Boston, MA 08/11/2014 (wallstreetpr) – ShoreTel Inc (NASDAQ:SHOR) posted fourth quarter results wherein the total revenue came at a record $88.6 million. It was up by 4% as compared to the 4Q2013. The non-GAAP net income came at a record $4.9 million. It accounts to $0.08 per diluted share as compared to $0.06 per share in the 4Q2013. The non-GAAP net income excludes the amortization of acquisition-related intangibles, stock-based compensation charges and other related tax adjustments.
The higher earnings
The GAAP net income came at $2.1 million as against the net loss of $2.3 million in 4Q2013. It accounts for the net income of $0.03 per diluted share as against net loss of $0.04 per share in 4Q2013. The non-GAAP total gross margins came at 61.1% as compared to 61.4% a year-ago. The GAAP gross margin came at 59.6% as compared to 59.9% in the same period last year.
The revenues
The recurring revenues came at 38% to $136 million. It was a jump of 19% as compared to the 4Q2013. The hosted revenues increased 25% year-over-year to $24.1 million. It was up by 6% sequentially. The non-GAAP hosted gross margin came at 43.7% as compared to 39.1% in the 4Q2013. GAAP hosted gross margin came at 39.4% as compared to 34.9% in the same quarter of fiscal year 2013.
The product revenues saw a decline of 7% year-over-year. However, it was higher 9% sequentially. The revenue from support and services was up by 13% at $17.2 million year-over-year. It came higher 5% sequentially. ShoreTel had no outstanding debt in the quarter. The free cash flow stands at $56.1 million.
Management view
President and CEO of ShoreTel, Don Joos said that ShoreTel Inc (NASDAQ:SHOR) had a great fiscal year. ShoreTel fulfilled all the commitments in respect of product launches, business integration and infrastructure investments. The company reported a record level in terms of non-GAAP profitability.
