Mitel's financial statement for Q2 ended June 30th showed the addition of 53,000 recurring cloud seats added in the quarter, up 98% year-over-year.
Strong cash generation enabled another voluntary prepayment of $25 million against credit facility.
"Mitel emerged from the second quarter with record reported quarterly revenue and global market momentum that enabled us to beat consensus and deliver consistently strong financial results through the first half of the year," said Richard McBee, Chief Executive Officer.
In the second quarter Mitel continued to see strong cloud growth, installing 128,000 new cloud seats during the quarter including the impressive 53,000 recurring cloud seats, taking Mitel's total installed cloud base to 754,000, up 75% year-over-year.
Total revenue increased 97% to $288.7 million from second quarter 2013, primarily as a result of the Aastra acquisition.
Gross margins were 52.6%, down from 55.0% in the prior year, reflecting the acquisition of Aastra, which was a lower gross margin business.
Net income was $0.8 million compared to net income of $2.7 million in the prior year, driven principally by the integration costs related to the acquisition of Aastra.
Adjusted EBITDA was $38.8 million compared to $21.4 million in the year ago period, due to a combination of EBITDA growth from the legacy Mitel business and EBITDA resulting from the acquisition of Aastra.
Non-GAAP net income for the second quarter of 2014 was $22.2 million, or $0.21 per diluted share, compared to $9.9 million, or $0.18 per diluted share in the second quarter of 2013. The number of non-GAAP weighted-average common shares outstanding was 103.7 million and 56.3 million, respectively.
Operating cash flow for the quarter ended June 2014 was $25.8 million compared to $25.3 million in the quarter ended June 2013.
Cash and cash equivalents as of June 30, 2014 were $134.2 million.