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
  • 7 Ways the Wrong Phone System Can Haunt Your Business

    The wrong phone system could be haunting your business - and we’re talking about problems more serious than ghosts and ghouls. From increased costs to issues with scaling, we’ve identified seven important ways that a less than ideal phone system could be holding you back. You’ll be surprised at how much of a difference this can make to your bottom line too. more

  • Ditch Your Fax Servers

    An in-house fax server gives an IT department centralized management and monitoring over the entire enterprise's faxing. This can help your company track usage and better maintain records for auditing and record keeping. However, there are serious drawbacks that come with utilizing an in-house fax server solution and these range from security to cost-prohibitive pricing. more

  • The IT Manager's Survival Guide

    As an IT manager, maintaining physical fax servers and infrastructure is not a high priority. However, fax capability remains a business need simply because chances are your industry is dependent on its security. What if there was a way to reduce the amount of time spent handling fax complaints and maintaining physical servers? And this way took into account security, cost savings, and freed up your IT resources. Would you be interested? more

  • VoIP: Your New Secret Weapon for a Strong Year End

    As the end of 2017 nears, you may be feeling pressure to make sure you close the year out strong.If you’ve been sitting on the fence regarding VoIP, this may be the perfect time to switch. VoIP options had never been better or more full-featured than they are now, and it may be just the thing your business needs to see a productivity and profitability boost. more

  • Is Your Phone System Stealing Profits?

    Having the wrong phone system can dramatically cut into your profits. Despite this, many businesses just sign up for a plan or platform that seems ‘good enough’. If you haven’t carefully considered your options and the included features, there’s a very good chance that you are leaving money on the table in some way. more

Related Articles