ShoreTel up 11.6% after Q3 beat

|By:, SA News Editor

ShoreTel (NASDAQ:SHOR) has gained 11.6% after hours after posting beats on top and bottom lines in its Q3 earnings as a shift toward hosted revenus continues.

Net loss narrowed on a GAAP basis, to $2.9M from a year-ago loss of $8.7M. The company swung to a non-GAAP net profit of $0.6M.

The company also announced an expanded partnership with ScanSource Communications.

Cash flow from operations was $2.7M; at quarter's end, the company had $104.9M in cash, equivalents and short-term investments, against no debt.

Hosted average monthly recurring revenue per customer fell to $1,991 from last year's $2,209, and hosted monthly ARPU dropped to $48 from $52.

Revenue breakout: Hosted and related services, $38.3M (up 16.8%); Product, $30.5M (down 10%); Support and services, $18.9M (up 2%).

Guidance for Q4 is in line with expectations, with revenue expected at $88M-$94M. The company sees gross margin of 64-65% on a non-GAAP basis, and opex of $56M-$57M.

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