ShoreTel Hosted Revenues Make Impact

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ShoreTel today announced financial results for the second quarter of fiscal 2015, which ended December 31, 2014.

For the second quarter of fiscal 2015, total revenue was a record $90.9 million, an increase of 8 percent compared to the second quarter of fiscal 2014. Non-GAAP net income was $5.4 million, or $0.08 per diluted share. This compares with a non-GAAP net income of $3.2 million, or $0.05 per diluted share, in the second quarter of fiscal 2014. GAAP net loss was $6.8 million, or $0.11 per diluted share, in the second quarter of fiscal 2015, compared with a GAAP net loss of $0.9 million, or $0.02 per share, in the second quarter of fiscal 2014.

“We’ve continued our business momentum with investments in growth while also improving our key financial metrics. The acceleration of our hosted bookings in the December quarter resulted in 33 percent growth for calendar year 2014, showing the effectiveness of the strategic actions we launched a year ago,” said Don Joos, president and CEO of ShoreTel. “We’ve made continued progress in the development of our common platform, which we expect to introduce at our partner conference in April.”

Recurring revenues, which now consist of all revenue from hosted and related services plus support revenues from support and services, represented 46 percent of total revenue in the second quarter of fiscal 2015 and reached an annualized value of $166 million; an increase of 17 percent compared to the second quarter of fiscal 2014.

Hosted revenues of $25.8 million were up 19 percent year-over-year and 3.5 percent sequentially.

As of December 31, 2014 the company had $75.7 million in cash, cash equivalents and short-term investments and no outstanding debt. The company generated $11.8 million in cash flow from operations in the quarter ended December 31, 2014.