SUNNYVALE, Calif., Oct. 1, 2012 – ShoreTel® (NASDAQ; SHOR), the leading provider of brilliantly simple unified communications platforms, including business phone systems, applications and mobile UC solutions, today announced that six of the largest former M5 stockholders, including Dan Hoffman, president and general manager of ShoreTel Cloud Division, have notified ShoreTel that despite the recent release of the lockup of a portion of their shares, they currently do not intend to sell their stock for at least an additional six months.
“We fundamentally believe ShoreTel’s stock is undervalued today,” explained Alan Patricof, managing director, Greycroft Partners. “ShoreTel continues to make the right moves to grow shareholder value therefore our firm, as well as five additional top M5 stockholders, plan to hold our shares a minimum of six more months.”
The top six M5 stockholders, representing approximately 66 percent of the shares issued in conjunction with the acquisition of M5 Networks (now ShoreTel’s cloud division, which offers the ShoreTel Sky solutions), have voluntarily displayed a vote of confidence in ShoreTel’s strategic direction after the initial lockup restriction period of six months expired this week.
“We knew we were making the right move when M5 decided to become part of ShoreTel, as a way to scale and cement our position in the hosted UC marketplace,” said Hoffman. “This show of solidarity by our shareholders reaffirms our decision and proves everyone is more committed than ever to the strength of our company’s future.”
“We appreciate this show of support from the top former M5 stockholders. We have a strong and growing position in the premise UC market and a great growth opportunity in the cloud telephony market. ShoreTel has never been better positioned,” said Peter Blackmore, president and CEO of ShoreTel.
About ShoreTel, Inc.
ShoreTel, Inc., (NASDAQ: SHOR) is a leading provider of Pure IP unified communications solutions. ShoreTel enables companies of any size to seamlessly integrate all communications - voice, video, messaging and data - with their business processes. Independent of device or location, ShoreTel's distributed software architecture eliminates the traditional costs, complexity and reliability issues typically associated with other solutions. ShoreTel continues to deliver the highest levels of customer satisfaction, ease of use and manageability while driving down the overall total cost of ownership. ShoreTel is headquartered in Sunnyvale, California, and has regional offices in Austin, Texas, the United Kingdom, Sydney, Australia and Munich, Germany. For more information, visit www.shoretel.com or call 1-800-425-9385.
Legal Notice Regarding Forward-Looking Statements
ShoreTel assumes no obligation to update the forward-looking statements included in this release. This release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including, without limitation, statements regarding certain M5 stockholders’ timing of future stock sales and ShoreTel’s future business and prospects. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The risks and uncertainties include the former M5 stockholders’ discretion regarding timing of future stock sales and that circumstances could change for such stockholders, the economic climate in the U.S., and the impact thereof on information technology spending, the intense competition in our industry, our reliance on third parties to sell and support our products, supply and manufacturing risks, our ability to control costs as we expand our business, uncertainties inherent in the product development cycle, uncertainty as to market acceptance of new products and services, the potential for litigation in our industry, risks related to our acquisition of M5 Networks, including technology and product integration risks, ability to retain key personnel and customers and the risk of assuming unknown liabilities, and other risk factors set forth in ShoreTel’s Form 10-K for the year ended June 30, 2012.