Important Message to ShoreTel Customers and Shareholders
Dear ShoreTel Customers and Shareholders,
I felt it was important to address the market’s reaction to our guidance announcement yesterday.
We believe this week’s news regarding the revenue miss for the quarter ending December 2007 should by no means overshadow our significant achievements in 2007 and our many opportunities for 2008. Our preliminary CY 2007 revenue was a new ShoreTel record and approximately 50 percent higher than our CY 2006 results, a growth rate well ahead of the overall industry’s 20-30 percent pace. In addition, our preliminary December 2007 quarter revenue was approximately 35 percent higher than the December 2006 quarter. We continue to have a solid balance sheet, backed by approximately $100 million cash in the bank.
Our recent awards from Deloitte, Inc. Magazine and the San Jose Business Journal recognizing our revenue growth are a testament to our focus on growing our business. ShoreTel is the world’s fastest growing provider of distributed unified communications solutions and continues to deliver the industry’s highest level of customer satisfaction. For the fourth year in a row, Nemertes' customer satisfaction survey ranked ShoreTel number one in every category.
ShoreTel also won the Customersat.com award and the Best-in-Class for Customer Service from ContactCenterWorld.com.
ShoreTel's products also continue to gain recognition and win industry awards; Best in VoiceCon '07 was the latest in a series. Thanks to our continued focus on delivering best-in-class product, 2007 was no exception; new product introductions included a family of high-density/small footprint switches, color phones, Mobile Call Manager, expanded international native trunking support, and numerous professional services integrations.
Looking to the year ahead, we believe our opportunity is bright. We have an exciting pipeline of new products that will be introduced throughout the year.
Stay tuned for more updates from ShoreTel.
All the best,
John W. Combs
President & CEO