ShoreTel services revenue cushions product decline

Overall sales on the up

Unified communications (UC) provider ShoreTel has released its Q4 and full-year results, showing a two per cent annual decline in full-year product revenues to $181.3m (£117m).

The drop in product revenue was cushioned by an 11 per cent increase in support and service revenues to $73m over the same period.

The vendor reported an overall seven per cent year-on-year increase in full-year revenues to $360.7m, with Q4 sales for FY15 hitting $94.4m, representing a seven per cent rise compared with the same quarter 2014.

Non-GAAP net income for the fiscal year 2015 was $20.6m, compared with $14.7m in 2014.

Non-GAAP net income in the fourth quarter reached $7.8m, up from $4.9m the year before.

ShoreTel is expecting total revenues for the first quarter of 2016 to be in the range of $86m to $91m.

Don Joos, president and CEO of ShoreTel, said: "Fiscal 2015 was a year of strategic investments, geographic expansion and a significant shift towards recurring revenue.

"We will roll out ShoreTel Connect later this quarter, and achieving this key milestone is an important step in realising our vision of delivering a single solution to all customers whether they choose to operate in the cloud, on-site or in a hybrid environment."