SUNNYVALE, Calif., May 23, 2016 /PRNewswire/ -- ShoreTel® (NASDAQ: SHOR), the leading provider of brilliantly simple unified communications (UC) solutions and phone systems, today announced its expectation for its fiscal year 2017 hosted revenue growth.
The company has completed a business review in conjunction with its ongoing business planning and acquisition integration process. That evaluation and the related forecast leads to the company's current expectation that its 2017 hosted revenue will grow 21 percent to 24 percent above the fiscal year 2016 levels. The company also reiterated its business outlook for its 2016 fiscal fourth quarter previously communicated on April 28, 2016.
"During our fiscal second quarter ending December 2015 we announced two acquisitions, the first to expand our cloud offering into Australia and the second to position us within the standalone cloud contact center space and give us access to exciting new technology and technical talent. We continue to believe that these were important strategic acquisitions," said Don Joos, president and CEO of ShoreTel. "While the integration of the M5 Australia acquisition is continuing as expected, certain aspects of the business integration and revenue ramp associated with the Corvisa acquisition are not progressing as originally anticipated and are thus impacting our previous near term assumptions. Today's announcement represents a recalibration to our hosted revenue expectations, based primarily on our updated forecast for the acquired offerings along with our current organic growth projections. We will continue to evaluate and adjust our cost structure as we remain committed to achieving a small non-GAAP operating profit in fiscal year 2017."
CEO Presentation at J.P. Morgan's TMT Conference
Don Joos, ShoreTel's president and chief executive officer, will discuss fiscal year 2017 hosted revenue growth and other topics at the J.P. Morgan TMT Conference today, Monday, May 23, 2016 at 11:20 a.m. Eastern Time.
Investors can listen to the discussion live or in replay via the webcast in the Investor Relations section of the ShoreTel website at http://ir.shoretel.com.
Investors should visit the website at least 15 minutes prior to the beginning of the scheduled presentation to register, download and install any necessary multimedia streaming software.
Forward Looking Statement
ShoreTel assumes no obligation to update the forward-looking statements included in this release. This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the federal securities laws, including, without limitation, statements by Don Joos, statements regarding future growth, product and technology, statements regarding ShoreTel's anticipated future hosted revenues, and other financial information. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The risks and uncertainties include the intense competition in our industry, our reliance on third parties to sell and support our products, our ability to continue to grow our cloud-based solutions and to sell products of acquired companies, our ability to grow or maintain our premise products, supply and manufacturing risks, the impact of service disruptions or security breaches, uncertainties related to global operations, our ability to control costs as we expand our business, unforeseen difficulties in integrating acquired employees, products and technologies, inability to retain acquired customers, difficulties in managing more dispersed business operations, our ability to attract, retain and ramp new personnel, potentially longer sales cycles, uncertainties inherent in the product development cycle, our ability to identify and execute on strategic opportunities, uncertainty as to market acceptance of new products and services, the potential for litigation in our industry, the impact of mergers and consolidations in our industry, the uncertain impact of global economic conditions and foreign exchange rates, including impact on customers' purchasing decisions, and other risk factors set forth in ShoreTel's Form 10-K for the year ended June 30, 2015.
About ShoreTel, Inc.
ShoreTel, Inc. (NASDAQ: SHOR) is a leading provider of brilliantly simple unified communications (UC) products, cloud services and IP phone systems powering today's always-on workforce. Its flexible communications solutions for contact centers and cloud, onsite and hybrid UC environments eliminate complexity, reduce cost and improve productivity. Recognized for its industry-leading customer experience and support, ShoreTel's innovative contact center solutions, application integration, collaboration tools, mobility, SIP trunking and business phones enable users to communicate and collaborate no matter the time, place or device, with minimal demand on IT resources. ShoreTel is headquartered in Sunnyvale, Calif., and has regional offices and partners worldwide. For more information, visit shoretel.com.
ShoreTel and the ShoreTel logo are trademarks or registered trademarks of ShoreTel, Inc. in the United States and/or other countries.
Investor contact:
Barry Hutton
408-962-2573
bhutton@shoretel.com
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SOURCE ShoreTel