"We're recognized for our leadership in the move to a software-business model. I take a lot of pride in that."

Today, Mitel pulls in about US$648 million a year with a staff of 2,358.

Its latest quarterly results, though, were lower than expected. Revenue for the three months ending July 31 was US$160 million, about two per cent less than the strong fourth quarter. The company had hoped momentum from that quarter would continue. Net income was $6.8 million.

In a conference call with financial analysts, Smith blamed "caution" in the SMB market, where limited access to credit is causing purchasing delays or reductions in capital spending. Revenue for telecommunications products was down in Europe, and flat in the U.S, but up in Canada and Asia Pacific regions.

Mitel is adding new customers, system integrators and resellers, Smith emphasized.