Polycom Announces Revenues Of $348 Million For Fourth 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 fourth quarter ended December 31, 2013. Polycom reported fourth quarter 2013 net revenues of $348 million, non-GAAP net income of $25 million and non-GAAP earnings per diluted share of 16 cents. GAAP net loss for the fourth quarter was $2 million, or 1 cent per share. A reconciliation of GAAP to non-GAAP results is provided in the tables at the end of this press release.

“Polycom posted stronger sequential performance in Q4 2013, driven by on-going strength in UC Personal Devices and improvements in EMEA and Asia Pacific,” said Peter Leav, Polycom President and Chief Executive Officer. “In 2014, our goal is to prioritize growth areas within the business and deliver an improved cost structure that will result in better overall profitability for Polycom.”

“Polycom generated $168 million in operating cash flow in 2013,” said Eric Brown, Polycom Chief Operating Officer and Chief Financial Officer. “We continue to emphasize capital return for shareholders, including our recently executed $400 million share repurchase program. Polycom repurchased a total of 45 million shares in 2013.”

On a comparative basis, consolidated financial results were:
($ in millions, except per share data)       Q4 2013     Q3 2013     Q4 2012
Revenues $ 347.9     $ 336.5     $ 353.0
Non-GAAP Net Income $ 25.4 $ 19.3 $ 30.7
Non-GAAP EPS $ 0.16 $ 0.11 $ 0.17
GAAP Net Income (Loss) $ (2.0 ) $ (24.0 ) $ 1.9
GAAP EPS $ (0.01 ) $ (0.14 ) $ 0.01
 

On a geographic basis, consolidated net revenues were comprised of:
($ in millions) Q4 2013     Q3 2013     Q4 2012    

Sequential

Change
   

Year-Over-

Year Change
Americas $ 170.6     $ 177.3     $ 175.2     -4 %     -3 %
% of revenues 49 % 53 % 50 %
Europe, Middle East & Africa (EMEA) 89.2 80.0 93.4 11 % -5 %
% of revenues 26 % 24 % 26 %
Asia Pacific 88.1 79.2 84.4 11 % 4 %
% of revenues   25 %       23 %       24 %            
Totals * $ 347.9       $ 336.5       $ 353.0       3 %     -1 %
* may not foot due to rounding
 

By product line, inclusive of its service component, consolidated net revenues were comprised of:
($ in millions)     Q4 2013     Q3 2013     Q4 2012    

Sequential

Change
   

Year-Over-

Year Change
UC Group Systems $ 218.1     $ 221.4     $ 238.2     -1 %     -8 %
% of revenues 63 % 66 % 67 %
UC Personal Devices 62.1 56.9 46.8 9 % 33 %
% of revenues 18 % 17 % 13 %
UC Platform 67.7 58.2 68.0 16 % 0 %
% of revenues   19 %       17 %       19 %            
Totals * $ 347.9       $ 336.5       $ 353.0       3 %     -1 %
* may not foot due to rounding
 

In Q4 2013, Polycom generated a total of $50 million in operating cash flow. Operating cash flow on a trailing 12 month basis was $168 million. Cash and investments at the end of Q4 2013 totaled $584 million.

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