ShoreTel makes $US6.7 million in second quarter of fiscal 2015
Unified communications company, ShoreTel, has made a total revenue was $US90.4 million and non-GAAP of $US6.7 million, or $US0.10 per diluted share net income, for the second quarter of its fiscal year 2016, which ended December 31, 2015.
This compares to a total revenue of $US90.6 million and a non-GAAP net income of $US5.4 million, or $US0.08 per diluted share, in the second quarter of fiscal 2015.
Its GAAP net income was $US2.5 million, or $US0.04 per diluted share, in the second quarter of fiscal 2016, compared with a GAAP net loss of $US6.9 million, or $US0.11 per diluted share, in the second quarter of fiscal 2015.
Recurring revenues, which consist of all hosted and related services revenue plus support revenues, represented 52 per cent of total revenue in the second quarter of fiscal 2016 and reached an annualised value of $189 million; an increase of 15 per cent compared to the second quarter of fiscal 2015.
However, product revenues of $US41.0 million were down 13 per cent YoY and down one per cent sequentially. Non-GAAP product gross margin was 66.7 per cent in the second quarter of fiscal 2016, compared with 67.0 per cent in the second quarter of fiscal 2015.
Support and services revenues of $US18.9 million were up four per cent YoY and down one per cent sequentially. Non-GAAP support and service gross margin was 75.7 per cent in the second quarter of fiscal 2016, compared with 77.0 per cent in the second quarter of fiscal 2015.
As of December 31, 2015, the company said it had $US106.9 million in cash, cash equivalents and short-term investments and no outstanding debt. In addition, the company generated $3.6 million in cash flow from operations in the quarter ended December 31, 2015.
ShoreTel president and CEO, Don Joos, said during the company’s fiscal second quarter, it made significant progress towards the strategic priorities and catalysts for growth.
"With the ShoreTel Connect platform launched, we gained momentum with customers as our pipeline of Cloud opportunities expanded, our channel partners contributed a historically high portion of our Cloud bookings and we announced two acquisitions to accelerate our Cloud business. While executing these strategic objectives, we generated solid profitability," he said.
On January 6, ShoreTel completed its acquisition of Cloud-based communications provider, Corvisa, which the company claimed will accelerate its fiscal 2017 hosted revenue growth by enhancing ShoreTel's solutions and architecture.
In addition, ShoreTel aims to expand on its Cloud services in Europe as a result of acquiring Corvisa's Amsterdam and UK datacenters.
As part of the company's acceleration phase of growth, it also acquired M5 Networks Australia, and the company said it accelerates its Cloud roll-out in the country.
