It’s certainly been a busy month. We’ve just begun our Fiscal Year 2012 and last week we had a very successful 2011 Champion Partner Conference.
First of all, I want to thank all of you – without our partners, customers and employees, we would not be where we are today. We have been through more change in the last year than ever before. In addition to my arrival last December, we implemented a brand new two-tier distribution program in the U.S. We established a dedicated channel sales organization to recruit new partners and set new sales and support standards for partners. We increased our sales headcount by close to 50 percent and our overall employee headcount by 30 percent. And we made our first and very important acquisition.
We are very pleased with the Agito acquisition we made last October. We have since realized the great potential we have in this market. The smartphone market has exploded with over 100 million smart phones sold every quarter. To take advantage of this potential we must increase our mobility investment – and we are, tripling spend on mobility R&D. The world is going mobile so a big push here simply enhances the relevance of the entire ShoreTel Unified Communication solution.
We continue to demonstrate we have a successful business model, particularly in the U.S. So it should be no surprise to you that we shall continue to invest in our core business as we have done in the last year. Our growth is driven primarily by our excellent win rate (above 50 percent) and by our ability to steadily obtain higher consideration rates. This is the result of strengthening our go-to-market capability in our partners plus building our sales and marketing activities. As long we can continue this momentum, while enhancing sales and partner performance, it makes all the sense to continue to invest to drive further growth.
We shall grow our international presence –investing modestly and selectively. International is my background, after all, and the key is a focus and critical mass. If you look are where we’ve been successful with our international growth, it has occurred when we’ve been committed to scaling properly in a country. So we shall target only a few new countries in FY2012 in addition to strengthening our position in selective countries where we can make an impact.
What has made ShoreTel good is what can make us great: Clear product differentiation on total cost of ownership and stellar customer satisfaction scores, adding new technologies such as mobility to drive new revenue streams, product simplicity and quality, clear brand value – Brilliant Simplicity is working.
We recognize that we are not perfect. In any company there are tradeoffs on how to invest. We know we cannot do everything at once. But we are dedicated to maintaining the highest quality of our products and have put many new quality assurance processes in place. We have a strong roadmap and work with partners and customers to continually ensure we are addressing the right development.
While our competitors are distracted for a variety of reasons, we remain very focused on the great opportunities before us. This is our time to excel!
We have accomplished four quarters of record revenues with more than 30 percent growth rate on a year-to-year basis. We have turned profitable on a non GAAP basis and will maintain that in FY2012. We want to be the leader in UC mid-market – 50-5,000 seats and are on our way toward achievement. We are a pure indirect-play company, so all our partners need to do is grow with us. We shall be very loyal to people who are loyal to us. We have a winning formula and will continue to drive – as long as we can sustain productivity we will keep the course.
A good plan is simple to understand and simple to implement. Brilliantly Simple, if you will. We are ambitious; we want to grow and we want to gain market share. I have no doubt we are on the right track. I hope all of you are as excited as I am about the great opportunity before us.