ShoreTel says fiscal 4th-quarter revenue will beat guidance; CEO Combs to step down

ShoreTel says fiscal 4Q revenue to beat guidance

SUNNYVALE, Calif. — ShoreTel Inc., which makes Internet phone and messaging systems, said Wednesday it expects fiscal fourth-quarter revenue to be higher than its earlier forecast.

The company’s CEO, John W. Combs, also announced he will leave the company.

Shares rose 11 cents, or 2 percent, to $5.50 in after-hours trading. Earlier, the stock had added 5 cents to close at $5.39.

ShoreTel said it expects to report revenue of $41 million to $42 million, compared with earlier guidance for $35 million to $38 million in revenue.

Analysts surveyed by Thomson Reuters were looking for revenue of $37.8 million.

Combs said in a statement that he will continue as CEO while the board seeks his replacement. Gary Daichendt was named the new chairman.

Combs also said he will remain on the board through the end of his term.

ShoreTel is set to report quarterly results on Aug. 11. Analysts expect the company to report a net loss of 8 cents per share.