ShoreTel Not Sold But Strategic Review Continues
ShoreTel (SHOR) announced a smaller-than-expected quarterly loss today, and confirmed that a strategic review of the business continues. However, there’s still no assurance that a company sale will take place, the company said.
ShoreTel announced in August 2016 that the company had formed a strategic advisory committee to explore potential alternatives — including a potential company sale. The Company retained J.P. Morgan Securities LLC as its financial advisor and Fenwick & West LLP as its legal counsel to assist the review process. Although ChannelE2E has speculated about potential ShoreTel buyers, there hasn’t been much chatter about a potential company sale.
Fast forward to present day and ShoreTel’s latest quarterly results had some bright spots. Total revenues dipped to $86.3 million, down from $90 million for the corresponding quarter last year. But the company’s $5.6 million net loss was smaller than Wall Street expected.
The voice and unified communications company continues to accelerate from products toward recurring hosted revenues. Indeed, hosted revenues were $35.6 million in the quarter, up 21 percent year-over-year. Product revenues fell 23 percent to $31.8 million.
ShoreTel also maintains a strong balance sheet — including $103.5 million in cash and no outstanding debt.
The ShoreTel results come one day after rival 8×8 Inc. announced stronger-than-expected revenue growth for its various hosted unified communications services. 8×8 showed particularly strong midmarket channel momentum, CEO Vik Verma said during an earnings call yesterday.