ShoreTel 3rd Quarter Results, Better Than Expected

Revenues Increase 39%

By Sheila Shanker
Updated: May 05, 2011

ShoreTel 3rd Quarter Results, Better Than Expected

ShoreTel, known as SHOR in the NASDAQ, has released better than anticipated financial results for the third quarter of 2011. ShoreTel, a leading producer of IP based phone systems, reported revenues at 51.6 million -- an increase of 39% on year-over-year basis. Wall Street had predicted revenues at $49.8 million, which ShoreTel surpassed.

The company has forecasted revenues for the fourth quarter between $53 and 56 million, while Wall Street originally had estimated revenues at  $53.6 million. CEO Peter Blackmore in an interview with Forbes Magazine on April 2011 pointed out that ShoreTel achieved profitability a quarter earlier than expected. He said that the firm will continue on a profitable mode through 2012 with revenue growth of at least 20%.

Blackmore talked about a small decline in gross margins in the near future due to expansion with distribution partners and steady growth in foreign business. He noted that ShoreTel has been investing in its own growth, increasing the number of quota-sales people by 39% over the last three quarters. The plan is to increase this area by 50% at the end of June. The firm also plans to keep investing in R&D to remain competitive in the market.

It's interesting to note that the earthquake in Japan has increased the demand for ShoreTel's components, which had been purchased earlier, when a higher revenue level was forecasted. Blackmore indicated that the supply situation is very stable through September with no disruptions foreseen.
 

Featured Research
  • Why Your Educational Institution Needs to Implement VoIP

    VoIP makes a lot of sense for educational institutions—and it’s not just because of the substantial cost savings. Other benefits include increased efficiency and integration options. Emergency responsiveness can even be improved. more

  • Is Your Phone System Meeting the Needs of Your Workforce?

    When was the last time you evaluated the performance of your current business phone system? For most people, the answer is too long ago. Phone systems are one of the most overlooked tools in business, even though they’re also one of the most important in terms of employee productivity. more

  • Why are Companies Still Using PBX?

    For years, all kinds of businesses depended on Private Branch Exchange (PBX) phone systems to help facilitate direct, line-to-line communication. Over the course of the past decade, however, Voice over Internet Protocol (VoIP) technology quickly became the go-to resource for brands. more

  • Top 15 Reasons You Should Upgrade to VoIP

    While more businesses make the switch to VoIP every single day, there are also many that choose to stay with the system they are used to.The rationale is almost always the same. You don’t want to shake things up when what you are already using is working. more

  • [Infographic] 16 Mistakes to Avoid When Buying a Phone System

    Choosing a phone system for your business isn’t as easy as it looks. Most people learn this the hard way. You choose a new system, and everything seems fine. Until it isn’t. In hindsight the problems always seem obvious, yet countless businesses fall into the same traps every year. more

Related Articles