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
  • Are You Using These 5 VoIP Features?

    In large part, the success of your business depends on the strength and reliability of your team’s many communication networks—this includes your Voice over Internet Protocol system (VoIP). more

  • Video Conferencing Best Practices

    Video conferencing is quickly becoming one of the most important communication channels for both small and big businesses. As more businesses turn to this technology, expectations about the experience are also rising. It’s not enough to just offer video conferencing as a communication method. You also need to meet minimum audio and visual standards, and there’s even proper etiquette to consider. more

  • Go Mobile and Increase Employee Productivity

    The Bring Your Own Device (BYOD) and Voice over Internet Protocol (VoIP) tech trends now allow people to work whenever, wherever, and however they want—mobility makes it happen. more

  • [Infographic] How to Select a Phone System in 10 Steps

    Choosing the perfect phone system for your business is no small task …. Depending on the size of your company, the industry in which you work, and the specific needs your phone system will be required to meet, any number of solutions could get the job done. more

  • 2017 Business VoIP Cost Guide

    Reducing expenses is one of the main reasons that businesses switch from traditional office phone systems to VoIP technology. But many people rush this decision and end up spending more than they need to. The costs of implementing a new VoIP system can increase quickly, especially if you don’t strategically plan for it ahead of time. more

Related Articles