In February, ShoreTel Q2 revenues beat market expectations by 400 percent and the company seized the opportunity to acquire M5 Networks, a New York-based hosted UC vendor, in a deal worth about $146 million. Since then, it’s been quiet going as the company works its way through the full integration of acquired M5 business.
On Monday, ShoreTel announced that its consolidated revenue for Q3 2012 was $US56.3 milion, up 9% from last year. The company’s net loss widened to USD 8.5 million, or a USD 0.17 loss per share, compared to a loss of 2.4 million, or 0.05 loss per share the year before.
More importantly, the company announced aggressive plans to revamp its sales organization. Joe Vitalone, one of ShoreTel’s stalwarts who left the company in 2009, will return to lead channel management. Tim Gaines will be responsible for North America sales and Mark Arman leads international sales and worldwide distribution. With such accomplished men leading the pack, ShoreTel would be hoping for a revival of fortunes in the next couple of quarters.
ShoreTel’s Generally Accepted Accounting Principles (GAAP) net loss for the quarter increased from $US2.4 million, or $US0.05 per share, in the third quarter of fiscal year 2011 to $US8.5 million, or $0.17 per share (including a tax benefit of $1.0 million). As of March 31, 2012, the company held $61.3 million in cash, cash equivalents and short-term investments after using $80.6 million in cash to fund a portion of the M5 acquisition.
“During the third quarter ShoreTel delivered steady growth year-over-year as well as strong gross margin expansion in our core premise business,” said Peter Blackmore, president and CEO of ShoreTel. “We remain very optimistic about the continued strength of our unified communications offerings and emerging opportunities within both the mobility and cloud markets.
Vitalone was ShoreTel’s Vice President for North America sales from 2005-2009, before he left the company to join LifeSize (now owned by Logitech), where he served as vice president of Sales for the Americas. He has previously held management positions at Siemens, AT&T Wireless and Wire One Technologies.
Gaines has been with ShoreTel since 2007. His last stint was as a regional director and general manager for a U.S. subsidiary of Fujitsu, where he developed and drove growth of the PBX switching systems business in the United States, and served as senior vice president of sales at Covad (now MegaPath), a provider of broadband and VoIP solutions for commercial and government business segments. Arman joined ShoreTel in November 2006 and will now be leading the company’s international sales and worldwide distribution teams.