ShoreTel Names New CEO, Betters Q4 Results

Unified communications provider ShoreTel (SHOR) named Don Joos, the company’s current Global Services vice president, as its new president and chief executive, succeeding Peter Blackmore, who’s retiring after nearly three years on the job in which he doubled sales, scaled global operations and boosted the company’s growth.

ShoreTel announced Joos’s ascension at the same time as presenting its Q4 and FY 2013 financial performance. The company posted $85.6 million in Q4 sales, a 9 percent increase over the same period last year, and more than halved its net loss for the quarter to $2.3 million, or 4 cents, from $5 million and 9 cents per share in 2012.

ShoreTel’s losses for the full year deepened, however, as the company lost $25.7 million, or 44 cents per share in fiscal year 2013 as compared to a net loss of $20.7 million, or 41 cents per share, in fiscal 2012. The company’s revenue increased some 27 percent in FY 2013 to $313.5 million.

Blackmore said ShoreTel’s cost-cutting, focus on cloud computing and increased sales profile favorably position the company to post a profit in FY 2014, pointing to 1,200 new customers in Q4 and a 6 percent sequential increase in revenue for its cloud solutions ShoreTel Sky portfolio to $19.3 million.

“Fiscal year 2013 showcased the first full year of cloud revenues from our ShoreTel Sky offering, which have been growing steadily over the last six quarters and were up 35 percent year-over-year in the fourth quarter,” he said. “With our continued focus on improving operating efficiencies and sales productivity we drove our non-GAAP operating expenses to 57 percent of revenue in the fourth quarter. Coupled with the projected growth in our target markets, we are positioned for continued profitability in fiscal 2014.” 

Now that he’s helming the company, Joos will be responsible for shepherding its fortunes as Blackmore projected. He joined ShoreTel in April 2011 and for the past year as business operations senior vice president has managed engineering/R&D, product management, global support and services, IT, quality and operations, which together comprise about 50 percent of the company’s operations. Joos is credited with crafting ShoreTel’s business strategy to provide UC technology to customers via a premise, hosted or hybrid offering.

“After an extensive search it became clear that Don is uniquely qualified to fully mobilize the company in its drive to be the leading unified communications provider,” said Chuck Kissner, ShoreTel board chairman. “His achievements, knowledge of the industry, vision, respect of his peers and employees, and commitment to the company’s strategy set him apart.”

Prior to joining ShoreTel, Joos spent nine years as an Avaya company vice president.

“ShoreTel now has the opportunity to extend its leadership position by fully integrating its cloud offering across its suite of unified communications products,” said Joos. “With some of the highest customer satisfaction in the business, world-class employees and a strong track record of innovation, the company’s prospects are unlimited. I look forward to working with the ShoreTel team during this very exciting time to further accelerate our recent progress.”