Polycom reports record revenues

Company increases net revenues to $336 million in Q2 2011 from $295 million in Q2 2010

By Georgina Enzer Published July 26, 2011

Polycom has reported record consolidated net revenues of $366 million for the second quarter of 2011, compared to $295 million for the second quarter of 2010.

GAAP net income Q2 was up 123% to $29 million, from $13 million, for the same quarter last year.

"Q2 was a hallmark quarter for Polycom, both in terms of strategic achievement and financial accomplishments," said. "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," said Andrew Miller, Polycom president and CEO.

Net revenues for the six months ending in on 30^th June 2011 were $710 million compared to $571 million for the first six months of 2010.

"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 $85m. As a result of these excellent operating results, Polycom exited Q2 with $609 million in cash and investments and no debt."

Europe, Middle East and Africa contributed to 24% or $89.3m of consolidated net revenues for the second quarter of 2011 and the Americas contributed 52% net revenue in Q2 2011 or $189.2m.

The Asia Pacific region saw increasing growth contributing 24% or $87.1m, compared to 22% of net revenue in Q2 2010.

"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 optimise 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," said Miller.