Partner performance helps company increase earnings and market value.
RICHMOND, Va. — Oct. 28, 2015 — ShoreTel’s reliance on partners such as IPC Technologies to bring its brilliantly simple business communications platforms to the marketplace is paying off. The company recently announced a 29-percent increase in adjusted earnings for the first quarter of fiscal year 2016, leading to a spike in stock price and a growing buzz among financial analysts.
“ShoreTel is unique in the IP communications industry with its commitment to delivering 100 percent of its sales through the indirect partner channel,” said Jeff Andrews, Executive Vice President, IPC. “As a longtime ShoreTel partner, IPC is pleased that our ability to deliver ShoreTel’s technology in unique and innovative ways is helping propel their business forward.”
ShoreTel issued its quarterly earnings data on Oct. 22, reporting $0.09 earnings per share (EPS) for the quarter —considerably better than Wall Street estimates of $0.04 to $0.05. The firm earned $90.20 million during the quarter, compared to analyst estimates of $88.87 million.
The report sent ShoreTel’s stock price to a new one-year high and ignited a surge across the entire IP telephony market segment. Several research firms have since issued new market guidance on ShoreTel, lifting their price targets and bumping their ratings to a “buy” or “strong buy.”
“In the quarter, we rolled out ShoreTel Connect, reignited our cloud bookings growth, expanded our hosted gross margins and delivered record cash flow from operations,” said Don Joos, president and CEO of ShoreTel. “We are now in the third and final phase of our strategic transformation and we continue to operate from a position of strength with momentum and accelerating results.”
Part of the transformation is an enhancement of its partner program that gives partners such as IPC an expanded role in the delivery of ShoreTel’s entire solutions portfolio.
“ShoreTel has always understood that customers rely on the expertise of solutions providers like IPC to deliver the most innovative and reliable enterprise communication systems,” said Andrews. “This user-driven approach leads to a more powerful exchange of ideas, improved responsiveness and better decision-making.
“IPC just had its second best partner year ever in terms of ShoreTel growth in new major customers. Many of our customers are based in Washington, Chicago, Denver and Wilmington, Del., with regional offices in California, Nevada, New Jersey, New York, Georgia and Florida.”