ShoreTel’s CEO Sees Momentum Building
ShoreTel’s third fiscal quarter financial report showed solid revenue growth, the introduction of several new products and a record number new customers, indicating that the company is gaining momentum for the coming quarters, according to ShoreTel CEO Peter Blackmore.
“Our continued delivery of outstanding customer experience in both our cloud and premise businesses contributed strongly to our results,” Blackmore said. “Our percentage of recurring revenue business continues to increase, which improves the quality and predictability of our business.
“I am confident about the prospect of increasing our profitability in Q4 and in FY2014, driven by sensible growth assumptions and prudent spending,” he said.
For the quarter ending March 31, 2013, ShoreTel reported revenue of $78.3 million, up 39 percent from the same quarter last year. The non-GAAP net loss for the third quarter was $0.3 million, or a loss of $0.01 per share, compared with a non-GAAP net loss of $1.5 million, or a loss of $0.03 per share, in the third quarter of fiscal 2012.
Revenue from the premise business was $60.1 million for the quarter, up nine percent from the prior year’s quarter. ShoreTel Sky’s cloud-based business showed revenue of $18.2 million, up twenty eight percent over the third quarter of fiscal 2012.
“We continue to see benefits from further integration of our cloud and premise businesses,” Blackmore said. “For example, we have made progress with the integration of our engineering function in conjunction with the development of a combined, strategic roadmap for both cloud and premise. As we move forward, we will develop applications that work for both premise and cloud – therefore we build once and save significant cost over the long-term.”
Blackmore said ShoreTel booked 232 new ShoreTel Sky customers in the quarter, a record, as well as 1,100 new premise customers. In addition, ShoreTel Sky hit a major milestone in the quarter, surpassing 100,000 seats under management.
ShoreTel also offered a series of new products in the quarter, including ShoreTel Mobility 6 and the latest release of ShoreTel Conferencing, which enables customers to transform the Apple iPad into a business communications tool, and new version of Contact Center with Enterprise Contact Center 8, with enhancements to the email and chat channels within the contact center.
Also in the quarter, TMC, a global, integrated media company, awarded ShoreTel Sky Mobility with its 2012 Internet Telephony Product of the Year. TMC noted that the award was based on the product’s innovation and quality, as well as its ability to provide solutions to real business communications challenges.
Blackmore listed several large, new ShoreTel customers, including Box.net, an online file sharing and cloud content management service for enterprise companies. Box.net selected ShoreTel Sky for its two locations with more than 500 users due to ShoreTel’s ability to provide a cloud-to-cloud integration with Salesforce.com and simple business analytics for contact center and enterprise users.
Compuware, a worldwide software and services provider, recently began installing a ShoreTel premise system for its 10 sites. The solution, purchased through a ShoreTel partner, CenturyLink, includes phones, softphones and SIP integration. They chose ShoreTel over Avaya and Cisco because of our lower total cost of ownership, ease of administration and easy expansion.
And in the government sector, the County of Maui, selected ShoreTel for its VoIP implementation planned for 3,500 users in 62 sites. Their solution includes ShoreTel conferencing as well as custom applications by our professional services team.
Ultimately, Blackmore said, the customers determine performance, and according to that marker, ShoreTel is succeeding. “Our continued delivery of outstanding customer experience in both our cloud and premise business contributes strongly to our results,” he said. “In summary, we are entering our fourth quarter with strong momentum.”