Corp MITL were trading higher by nearly 7 percent early Friday morning after the company revised its fourth quarter guidance and offered a business update.

Mitel announced after Thursday's market close it will make a $25 million payment against its existing credit facility as part of a commitment to allocate surplus cash reserves to lower its debt load.

"Mitel runs a disciplined business model that benefits from rigorous operational execution and synergies being achieved through our acquisition integration programs," said Steve Spooner, Chief Financial Officer for Mitel. "Our solid execution through the fourth quarter has allowed the business to generate cash in excess of our immediate working capital needs which is enabling us to make a voluntary debt reduction payment of $25 million."

Mitel also updated its fourth quarter guidance and expects to earn $0.27 to $0.28 per share on revenue of $330 million to $335 million.

Mitel previously guided its fourth quarter earnings to a range of $0.22 to $0.27 per share on revenue of $315 million to $340 million.