ShoreTel, Inc. (SHOR) JP Morgan Global Technology Media and Telecom Conference May 15, 2012, 10:00 a.m. ET Executives Mike Healy - SVP & CFO Analysts [Unidentified Analyst] Presentation Operator Mike Healy
Previous Statements by SHOR
» ShoreTel's CEO Discusses Q3 2012 Results - Earnings Call Transcript
» ShoreTel's CEO Hosts Analyst Day Conference (Transcript)
» ShoreTel's CEO Discusses F2Q12 Results - Earnings Call Transcript
» ShoreTel's CEO Presents at the BarCap Global Technology Conference - Event Transcript
We did close our acquisition of M5 Networks on March 23 rd, so we just had about eight days of results in the March quarter, and obviously we’ll have a full quarter of results in the June quarter. For the March quarter, they had very strong bookings, certainly better than their plan, and good growth over the December quarter. We’ll talk more about the results of M5 in the upcoming quarter, as we’ll have a full quarter of data.But the biggest thing for us right now, on both sides of the business, is we’re committed to profitability for fiscal year ’13, and we’ve kind of been in and out of profitability every quarter, the last couple quarters, when our revenue goes down a little bit, our expenses are pretty consistent, and so we’ve been in and out of profitability. We’re striving for profitability for our fiscal year ’12, which ends in June. To do that, we have to hit the high end of the range of guidance for the quarter. But June is going well, we expect a strong quarter. It’s usually a big, strong quarter for us from a booking standpoint. It’s the end of our fiscal year, so our sales guys are really doing well to meet their year-end quotas, and at the end of the day we’re growing market share, we’ve got the best product industry, a high level of customer satisfaction, and we’re focusing on two key areas that are growing relatively fast, mobility and Cloud. And so, that’s a brief overview of where our focus is as a company, and then Rod has a number of questions and we’ll open it up. Question-and-Answer Session [Unidentified Analyst] Thanks, Mike. Sorry I wasn’t here to introduce you. Thanks for kicking it off. I wanted to just go back to the hosted market a little bit, and talk about I guess the future, how you guys see the future developing. Premise has been the way things are done, hosted’s kind of this interesting new rent-it-while-you-use-it model. How do you think the market’s going to evolve over the next five years, do you think most people will end up hosted in the small and medium business category or do you think an awful lot will still be premise and there won’t be, hosted will still kind of be a small niche market?
Mike HealyWe think hosted will continue to grow rapidly. We think it’ll be bigger and bigger. Right now the average seat size of a hosted customer on our business is about 30 seats. I think that will grow over time. At a certain spot, it may make more sense for a customer to go to premise than hosted. In reality, I think at the end of the day, years from now, I think what we’ll have is potentially a hybrid solution where a lot of customers, they’ll have a decent-sized I.T. staff at their headquarters, and they may do on-premise there, where they can manage it, and then their remote locations, they may even go to a hosted solution there, so kind of a best of both worlds, so they don’t have to deploy staff, it’s easy to manage and manage the infrastructure out in these remote locations. Our goal is we’re going to give the customer an option, if they want hosted or premise. Frankly, we’re going to be impartial. Most customers have decided what they want to do when they come and put in an RFP, and then we’ll fulfill as they need, but we’re going to be impartial between whatever the customer wants and I think we’re one of the few that can offer that kind of solution. Read the rest of this transcript for free on seekingalpha.com