For the third quarter of fiscal 2016, total revenue was $85.2 million, compared to $84.7 million in the third quarter of fiscal 2015.
GAAP net loss was $8.7 million, or $0.13 per share, in the third quarter of fiscal 2016, compared with a GAAP net loss of $2.6 million, or $0.04 per share, in the third quarter of fiscal 2015. The year over year reduction in profitability is due primarily to the acquisition of Corvisa which closed in January 2016.
“In the fiscal third quarter we accelerated both cloud bookings and hosted revenue, with particular strength from mid-market and enterprise customers” said Don Joos, president and CEO of ShoreTel. “We continued to execute on our five catalysts for growth as we introduced new ShoreTel Connect features, expanded our cloud geographic footprint, and launched the premises to cloud migration program to leverage our installed base to drive hosted revenue growth.”
Hosted revenues of $32.8 million in the third quarter of fiscal 2016 were up 22 percent year-over-year and 7 percent sequentially. Non-GAAP hosted gross margin increased to 53.3 percent in the third quarter of fiscal 2016, representing an improvement over the 49.8 percent in the third quarter of fiscal 2015.
Product revenues of $33.9 million in the third quarter of fiscal 2016 were down 14 percent year-over-year and down 17 percent sequentially. Non-GAAP product gross margin was 67.1 percent in the third quarter of fiscal 2016, compared with 65.2 percent in the third quarter of fiscal 2015. GAAP product gross margin for the third quarter of fiscal year 2016 was 67.1 percent, compared with 60.4 percent in the third quarter of fiscal year 2015.
Support and services revenues of $18.5 million in the third quarter of fiscal 2016 were up 1 percent year-over-year and down 2 percent sequentially.
Recurring revenues, which consist of all hosted and related services revenue plus support revenues, represented 58 percent of total revenue in the third quarter of fiscal 2016 and reached an annualized value of $198 million; an increase of 15.2 percent compared to the third quarter of fiscal 2015.
As of March 31, 2016, the company had $100.0 million in cash, cash equivalents and short-term investments and no outstanding debt. The company generated $2.1 million in cash flow from operations in the quarter ended March 31, 2016.