ShoreTel bangs mobility drum, but posts another loss

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ShoreTel bangs mobility drum, but posts another loss

Alex Scroxton

ShoreTel CEO Peter Blackmore has vowed an aggressive partner recruitment drive as the company targets increased sales of its mobility unified comms solutions into the Avaya and Cisco installed base.

Speaking to analysts on a conference call marking the vendor's Q4 results, Blackmore said ShoreTel planned to exploit the exploding smartphone market by "tripling our spend on mobility R&D.

"ShoreTel Mobility is particularly unique [in] that it is PBX agnostic," said Blackmore. "We will support this effort with a new dedicated sales team that will target large opportunities and work with our mobility partners to successfully fulfill and install these systems."

For the final quarter of its financial 2011, ShoreTel turned in sales of $56.5m (£34.7m), up 10% sequentially and 34% year-on-year. Full year revenues were up 35% over 2010 to $200.1m.

However the UC vendor was unable to convert this sales increase into GAAP net profitability as it had hoped, booking a quarterly net loss of $1.7m, an significant improvement on this time last year.

For the 12 months to 30 June, ShoreTel made a GAAP net loss of $11.5m, a figure that included over $11m worth of stock-based compensation expenses and $1m of amortisation expense related to purchased intangibles and costs relating to stock-based compensation from 2010.

The gross profit figures looked rosier, however, up 65% for the quarter and 66% for the full year.

Conference call courtesy: Seeking Alpha


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