ShoreTel loss widens on stock compensation costs


ShoreTel loss widens on stock compensation costs

Alex Scroxton

Net losses at UC specialist ShoreTel widened year-on-year to $3.6m in the firm's fiscal Q1, after it incurred stock-based compensation expenses of $2.8m.

Excluding charges and adjustments, ShoreTel still made a small loss of $200,000, but growth in record net sales of $44.3m - up 5% sequentially and 31% on the year-ago-quarter - and GAAP gross margins - up to a record 66.7% - tempered the bad news.

Interim boss Don Girskis, holding the fort after CEO John Combs stepped down over the summer, said that the sales record demonstrated ShoreTel's ability to "execute very effectively on its plan".

"Our acquisition of Agito Networks represents a key strategic investment for ShoreTel, allowing us to accelerate and expand our enterprise mobility strategy," he added.

Recent Synergy Research has reported that ShoreTel is seeing quarter-over-quarter market share gains in both SMB and enterprise space, and the companyis looking to expand in both these sectors in the coming months.

Sales for the second quarter of ShoreTel's fiscal 2011, which closes at the end of December, are expected to be approximately $46m.

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