ShoreTel Reports Financial Results for First Quarter of Fiscal Year 2013
“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. We have continued to gain significant market share in the U.S. Enterprise IP telephony market, we have made great progress in the integration of our cloud division, and our international business had its second best quarter in company history.”
- Peter Blackmore, president and CEO of ShoreTel.
Today we announced financial results for the first quarter of fiscal 2013.
For the quarter-ended Sept. 30, 2012, consolidated revenue was $75.0 million, an increase of 39 percent from the first quarter of fiscal 2012. The non-GAAP net loss for the first quarter was $(2.1) million, or $(0.04) per share, which excludes stock-based compensation charges, amortization of acquisition-related intangibles, other charges and related tax adjustments. This compares with a non-GAAP loss of $(1.2) million, or $(0.02) per share, in the first quarter of fiscal 2012.
- GAAP gross margin for the first quarter of fiscal year 2013 was 61.2 percent, compared with 65.9 percent in the first quarter of fiscal year 2012.
- Non-GAAP gross margin for the first quarter of fiscal year 2013, which excludes stock-based compensation charges, amortization of acquisition-related intangibles and other charges, was 62.9 percent, compared with 66.7 percent in the year-ago quarter.
- GAAP net loss was $(8.0) million, or $(0.14) per share, in the first quarter of fiscal year 2013, compared with a GAAP net loss of $(4.6) million, or $(0.10) per share, in the first quarter of fiscal 2012.
- As of Sept. 30, 2012, the company had $55.1 million in cash, cash equivalents and short-term investments, and generated $3.1 million in cash flow from operations in the quarter.
The company’s premise business grew 10 percent from the first quarter of fiscal 2012. Revenue from the company’s international locations reached an all-time high of 14 percent of its premise revenue in the quarter and was up 19 percent over the year-ago quarter. Additionally, according to Synergy Research, the company’s market share of the U.S. Enterprise IP Telephony market showed one of its largest improvements in the company’s history, growing from 7.3 percent in the March quarter of 2012 to 8.1 percent in the June quarter of 2012.
The cloud division continued to deliver strong revenue growth of 10 percent sequentially over the June 2012 quarter. In addition, the total number of seats deployed increased 36 percent over the same period in the prior year. Voice over IP and UC in the cloud increasingly appeal to larger customers, as evidenced by the nearly completed installation of ShoreTel cloud division’s largest customer, Randstad, with approximately 4,000 users. Additionally, the cloud business has begun rolling out two installations expected to be more than 10,000 seats for a major news group and a financial services firm. The cloud division’s preview of its new application integration solution for UC, ShoreTel Sky AppFuse, at Salesforce.com's Dreamforce conference in September was a major milestone, as ShoreTel Sky products pioneered Salesforce.com's new architecture for connecting UC systems directly in the cloud.
For complete results, check out the press release. Additionally, a live webcast of the conference call will be available in the Investor Relations section of the company's corporate website at www.shoretel.com and an archived recording will be available beginning approximately two hours after the completion of the call until the company's announcement of its financial results for the next quarter. An audio telephonic replay of the conference call will also be available beginning at approximately 4:30 p.m. Pacific Daylight Time today until approximately 4:30 p.m. Pacific Daylight Time on Nov. 6, 2012, by dialing +1-888-203-1112 or +1-719-457-0820 for callers outside the U.S. and Canada and providing the conference identification number of 3569407.