ShoreTel Reports Financial Results for Q3 2010, Beats Analyst Expectations

by Gaurav Kheterpal on May 3, 2010

ShoreTel Inc., a leading provider of IP phone systems with fully integrated Unified Communications (UC), recently announced financial results for the third quarter of fiscal year 2010, which ended March 31, 2010. Analysts expected ShoreTel Inc. earnings to come in at $-0.07 per share for last quarter, but the company reported actual earnings of $-0.04—3 cents above the analyst expectations. Q3 revenue stood at $37.0 million, up 4 percent sequentially from the second quarter of fiscal 2010 and 19 percent from the third quarter of fiscal year 2009.

The company has achieved record revenue and gross margins in Q3, 2010. As of March 31, 2010, the company had $114.6 million in cash, cash equivalents and short-term investments. The company generated approximately $1.7 million in cash flow from operations during the quarter. ShoreTel has also issued earnings guidance for next quarter that is in line with current analyst expectations.

ShoreTel has reached a number of major milestones in the last quarter. The company shipped its one millionth phone to Clinica Romero in Los Angeles as part of an initial deployment that includes more than 180 phones in three locations. In March, it was selected as the preferred solution provider by the Evangelical Lutheran Good Samaritan Society, nation’s largest Not-for-profit Long-term Care provider. The company announced that it had won seven 2009 MarketTools CustomerSat Achievement in Customer Excellence (ACE) Awards.

ShoreTel is an innovative company which constantly introduces new technologies and new marketing techniques. In a first-of-its-kind program for the Unified Communications Industry, ShoreTel launched a ‘Lowest Total Cost of Ownership Guarantee’ program which uses independent third-party data to compare the total costs a business will incur for its UC system over time. If the analysis shows that ShoreTel’s TCO is higher than a competitor’s, ShoreTel guarantees it will lower its prices to beat the competition.

IP Business Communication is a keenly contested market segment. There’s stiff competition from bigger players like Alcatel-Lucent, Avaya and Cisco and there are numerous relatively smaller players like Mitel, Digium and others. ShoreTel has managed to differentiate itself by highlighting the low TCO and greater value of its products. The company’s official Press Release for Financial Results for Q3, 2010 is available here. A complete transcript of the Earnings Call is available here.

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Written by: Gaurav Kheterpal. www.digitcom.ca >. Follow TheTelecomBlog.com > by: RSS>, Twitter >, Identi.ca >, or Friendfeed >

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