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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 that you 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. With that, I’ll turn the call over to Peter. Peter Blackmore Thank you, Tonya, and thanks to all of you for joining us today. I’ll start with the financial highlights from the quarter. Revenues of $56.3 million were up 9% over the third quarter of fiscal 2011, and were seasonally down 3% from the previous quarter. Non-GAAP gross margins were better than expected at 67.2%, which was above our guided range. For the quarter, we recorded a non-GAAP net loss of $1.5 million or $0.03 per share. Let me begin by sharing the metrics from our premise-based business, which the Cloud Division numbers. Revenues of $55 million were up 7% from the year ago quarter. A few notable specifics, our quarter three achievement included a 68% improvement in revenues from CDW and Black Box of quarter three at fiscal 2011. Additionally, revenues from our service providers were flat with quarter two coming in a little better than expected and representing 13% of our premise-based business. International revenues were solid on the quarter showing a 19% year-over-year increase, making international revenues 13% of our total premise-based revenue. Our competitive win rate remains very strong and we were pleased to added more than 1,000 new customers in the quarter, which is consistent with recent quarter’s achievement. Some examples, working with Verizon we added SAGE applications a leading international publisher of journals, books and electronic media for academic educational and professional markets.
SAGE shows ShoreTel over Microsoft link because of our lower total cost of ownership and more robust voice and contact center capabilities. We also continue to make progress showing, large global implementations as we have done over the past few quarters. A good example of this is Brunswick Corporation, which has over 19,000 employees worldwide.Brunswick Corporation is a parent company for brands such as Life Fitness, Mercury Marine, Sea Ray and Brunswick Bowling and Billiards, a plan to rollout ShoreTel to 80 global sites. Brunswick joins The Good Samaritan Lutheran Society as one of our largest global customers. Both are planning installations with well over 10,000 seats. We are also seeing more wins with large enterprises such as the Belgium Ministry of Finance that currently has 600 users on ShoreTel Mobility and is planning to add 400 more, for its workers using iPhones. They use ShoreTel Mobility to ensure their employees of UC capabilities on their smartphones as well as to substantially minimize costs of cell phone roaming charges. According to the latest data from Synergy Research, the global and United States market showed only slight growth in the December 2011 quarter. Therefore ShoreTel’s market share both worldwide and the United States increased. With year-to-date revenue growth in our premise-business of approximately 16%, we have again significantly outperformed the market. As we outlined in our Investor Day presentations, we’ve recently made a number of changes to our sales team. We have divided our worldwide sales team responsibility between two season ShoreTel executives each with over five years at the company. Tim Gaines, a former regional director in sales will lead our North American Sales team and Mark Arman who most recently headed business development will lead our international sales team. We believe this dedicated focus will further enhance our ability to drive revenue growth. These two leaders are making additional changes to their sales organizations to improve both our productivity and our overall growth. Read the rest of this transcript for free on seekingalpha.com