ShoreTel Grows Revenue, Captures Market Share
Synergy Research Reports ShoreTel Fastest Growing, Among Top Three in U.S. IP Telephony Revenue
SUNNYVALE, Calif., Sept. 14 2011 – ShoreTel® (NASDAQ: SHOR), the leading provider of brilliantly simple IP phone systems with fully integrated unified communications (UC), is taking share from industry rivals, according to recent data published by Synergy Research Group. In its market share summary report for the second quarter of 2011, Synergy found that ShoreTel is the fastest-growing player in the U.S. and worldwide Internet protocol (IP) telephony markets in terms of year-over-year revenue growth.
“ShoreTel’s market share gains are recognition of our brilliantly simple product, lowest total cost of ownership, and expanding global distribution network,” said Peter Blackmore, ShoreTel president and CEO. “ShoreTel has seen steady growth in revenue and market share. We have tremendous opportunity in the coming year to further solidify ShoreTel’s position among the top three players.”
“ShoreTel has been successful in executing a very focused strategy of bringing advanced IP communication systems to market that are intuitively designed and priced to sell aggressively against the competition,” said Jeremy Duke, Founder & Principal Analyst, Synergy Research Group. “ShoreTel has widened their focus to include international expansion and increased their presence in larger accounts. This, combined with their culture of innovation, positions them well for continued market share gains.”
According to Synergy Research, ShoreTel ranks third in the U.S. "Pure IP" telephony market which consists of LAN Telephony (IP-Only) Call Servers and IP-Phones. ShoreTel had more than 10 percent share by revenue in the second quarter of 2011, versus 8 percent share in the second quarter of 2010. ShoreTel has 5 percent of the global pure IP telephony market.
The market share gains reflect the company’s rapid growth, with five consecutive quarters of revenue growth in excess of 30 percent. In the 2011 fiscal year, ShoreTel achieved non-GAAP profitability while increasing its sales team by over 40 percent and overall headcount by 30 percent. In addition, more than 230 new employees have joined ShoreTel in the past 12 months.
ShoreTel is laying the foundation to support additional growth as it seeks to capture a greater share of the enterprise IP telephony, mobility and unified communications (UC) markets. It implemented a two-tier distribution channel program in the U.S. this year, which positions the company for continued momentum worldwide.
“We are also focused on our mobility solution, which enables companies to empower their workers with the smartphones they love, leveraging the IP PBX platform companies already have in place – all while reducing costs and securing enterprise communications,” Blackmore added. “ShoreTel is fueling a revolution in enterprise mobility.”
Mobility is growing as a strategic IT priority because of the rapid adoption of smartphones and tablets in the enterprise, thanks in part to popular “Bring Your Own Device” (BYOD) programs now in place at companies worldwide. ShoreTel’s acquisition of Agito Networks in 2010 bolsters its mobility solution, and the company is tripling research and development investment in this area.
ShoreTel, Inc. (NASDAQ: SHOR) is the provider of brilliantly simple Unified Communication (UC) solutions based on its award-winning IP business phone system. We offer organizations of all sizes integrated, voice, video, data, and mobile communications on an open, distributed IP architecture that helps significantly reduce the complexity and costs typically associated with other solutions. The feature-rich ShoreTel UC system offers the lowest total cost of ownership (TCO) and the highest customer satisfaction in the industry, in part because it is easy to deploy, manage, scale and use. Increasingly, companies around the world are finding a competitive edge by replacing business-as-usual with new thinking, and choosing ShoreTel to handle their integrated business communication. ShoreTel is based in Sunnyvale, California, and has regional offices in Austin, Texas; United Kingdom; Sydney, Australia; and Singapore. For more information, visit www.shoretel.com.
Legal Notice Regarding Forward-Looking Statements
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 Peter Blackmore. 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 global economic uncertainty, information technology spending, the intense competition in our industry, and other risk factors set forth in ShoreTel's Form 10-K for the year ended June 30, 2011.
# # #