Unified Communications Featured Article
April 17, 2008
Polycom Announces First Quarter 2008 Financial Results
By Tim GrayPolycom (News - Alert), a leading provider of unified collaborative communications solutions, has reported substantial growth and increased earnings for the first quarter this year over the same period last year.
The consolidated net revenues for the Pleasanton, Calif.-based company were $258.9 million, compared to $192.7 million for the first quarter of 2007. SpectraLink contributed $39.4 million to net revenues for the first quarter of 2008 compared to $2.1 million in the first quarter of 2007 for the six-day period following the acquisition, which was completed on March 26, 2007, according to the company.
In addition, non-GAAP net income for the first quarter of 2008 was $32.7 million, or 36 cents per diluted share. This compares to Non-GAAP net income of $28.6 million, or 30 cents per diluted share, for the first quarter of 2007. GAAP net income for the first quarter of 2008 was $14.2 million, or 16 cents per diluted share, compared to $10.2 million, or 11 cents per diluted share, for the same period last year.
"Unified collaboration continues to be a key priority for our customers worldwide," said Robert Hagerty, chairman and CEO. "We believe the fast return on investment of our solution, compliance with the green initiatives in Europe and other important markets, and globalization of the workforce, are driving adoption within enterprise and public sector customers alike.
On a product line basis, consolidated net revenues for the first quarter of 2008 were comprised of: 62 percent video solutions, or $159.5 million (51 percent video communications, or $130.3 million, and 11 percent network systems, or $29.2 million); and 38 percent voice communications, or $99.4 million.
”We are pleased to report that first quarter revenues for our SpectraLink wireless products grew sharply from the fourth quarter, validating both the customer demand for voice mobility solutions and the successful completion of the integration of this strategically important acquisition," Hagerty said.
In comparison with the first quarter of 2007, in which consolidated net revenues were comprised of: 71 percent video solutions, or $136.6 million (56 percent video communications, or $108.0 million, and 15 percent network systems, or $28.6 million); and 29 percent voice communications, or $56.1 million.
"Looking forward, we expect growing contributions from our strategic partnerships such as Microsoft, Nortel (News - Alert), Avaya, IBM, and others as we deliver our highly differentiated video and voice collaboration solutions. Coupled with these partnerships, our new offerings in telepresence, HD video, and voice over IP
products differentiate Polycom and illustrate the exceptional value proposition that our innovations are delivering to customers,” said Hagerty.
With these products and partnerships, Polycom says is best positioned to capture customer demand being driven by rapidly growing travel costs, globalization, and environmental concerns. Further, through the sales investments we made in late 2007 and in Q1, the company has increased our coverage in both existing and emerging markets. This is enabling Polycom to drive close customer relationships that deliver near-term business opportunity and long-term annuities through product adoption and service opportunities.
"We delivered solid operating results in the first quarter, including revenues of $258.9 million and $36.3 million in operating cash flow," said Michael Kourey, senior vice president, finance and administration, and CFO. "In concert with these operating results, backlog and deferred revenues grew to record levels. During the first quarter, we purchased $60 million in Polycom stock, exiting the quarter with a remaining $80 million authorization under the current share repurchase program."
Tim Gray is a Web Editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To see more of his articles, please visit Tim Gray’s columnist page.
Don't forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users.
The consolidated net revenues for the Pleasanton, Calif.-based company were $258.9 million, compared to $192.7 million for the first quarter of 2007. SpectraLink contributed $39.4 million to net revenues for the first quarter of 2008 compared to $2.1 million in the first quarter of 2007 for the six-day period following the acquisition, which was completed on March 26, 2007, according to the company.
In addition, non-GAAP net income for the first quarter of 2008 was $32.7 million, or 36 cents per diluted share. This compares to Non-GAAP net income of $28.6 million, or 30 cents per diluted share, for the first quarter of 2007. GAAP net income for the first quarter of 2008 was $14.2 million, or 16 cents per diluted share, compared to $10.2 million, or 11 cents per diluted share, for the same period last year.
"Unified collaboration continues to be a key priority for our customers worldwide," said Robert Hagerty, chairman and CEO. "We believe the fast return on investment of our solution, compliance with the green initiatives in Europe and other important markets, and globalization of the workforce, are driving adoption within enterprise and public sector customers alike.
On a product line basis, consolidated net revenues for the first quarter of 2008 were comprised of: 62 percent video solutions, or $159.5 million (51 percent video communications, or $130.3 million, and 11 percent network systems, or $29.2 million); and 38 percent voice communications, or $99.4 million.
”We are pleased to report that first quarter revenues for our SpectraLink wireless products grew sharply from the fourth quarter, validating both the customer demand for voice mobility solutions and the successful completion of the integration of this strategically important acquisition," Hagerty said.
In comparison with the first quarter of 2007, in which consolidated net revenues were comprised of: 71 percent video solutions, or $136.6 million (56 percent video communications, or $108.0 million, and 15 percent network systems, or $28.6 million); and 29 percent voice communications, or $56.1 million.
"Looking forward, we expect growing contributions from our strategic partnerships such as Microsoft, Nortel (News - Alert), Avaya, IBM, and others as we deliver our highly differentiated video and voice collaboration solutions. Coupled with these partnerships, our new offerings in telepresence, HD video, and voice over IP
products differentiate Polycom and illustrate the exceptional value proposition that our innovations are delivering to customers,” said Hagerty.With these products and partnerships, Polycom says is best positioned to capture customer demand being driven by rapidly growing travel costs, globalization, and environmental concerns. Further, through the sales investments we made in late 2007 and in Q1, the company has increased our coverage in both existing and emerging markets. This is enabling Polycom to drive close customer relationships that deliver near-term business opportunity and long-term annuities through product adoption and service opportunities.
"We delivered solid operating results in the first quarter, including revenues of $258.9 million and $36.3 million in operating cash flow," said Michael Kourey, senior vice president, finance and administration, and CFO. "In concert with these operating results, backlog and deferred revenues grew to record levels. During the first quarter, we purchased $60 million in Polycom stock, exiting the quarter with a remaining $80 million authorization under the current share repurchase program."
Tim Gray is a Web Editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To see more of his articles, please visit Tim Gray’s columnist page.
Don't forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users.
