Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ShoreTel, (NASDAQ:SHOR) plunged more than 11% Friday after the company turned in decent fiscal second-quarter results, but provided lower-than-expected forward revenue guidance.

So what: Quarterly sales rose 13% year over year, to $84.5 million, beating expectations for sales of $83.15 million. That translated to non-GAAP net income of $0.05 per share, compared to a $0.04 per share net loss in the same year-ago period. By contrast, analysts were modeling adjusted earnings of only $0.03 per share.

In addition, ShoreTel projected revenue in the current quarter should arrive in the range of $80 million to $85 million,  the mid-point of which sits below analysts' average expectations for sales of $84.19 million.

Now what: The top-line guidance miss certainly wasn't all that alarming. But it's evident that the market was hoping for a more pronounced turnaround, especially considering shares are still trading for 38 times next year's estimated earnings. In addition, keep in mind that ShoreTel is still unprofitable based on generally accepted accounting principles. As a result, until ShoreTel can both pick up the pace and prove it has what it takes to achieve sustained long-term profitability, I prefer to stay on the sidelines.