ShoreTel moves to plug supply chain gap

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ShoreTel moves to plug supply chain gap

Alex Scroxton

Unified comms vendor ShoreTel is moving to plug an emerging gap in the supply chain relating to its IP phone equipment as a result of the Japanese earthquake.

CFO Mike Healy said that "based on current projections, we appear to have an adequate supply of inventory all the way through September 2011".

"For those individual phone parts affected we are using other vendors to fill the supply void in making spot purchases. I do not expect these actions to have a material negative impact on our gross margin," he added.

For its third fiscal quarter, which closed at the end of March, ShoreTel revealed net revenues of $51.6m (£31.16m), up 8% sequentially and 39% year-on-year.

Non-GAAP net income was $600,000, reversing a non-GAAP net loss of $1.7m this time last year, and even though the company once again failed to book a GAAP net profit - losing $2.4m in Q3 - CEO Peter Blackmore hailed the achievement of non-GAAP profitability earlier than previously forecast.

"Results were driven by strength among our core customers and carrier partners and revenue from major accounts. Additionally, ShoreTel won a notable new partnership with Vodafone in Europe," he said.

Responding to questions on the quarterly analyst call, Blackmore said he was seeing an increase in reseller partners coming to the firm.

"We had a record recruitment for VARs in the last quarter. We don't have a target because the distributors are going to be responsible for the smaller partners.

"We're then focused on recruiting larger partners who can really help us to good system integration and sell to larger customers. It's more a quality gain than a numbers gain," he said.


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