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The information in this conference call related to projections or other forward-looking statements is based on management’s current expectations. The company does not intend to update its forward-looking statements should circumstances change. As a matter of policy, ShoreTel does not comment on financial guidance during the quarter unless it’s done in a public forum.We will be discussing both GAAP and non-GAAP results throughout this call and I ask you to refer to our press release issued today for the reconciliation between these amounts. Our non-GAAP numbers exclude stock-based compensation charges, amortization of intangible assets and the related tax impact. Now I’ll turn the call over to Peter. Peter Blackmore Thank you, Tonya and thanks to all of you for joining us today. For our first fiscal quarter of 2012, ShoreTel generated revenue of $53.9 million, an increase of 22% over the first quarter of fiscal 2011 and in line with our overall revenue guidance of at least 20% for the year. On a sequential basis, we saw a revenue decrease of 5% as compared to our seasonally strong fourth quarter of fiscal 2011. Non-GAAP gross margins were 66.7%, up slightly from last quarter. We had a non-GAAP operating loss of $711,000 for the quarter, and a net loss of $1.2 million or $0.02 per share, mostly due to lower revenue and approximately $1.2 million in expenses related to our Annual Partner Conference, which took place in July. The modest sequential decline in ShoreTel’s revenues this quarter is primarily related to three key areas. First, we saw a clear lengthening of the sales cycle, which we believe is driven by the uncertain macro economic environment. Second, we saw sales from several of our regional partners decline after they had set a record in quarter four. And finally, quarter one bookings were seasonally down as expected. Despite this, we believe our win rate remained strong during quarter one, and we are encouraged by the very positive reception, our solution continues to get from customers.
As I will detail later in the call, our market share continues to improve and demonstrates our ability to grow faster than our competitors, and the market as a whole. Importantly, we were able to reduce our spending during the quarter to a level below our projections, thereby mitigating the impact of the revenue decline on our bottom line.We remain confident in ShoreTel strategic positioning within the marketplace, and we continue to believe ShoreTel will grow faster than the overall market, and capture market share based on our brilliantly simple value proposition that is resonating incredibly well with our customers. I’m happy to report that we had a number of successes during the quarter, including multiple large orders from new education and government customers, strong improvement in our support and services business, excellent growth from our large multi-regional partners, and also good growth in Canada. These successes were offset by lower performance from many of our U.S. regional partners, which as a group sequentially declined more than our overall business in quarter one. We also maintained flat international revenues compared to our very successful quarter four, reflecting our positive efforts to grow our business outside of the United States. Additionally, we generated solid gross margins during the quarter and are pleased that we were able to improve them despite having slightly lower revenues than expected, as well as a significantly increase in volume through our U.S. value-added distributors, which have a slightly lower gross margin from the rest of our business. In terms of the broader market, according to Synergy Research, the U.S. enterprise IP Telephony market declined in the low single-digits in the June quarter. According to the most recent data available, our market share gains enabled us to significantly outpace the overall market in the June 2011 quarter and deliver very robust market share growth. In that quarter, we grew our U.S. pure IP market share from 9.2% to 10.2%, a biggest jump in several quarters. Read the rest of this transcript for free on seekingalpha.com