ShorTel Posts Q1 2013 Results: Strong Growth in Cloud, Premise Divisions
ShoreTel (News - Alert) — provider of unified communications platforms, including business phone systems, applications and mobile UC solutions — recently posted financial results for the first quarter of its 2013 fiscal year. While the company did post a net loss for the quarter, consolidated revenue was up.
Non-GAAP net loss for this quarter ended September 30, 2012 was $2.1 million, excluding stock-based compensation charges, amortization of acquisition-related intangibles, other charges and related tax adjustments. GAAP net loss was $8.0 million. However, consolidated increased 39 percent from the first quarter of fiscal 2012 to reach $75 million.
Peter Blackmore, president and CEO of ShoreTel, was very positive about these results, stating: "I am increasingly convinced in the potential of the UC market and that ShoreTel's future is bright. Our cloud business delivered impressive growth this quarter, and together with our robust premise business, ShoreTel offers a unique choice to customers for a cloud, premise or mobile UC solution. Our recent success speaks for itself."
Indeed, ShoreTel's premise business grew 10 percent from Q1 2012, with revenue reaching an all-time high internationally, up 19 percent from that same period. Meanwhile, market share in the U.S. enterprise IP telephony market improved significantly from 7.3 percent in March 2012 to 8.1 percent in June.
The company's cloud division, meanwhile, saw strong revenue growth of 10 percent sequentially over the June 2012 quarter. Furthermore, the number of seats deployed increased 36 percent over the same period in 2012.
During this quarter, ShoreTel was also the recipient of a number of industry awards, being named the winner of the Midsize Enterprise Summit (MES) West 2012 Xcellence Awards in the categories of Best Midmarket Software Solution, Best Demonstration of ROI, and Best Execution of a Midmarket IT Solution.
In light of ShoreTel's success, it's hard not to recall the words of Blackmore from his keynote address at ITEXPO West 2012 earlier this month: “Our industry will see more change in the next 20 months than we have seen since the introduction of voice over IP (VoIP). The UC industry is at an absolute inflection point!”
Edited by Brooke Neuman