Polycom ( PLCM), the Pleasanton, Calif.-based communications equipment provider, said its second-quarter earnings fell 25% from the year-ago period, hurt by stock options expense. The company earned $15 million, or 17 cents a share, in the quarter, compared with $20 million, or 20 cents a share, a year ago. Adjusted for items, earnings were 24 cents a share in the most recent quarter. Analysts surveyed by Thomson First Call were expecting earnings of 23 cents a share in the most recent quarter. Second-quarter revenue rose 15.6% from a year ago to $165 million. Analysts were expecting revenue of $162.2 million in the most recent quarter. Segment-wise, second-quarter revenue from products segment rose 15.1% from a year ago to $144.8 million and revenue from services segment rose 19.1% to $20.1 million. The company's backlog grew 50% and deferred revenue increased 46%, as compared with last year. "Voice and video over IP drove our growth again in the second quarter," the company said. "In fact, voice revenues grew 31 percent and video revenues grew by 19 percent year-over-year. The increasing growth rate for video began in Q4 of 2005 and has continued to build through our second quarter of 2006. This IP driver is enabling adoption of Polycom's voice and video communications solutions at unprecedented levels."