3 questions: John Combs, CEO ShoreTel

Title: Chairman, president and chief executive officer

Company: ShoreTel Inc., Internet telephone service, Sunnyvale

Q: This is your company's first appearance on The Chronicle 200 - at No. 193. How were you able to increase sales last year in such a bleak economy?

A: The first thing we've been able to do is maintain focus. If you're an engineer, engineer. If you're a salesperson, sell. The second thing we've done is make sure the management team is very visible. You're going out to see the distribution partners, the customers. You're pressing the flesh, meeting people.

Q: In this kind of climate, how do you convince potential customers to buy? Especially when they may think, "Oh, I've already got phones. I don't need Internet phones."

A: I will tell you, it is a grind. You go straight to the economics. I was talking yesterday with a prospective customer. I told them I could cut their communications bill in half and give them a new communications system. And what they have today is one step above a tin can and a string.

Q: Like a lot of companies, you've cut staff this year. Can you keep up the research and development you need while still cutting costs?

A: There's nothing in the cost-reduction activities we did a few weeks ago that would put that in jeopardy. You look over time, and the companies that continue to invest - at a lower level, but continue to invest - during a downturn are the ones that emerge stronger on the other side.

Interview by David R. Baker, dbaker@sfchronicle.com. Edited for space and clarity.

This article appeared on page K - 5 of the San Francisco Chronicle