Net income for the December-ended quarter of 16 cents a share exceeded analyst expectations by a penny, according to analysts surveyed by Yahoo! Finance. Revenue of $348 million, though a 1.4% year-over-year decrease, beat consensus by $6.3 million.
Unified communications (UC) personal devices -- hardware and software offering real-time communication services such as video conferencing, speech recognition and instant messaging -- saw the strongest growth with sales increasing 33% compared to the year-ago quarter.
"Polycom posted stronger sequential performance in Q4 2013, driven by ongoing strength in UC Personal Devices and improvements in EMEA and Asia Pacific," said CEO Peter Leav in a statement. "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."
After the bell, Polycom shares surged 6.6% to $12.55.
TheStreet Ratings team rates POLYCOM INC as a Hold with a ratings score of C-. The team has this to say about their recommendation:
"We rate POLYCOM INC (PLCM) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."