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Friday, October 22, 2010

Third Quarter 2010 Shows Record Earnings for Polycom

By Ed Silverstein, TMCnet Contributor

Polycom, Inc., a provider of unified communications solutions, had record earnings for the third quarter (3Q), which ended Sept. 30. The company said that third quarter 2010 consolidated net revenues were a record $308 million, compared to $243 million for 3Q 2009.


"In the third quarter, revenues grew 27 percent year-over-year, underpinned by record bookings that generated record backlog exiting 3Q," said Michael Kourey, Polycom’s (News - Alert) executive vice president of finance and administration, and CFO, in a statement.

GAAP net income for the third quarter of 2010 was $17 million, or 20 cents per diluted share, compared to $14 million, or 16 cents per diluted share, for the same period last year.

Non-GAAP net income for the third quarter of 2010 was $34 million, or 38 cents per diluted share. This compares to Non-GAAP net income of $27 million, or 31 cents per diluted share, for 3Q 2009.

For the nine months ending Sept. 30, net revenues were $879 million, compared to $699 million for the first nine months of 2009. GAAP net income for the nine months was $35 million, or 40 cents per diluted share, compared to GAAP net income of $37 million, or 44 cents per diluted share, for the same period last year. Non-GAAP net income for the period was $89 million, or $1.02 per diluted share, compared to $74 million, or 86 cents per diluted share, for the first nine months of 2009.

"3Q represented a hallmark quarter for Polycom across the business, validating the speed and precision with which we have executed our go-to-market strategy and underscoring our unique role as the UC ecosystem partner of choice," said Andrew Miller, Polycom president and CEO, in a statement.

"Importantly, we generated sharp growth in network systems revenues, driven by the launch of the Polycom UC Intelligent Core, leveraging our best-in-class infrastructure technology and our highly-effective sales engine,” Miller continued. “These customer wins at the core not only contributed to Polycom's record revenues but, more importantly, bodes well for the proliferation of our collaboration solution into our growing customer base. We also achieved significant gains with the Polycom Open Collaboration Network, which was punctuated by our new strategic relationship with Microsoft (News - Alert) where we are jointly developing and marketing a unified communications solution that leverages the demand for the next-generation Microsoft Lync UC server."

Miller is confident about the company’s future.

"Looking to 4Q and 2011, we believe Polycom is in a unique position to capture the emerging network effect of UC adoption by enterprise, public sector, service providers, SMB, and, ultimately, the connected home,” Miller said. “In order to most effectively deliver on this mounting demand, we recruited a slate of world-class executives from industry leading companies to execute on the strategy that we set forth one year ago….”

“Through our unparalleled innovations, strategic partnerships, and customer-centric go-to-market capabilities, we have been taking share and, more importantly, leading this industry to unprecedented levels of customer adoption. The strategic investment plan is working, our margins are expanding, and we are now staged to take this business to the next level," Miller added.

Polycom, Inc. is a global leader in unified communications solutions with telepresence, video, voice and infrastructure solutions built on open standards.

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