) posted first-quarter 2013 adjusted earnings per share
(excluding stock-based compensation items) of 6 cents, breezing
past the Zacks Consensus Estimate of 1 cent.
GAAP net income in the first quarter of 2013 was $2.6 million
or 1 cent per share compared with GAAP net income of $15.1
million or 8 cents per share in the prior-year quarter.
Total revenue in the first quarter of 2013 was $339 million,
down 2.0% year over year, but just above the Zacks Consensus
Estimate of $336 million. Segment wise, UC Group Systems revenues
were $232.4 million, down 3% year over year. UC Personal Devices
revenues were $49.3 million, up 8% year over year. UC Platform
(Network Infrastructure) revenues were $57.1 million, down 4%
year over year.
Geographic Distribution of Sales
In the first quarter of 2013, America generated approximately
$171.0 million of revenues, up 3% year over year. Europe, the
Middle East and Africa generated $89.1 million, down 5% year over
year. Asia-Pacific accounted for the remaining $78.7 million,
down 10% year over year.
Gross margin in the reported quarter was 58.8% compared with
59.7% in the year-ago quarter. Quarterly operating expenses were
$199.6 million, up 4.9% year over year. The increase in operating
expenses was based on higher restructuring and research and
At the end of first-quarter 2013, Polycom had nearly $682.8
million of cash and short-term investments on its balance sheet
compared with $674.3 million at the end of 2012. Its balance
sheet remained clear of any outstanding debt at the end of the
first quarter of 2013.
Cash flow from operations at the end of the first quarter of
2013 was $49.0 million, up from $32.0 million at the end of the
first quarter of 2012. Free cash flow (cash flow from operations
less capital expenditure) was $36.3 million at the end of
first-quarter 2013 up from $16.2 million at the end of 2012.
Currently, Polycom Inc. carries a Zacks Rank #3 (Hold).
Other Stocks to consider
Other stocks worth considering in this sector include
Motorola Solutions Inc.
). Currently QCOM carries a Zacks Rank #1 (Strong Buy) while MSI
and T carry a Zacks Rank #2 (Buy).
MOTOROLA SOLUTN (MSI): Free Stock Analysis
POLYCOM INC (PLCM): Free Stock Analysis
QUALCOMM INC (QCOM): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
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