ShoreTel, a supplier of UC solutions to major telcos like AT&T (NYSE: T) and Frontier, has lowered its 2017 hosted revenue growth from 30 percent to the 21-24 percent range as it sees speed bumps with integrating Corvisa into its portfolio.
Don Joos, president and CEO of ShoreTel, said that its M5 Australia acquisition is on track, but the Corvisa deal has driven it to realign its previous growth forecasts.
"While the integration of the M5 Australia acquisition is continuing as expected, certain aspects of the business integration and revenue ramp associated with the Corvisa acquisition are not progressing as originally anticipated and are thus impacting our previous near term assumptions," Joos said in a release.
In late December 2015, ShoreTel acquired Corvisa for $8.5 million, a deal the company said enhanced its unified communications capabilities. The deal later closed in January.
Upon announcing the Corvisa purchase, ShoreTel forecast fiscal 2017 hosted revenue growth of about 30 percent.
The company did not indicate what the issues were related to this acquisition, but more light could be shed during today's J.P. Morgan TMT Conference.
For more:
- see the release
Related articles:
ShoreTel acquires Corvisa for $8.5M, enhances UC cloud capabilities
ShoreTel board rejects Mitel's latest buyout offer
Mitel raises its ShoreTel offer to $8.50 per share in cash, stock