ShoreTel CEO Don Joos Outlines Strong Quarterly Financial Report
ShoreTel CEO Don Joos on Wednesday announced financial results for the company’s first quarter of its fiscal year 2014, which showed record non-GAAP profit of $4.0 million1 and outlined plans for ShoreTel’s continued growth.
Revenues for the quarter totaled $84.3 million, an increase of 12 percent compared to the first quarter of fiscal 2013.
ShoreTel Sky, the hosted VoIP and cloud unified communications services arm of the company, posted revenues of $20.7 million for the quarter, up 8 percent sequentially and 32 percent year-over year. Revenues for ShoreTel’s premise business of $63.5 million represented a 7 percent increase year-over-year and a 4 percent decrease sequentially.
“Clearly, I’m very pleased with these financial results as it demonstrates we are executing against our business plan, leveraging our prior investments, generating meaningful profits which drive cash flow while still investing in a solid foundation for our long-term success,” Joos said in a conference call.
Joos noted that the announcement of ShoreTel’s quarterly report was the first he has hosted since he was named CEO by the ShoreTel Board of Directors in August.
Industry analysts endorsed ShoreTel’s revenue and income gains, with UCStrategies commentator Dave Michels tweeting on Wednesday, “ShoreTel blows out the quarter, new records set.”
Joos outlined ShoreTel’s near-term plans for analysts during his conference call.
“We are committed to rapidly growing our cloud business and becoming a market leader in the unified communication-as-a-service space,” he said.
ShoreTel, he said, is planning on achieving significant growth as it continues to merge its cloud- and premised-based operations.
“We have the assets in place to achieve our growth objectives,” Joos said. “Specially, we have a large premise install customer base for potential cross-sell opportunities, and an established, mature channel partner network which is just starting to contribute to cloud bookings. We are in the final stages of a beta program to enable our partners to close cloud sales opportunities.
“In addition, current members of our premise sales team will soon begin to carry a cloud bookings quota,” Joos added. “This expanded sales effort should further accelerate our cloud bookings growth in the first half of the calendar year and provide increased revenue momentum heading into our fiscal year 2015.”
1Non-GAAP net income excludes stock-based compensation charges, amortization of acquisition-related intangibles, other charges and related tax adjustments.