ShoreTel has recorded a global first quarter profit of $US4.7 million on the back of growth in Cloud.
The company posted revenue of $US90.4 million, an increase of 7 per cent compared to the first quarter of fiscal 2014.
Net income, which excludes stock-based compensation charges, amortisation of acquisition-related intangibles, other charges and related tax adjustments, for the first quarter of fiscal year 2015, was a $US4.7 million, or $US0.07 per diluted share.
This compares with a non-GAAP net income of $US4 million, or $US0.07 per diluted share, in the first quarter of fiscal 2014.
GAAP net income was $0.4 million, or $US0.01 per diluted share, in the first quarter of fiscal 2015, compared with a GAAP net loss of $US1.0 million, or $US0.02 per share, in the first quarter of fiscal 2014.
Recurring revenues, which consist of cloud monthly recurring revenues and support revenues, represented 39 per cent of total revenue in the first quarter of fiscal 2015 and reached an annualised value of $US142 million; an increase of 17 per cent compared to the first quarter of fiscal 2014.
ShoreTel chief executive, Don Joos, said record first quarter results highlighted the continued successful execution of its three strategic priorities which were to drive growth, to expand our technology and infrastructure capacity, and to continue to earn a world-class reputation for customer satisfaction.
"Importantly, our growth initiatives, enhanced by our strong sales execution, continue to evolve and we are on track to deliver our next generation common platform in April, faster than originally anticipated," he said.
"We have also increased our financial flexibility with the signing of our new $US100 million line of credit facility.
"We are pleased with our team's strong execution and continued progress against our stated strategic goals."
Hosted revenues of $US24.9 million were up 20 per cent year-over-year and 3.5 per cent sequentially.
Non-GAAP hosted gross margin was 42.1 per cent in the first quarter of fiscal 2015, compared with 43.4 percent in the first quarter of fiscal 2014.
GAAP hosted gross margin for the first quarter of fiscal year 2015 was 37.4 per cent, compared with 39.6 percent in the first quarter of fiscal year 2014.
The total number of installed customer seats increased 27 per cent over the first quarter of fiscal 2014 to approximately 160,500.
Product revenues of $US47.7 million were up slightly year-over-year, and up one percent sequentially.
Support and services revenues of $17.8 million were up 12 per cent year-over-year and 3 per cent sequentially.
Non-GAAP support and service gross margin was 77 per cent in the first quarter of fiscal 2015, compared with 74.6 per cent in the first quarter of fiscal 2014.
As of September 30, 2014 the company had $US62.7 million in cash, cash equivalents and short-term investments and no outstanding debt.
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