PLEASANTON, CA — (Marketwire) — 07/21/11 — Polycom, Inc. (NASDAQ: PLCM), a global
leader in unified communications (UC), today reported its earnings for the
second quarter ended June 30, 2011.
Second quarter 2011 consolidated net revenues were a record $366 million,
compared to $295 million for the second quarter of 2010. GAAP net income
for the second quarter of 2011 was $29 million, or 16 cents per diluted
share, compared to $13 million, or 7 cents per diluted share, for the same
period last year. Non-GAAP net income for the second quarter of 2011 was
$48 million, or 26 cents per diluted share, compared to non-GAAP net income
of $30 million, or 17 cents per diluted share, for the second quarter of
2010.
For the six months ended June 30, 2011, net revenues were $710 million,
compared to $571 million for the first six months of 2010. GAAP net income
for the six months ended June 30, 2011 was $63 million, or 34 cents per
diluted share, compared to GAAP net income of $18 million, or 10 cents per
diluted share, for the same period last year. Non-GAAP net income for the
period was $91 million, or 50 cents per diluted share, compared to $55
million, or 32 cents per diluted share, for the first six months of 2010.
Note that the share and per share data for all periods presented in this
release have been adjusted to reflect a two-for-one stock split that was
effective July 1, 2011.
The reconciliation between GAAP net income and non-GAAP net income is
provided in the tables at the end of this release.
On a geographic basis, consolidated net revenues for the second quarter of
2011 were comprised of:
On a geographic basis, consolidated net revenues for the second quarter of
2010 were comprised of:
“Q2 was a hallmark quarter for Polycom, both in terms of strategic
achievement and financial accomplishments,” said Andrew Miller, Polycom
president and CEO. “We made significant progress with our key partners
through the Polycom Open Collaboration Network, experienced significant
acceleration in the adoption of our UC Intelligent Core network
infrastructure solutions, and again benefitted from broad-based demand for
our suite of solutions across all major geographies.”
“Specifically, during the second quarter, we announced the acquisition of
HP-s Visual Collaboration business which is expected to close later this
month, and the execution of a strategic agreement that makes Polycom an
exclusive partner to HP for our wide array of telepresence and video
solutions. We also expanded our strategic partnership with Microsoft
through our upcoming launch of the Polycom CX7000 unified collaboration
system that natively integrates with Microsoft-s leading Lync platform.
Built on this and our numerous other strategic successes with Microsoft, we
were thrilled to be named the 2011 Microsoft Unified Communications
Innovation Partner of the Year. As a further testament to our role as UC
ecosystem partner of choice, we also announced the launch of the industry-s
first open video exchange cloud with AT&T, BT Conferencing, Telefonica,
Verizon, and other global leading service providers, enabling B2B and B2C
video communications and the network effect of video adoption worldwide.”
“In Q2, we continued to experience strong demand in emerging markets such
as China, India, Russia, and Brazil and also began to see momentum in
select verticals such as the US Federal market, yielding record revenues in
each major geography and product category. In fact, in order to fully
optimize our opportunity, I have added Tracey Newell to the executive team
as Polycom-s new executive vice president of Global Sales. Each of the
theatre presidents and global sales operations will report to her in this
newly created role. Tracey is the ideal fit for this position and an
excellent addition to the team with her proven go-to-market track record in
both Cloud and customer premise-based sales at Juniper Networks and Cisco
Systems.”
“In summary, we continue to leverage our unparalleled position in the UC
industry as the only independent provider of scale. Through our Cloud,
Mobility, and Ecosystem advances and market gains, we believe Polycom is
poised to capture the momentum of the video communications market. With
these exciting market dynamics and Polycom-s industry-leading capabilities,
we expect to continue to deliver strong revenue growth and continued
operating margin expansion,” concluded Miller.
“Polycom generated strong sequential and year-over-year growth in revenues,
gross margins, and operating margins in the second quarter,” said Michael
Kourey, Polycom-s executive vice president, finance and administration, and
CFO. “Coupled with effective working capital management, we delivered a
record quarterly operating cash flow of $85 million. As a result of these
excellent operating results, Polycom exited Q2 with $609 million in cash
and investments and no debt.”
About Polycom
Polycom, Inc. (NASDAQ: PLCM) is a global leader in unified communications
solutions with industry-leading , , , and solutions built on open standards.
Polycom powers smarter conversations, transforming lives and businesses
worldwide. Please visit for more information or connect
with Polycom on , , and .
This release contains forward-looking statements within the meaning of the
“safe harbor” provisions of the Private Securities Litigation Reform Act of
1995 regarding future events, future demand for our products, and the
future performance of the Company, including statements regarding the
closing of Polycom-s acquisition of HP-s Visual Collaboration business, our
future offering of the Polycom CX7000 unified collaboration system, Polycom
as being poised to capture the momentum of the video communications market
and the future delivery of strong revenue growth and expanding operating
margins by Polycom. These forward-looking statements are subject to risks
and uncertainties that may cause actual results to differ materially,
including the fact that the Company-s continuing strategic investment plan
may not yield the intended results or may take longer than originally
anticipated to achieve such results; the impact of competition on our
product sales and for our customers and partners; the impact of increased
competition due to consolidation in our industry or competition from
companies that are larger or that have greater resources than we do;
potential fluctuations in results and future growth rates; risks associated
with general economic conditions and external market factors; the market
acceptance of Polycom-s products and changing market demands, including
demands for differing technologies or product and services offerings; our
ability to successfully integrate our acquisitions into our business;
possible delays in the development, availability and shipment of new
products; increasing costs and differing uses of capital; changes in key
personnel that may cause disruption to the business; any disruptive impact
to the Company that may result from the new executive hires; the impact of
restructuring actions; and the impact of global conflicts that may
adversely impact our business. Many of these risks and uncertainties are
discussed in the Company-s Quarterly Report on Form 10-Q for the quarter
ended March 31, 2011, and in other reports filed by Polycom with the SEC.
Polycom disclaims any intent or obligations to update these forward-looking
statements.
To supplement our consolidated financial statements presented on a GAAP
basis, Polycom uses non-GAAP measures of operating results, net income and
income per share, which are adjusted to exclude certain costs, expenses,
gains, and losses we believe appropriate to enhance an overall
understanding of our past financial performance and also our prospects for
the future. These adjustments to our current period GAAP results are made
with the intent of providing both management and investors a more complete
understanding of Polycom-s underlying operational results and trends, and
our marketplace performance. For example, the non-GAAP results are an
indication of our baseline performance before gains, losses, or other
charges that are considered by management to be outside of our core
operating results. In addition, these adjusted non-GAAP results are among
the primary indicators management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a substitute
for net income or diluted net income per share prepared in accordance with
generally accepted accounting principles in the United States.
Earnings Call Details
As has been noted on the Company-s web site since July 7, 2011, Polycom
will hold a conference call today, July 21, 2011, at 5 p.m. EDT/2 p.m. PDT
to discuss its second quarter earnings. Andrew Miller, president and CEO,
and Michael Kourey, chief financial officer, will host the conference call.
You may participate by viewing the webcast at or,
for callers in the US and Canada, by calling 800.913.1647; and for callers
outside of the US and Canada, by calling 212.231.2900. The pass code for
the call is “Polycom.” A replay of the call will also be available at
or, for callers in the US and Canada, at 800.633.8284; and
for callers outside of the US and Canada, at 402.977.9140. The access
number for the replay is 21529290. A replay of the call will be available
on for approximately 12 months.
Polycom reserves the right to modify future product plans at any time.
Products and/or related specifications referenced in this press release are
not guaranteed and will be delivered on a when and if available basis.
© 2011 Polycom, Inc. All rights reserved. POLYCOM®, the Polycom
“Triangles” logo and the names and marks associated with Polycom-s products
are trademarks and/or service marks of Polycom, Inc. and are registered
and/or common law marks in the United States and various other countries.
All other trademarks are property of their respective owners.
Investor Contact:
Laura Graves
Polycom, Inc.
925.924.5630
Press Contact:
Shawn Dainas
Polycom, Inc.
925.924.5676
You must be logged in to post a comment Login