NEW YORK (TheStreet) -- ShoreTel (SHOR) fell 11.5% to $8.31 on Friday despite the company's announcement of improved second-quarter results.
The communications company reported a total revenue of $84.5 million, up 13% from the same period one year earlier. Non-GAAP income was 3.2 million, or 5 cents a share, compared to a non-GAAP net loss of $2.6 million, or 4 cents a share, in the second quarter of fiscal 2013. The GAAP net loss was $0.9 million, or 2 cents a share, compared to $10.4 million, or 18 cents a share, in the same period one year earlier.
"The positive second quarter results validate the ongoing value of our business model which led to our revenue growth, non-GAAP profitability and significant cash flow from operations," said president and CEO Don Joos in a company statement. "We have strategically positioned the company for the growth opportunities in our industry and we remain focused on executing key initiatives including our enhanced channel partner program, sales team integration and product launches."
TheStreet Ratings team rates SHORETEL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SHORETEL INC (SHOR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."