ShoreTel Reports Financial Results for Third Quarter Fiscal Year 2011

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ShoreTel, the provider of IP phone systems with integrated unified communications (UC), has announced financial results for the third quarter of fiscal year 2011, which ended March 31, 2011.

For the third quarter of fiscal year 2011, revenue was $51.6 million, up 8 percent sequentially from the second quarter of fiscal year 2011 and a 39 percent increase from the third quarter of fiscal year 2010. GAAP net loss was $(2.4) million, or $(0.05) per share, compared with a GAAP net loss of $(4.5) million, or $(0.10) per share, for the third quarter of fiscal year 2010. Excluding stock-based compensation expenses of $2.8 million, amortisation of acquisition-related intangible assets of $0.2 million and related tax adjustments, the non-GAAP net income for the third quarter of fiscal year 2011 was $0.6 million, or $.01 per share, compared with a non-GAAP net loss of $(1.7) million, or $(0.04) per share, for the third quarter of fiscal year 2010.

GAAP gross margin for the third quarter of fiscal year 2011 was 68.0 percent, compared with 64.9 percent during the same quarter last year. Non-GAAP gross margin, which excludes stock-based compensation expenses, amortisation of acquisition-related intangible assets and related tax adjustment, was 68.6 percent in the third quarter of fiscal year 2011, up from 67.2 percent in the prior quarter and 65.6 percent during the same quarter last year.

As of March 31, 2011, the company had $102.6 million in cash, cash equivalents and short-term investments with no debt.

“ShoreTel accelerated its strong growth during the third fiscal quarter, increasing revenue 39 percent year-over-year and achieving non-GAAP profitability one quarter earlier than expected,” said Peter Blackmore, president and CEO of ShoreTel. “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.

“To put our revenue growth into perspective, ShoreTel’s quarterly revenue jumped from $40 million to $50 million in just three quarters, a fraction of the time it took the company to pass from $30 million to $40 million,” Blackmore added.