This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Polycom Announces Revenues Of $336 Million For Third Quarter 2013

Polycom, Inc. (Nasdaq: PLCM), the global leader in open, standards-based unified communication and collaboration (UC&C), today reported financial results for the third quarter ended September 30, 2013. Polycom reported third quarter 2013 net revenues of $336 million, non-GAAP net income of $19 million and non-GAAP earnings per diluted share of 11 cents. GAAP net income for the third quarter was a loss of $24 million, or 14 cents per share. A reconciliation of GAAP to non-GAAP results is provided in the tables at the end of this press release.

“Polycom’s financial performance in Q3 was on target with our expectations, driven by our U.S. Enterprise and voice related businesses, partially offset by a more challenging quarter in Asia Pacific,” stated Kevin Parker, Polycom’s Chairman and interim Chief Executive Officer. “We continue to prioritize those areas of the business that maximize growth, while also pursuing opportunities to reduce expenses and drive expanded profitability.”

“Our third quarter results demonstrate the diversity of our revenue base, including growth from voice and services,” continued Eric Brown, Polycom Chief Operating Officer and Chief Financial Officer. “We announced a new $400 million return of capital program, including a Term Loan A financing and a tender offer for our shares, and closed the quarter with trailing 12 month operating cash flow of $183 million.”

On a comparative basis, consolidated financial results were:

($ in millions, except per share data)   Q3 2013   Q2 2013   Q3 2012
Revenues $ 336.5 $ 345.2 $ 335.4
Non-GAAP Net Income $ 19.3 $ 25.9 $ 17.2
Non-GAAP EPS $ 0.11 $ 0.15 $ 0.10
GAAP Net Income (Loss) $ (24.0 ) $ 5.3 $ (14.8 )
GAAP EPS $ (0.14 ) $ 0.03 $ (0.08 )
 

On a geographic basis, consolidated net revenues were comprised of:

($ in millions)   Q3 2013   Q2 2013   Q3 2012  

Sequential Change

 

Year-Over- Year Change

Americas $ 177.3 $ 175.6 $ 171.0 1% 4%
% of revenues 53% 51% 51%
Europe, Middle East & Africa (EMEA) 80.0 79.7 78.6 0% 2%
% of revenues 24% 23% 23%
Asia Pacific 79.2 89.9 85.9 -12% -8%
% of revenues   23%   26%   26%    
Totals * $ 336.5 $ 345.2 $ 335.4 -3% 0%
* may not foot due to rounding
 

By product line, inclusive of its service component, consolidated net revenues were comprised of:

($ in millions)   Q3 2013   Q2 2013   Q3 2012  

Sequential Change

 

Year-Over- Year Change

UC Group Systems $ 221.4 $ 233.0 $ 225.8 -5% -2%
% of revenues 66% 67% 67%
UC Personal Devices 56.9 50.8 45.7 12% 24%
% of revenues 17% 15% 14%
UC Platform 58.2 61.4 63.9 -5% -9%
% of revenues   17%   18%   19%    
Totals * $ 336.5 $ 345.2 $ 335.4 -3% 0%
* may not foot due to rounding
 

In Q3 2013, Polycom generated a total of $36 million in operating cash flow. Operating cash flow on a trailing 12 month basis was $183 million. Cash and investments at the end of Q3 2013 totaled $954 million following the close of the $250 million Term Loan A facility. Deferred revenue was $260 million. Polycom repurchased $18 million of common stock in Q3 2013. As of September 30, 2013, Polycom has $400 million remaining in share repurchase authorization, inclusive of the $250 million Tender Offer launched on September 13, 2013, which will expire on October 30, 2013, unless extended.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs