) posted fourth-quarter 2012 adjusted earnings per share
(excluding stock-based compensation items) of 4 cents, missing
the Zacks Consensus Estimate by a penny.
GAAP net income in the fourth quarter of 2012 was $2.2 million or
1 cent per share compared with a GAAP net income of $49.6 million
or 28 cents per share in the prior-year quarter.
Total revenue in the fourth quarter of 2012 was $353 million,
down 8.6% year over year, but just above the Zacks Consensus
Estimate of $352 million. Segment wise, UC Group Systems revenue
was $238.2 million, down 8% year over year. UC Personal Devices
revenue was $46.8 million, up 2% year over year. UC Platform
(Network Infrastructure) revenue was $68 million, down 15% year
Geographic Distribution of Sales
In the fourth quarter of 2012, America generated approximately
$175.2 million of revenue, down 3% year over year. Europe, Middle
East and Africa generated $93.4 million, down 10% year over year.
Asia-Pacific accounted for the remaining $84.4 million, down 18%
year over year.
Gross margin in the reported quarter was 58.6% compared with
60.6% in the year-ago quarter. Quarterly operating expenses, at
$202.3 million, were up 4% year over year. The increase in
operating expenses was based on higher office and research and
At the end of 2012, Polycom had nearly $674.3 million of cash and
short-term investments on its balance sheet compared with $534.6
million at the end of 2011. Its balance sheet remained clear of
any outstanding debt at the end of 2012.
Cash flow from operations at the end of 2012 was $187 million,
down from $299.6 million at the end of 2011. Free cash flow (cash
flow from operation less capital expenditure) was $119.4 million
at the end of 2012 down from $230.4 million at the end of 2011.
Other Stocks Set for Earnings Release
Some other companies, which are about to release their financial
results in the upcoming days are
), which will report its second quarter fiscal 2013 results on
Jan 24 while
Cisco Systems Inc.
) is set to release its second quarter fiscal 2013 results on Feb
At present, Polycom remains the only pure play unified
collaborative solutions provider. The company stands to gain as
enterprises, governments and educational institutions
increasingly recognize the productivity-enhancing benefits of
video conferencing. The company has already formed a consortium
of open video exchange cloud with 14 leading telecom service
providers across the world, which we believe will act as
catalysts for growth going forward.
Notably, Polycom entered into a strategic agreement with
), to offer cloud-based video conferencing services which will
its position in the immersive Telepresence market, where it has
been battling with Cisco for the top position.
Currently, Polycom Inc. carries a Zacks Rank #3 (Hold).
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