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ShoreTel: Agito Mobility Muscle Will Drive Enterprise Push

By Chad Berndtson
April 27, 2011    12:18 PM ET

Page 3 of 3

Solution providers are yoking ShoreTel momentum during a watershed growth period for the company.

Earlier this week, ShoreTel reported third quarter revenue of $51.6 million, representing 39 percent year-over-year growth and 8 percent sequential growth, and ShoreTel's fourth consecutive quarter of 30 percent year-over-year revenue growth or higher.

ShoreTel also showed non-GAAP profit of $602,000 -- putting ShoreTel into non-GAAP profit one quarter earlier than expected, according to CEO Blackmore. Blackmore, who joined ShoreTel in October following a stint at the top job at UTStarcom, said he expects 20 percent revenue growth for ShoreTel overall in its fiscal 2012.

Blackmore also said during ShoreTel's quarterly earnings conference call Tuesday that the company has made gains in brand awareness, citing benchmark surveys from 2009 and 2011 that showed ShoreTel's aided and unaided brand awareness nearly doubling over the previous four quarters.

ShoreTel 12, the next update to the company's UC platform and expected to include a UC conference bridge among other enhancements, is also due this quarter.

Solution providers like Gulling say they're firmly behind ShoreTel's strategy to build enterprise-focused solution providers that can gain ShoreTel credibility by winning 1,000-plus seat deals and building word of mouth among larger customers.

"They can't be just another brand that sells phones," Gulling said. "It's not like this thing was totally broken, but with a new CEO coming on, it seems to be 'Hey, we've got a good thing going, let's ramp up."



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