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Polycom Announces Revenues of $353 Million for Fourth Quarter 2012
Posted on Wednesday, January 23, 2013
Sequential Revenue Growth in All Major Product Categories
San Jose, California – January 23, 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, 2012.
Fourth quarter 2012 consolidated net revenues were $353 million, up 5 percent sequentially, growing in all product categories, compared to $335 million for the third quarter of 2012 and down 9 percent year-over-year compared to $386 million for the fourth quarter of 2011. Non-GAAP net income for the fourth quarter of 2012 was $31 million, or 17 cents per diluted share, compared to non-GAAP net income of $17 million or 10 cents per diluted share for the third quarter of 2012, and non-GAAP net income of $68 million, or 38 cents per diluted share for the fourth quarter of 2011. GAAP net income for the fourth quarter of 2012 was $2 million, or 1 cent per diluted share, compared to GAAP net income of $50 million, or 28 cents per diluted share, for the same period last year. All periods presented in this release have been adjusted to reflect the classification of Polycom’s Enterprise Wireless Solutions business as discontinued operations.  The reconciliation between GAAP net income and non-GAAP net income is provided in the tables at the end of this release.
“Polycom has executed very well, demonstrating clear product leadership during the UC&C market transition in 2012,” stated Andrew M. Miller, Polycom President and Chief Executive Officer.  “We are excited to begin 2013 with what we believe is the most comprehensive product portfolio in the industry and improved sales and go-to-market capabilities that enable new business models for collaboration, including software, cloud-delivered video, and virtualization.”
“We are pleased to report sequential revenue growth in all product categories, including UC Platform, which is above a quarter billion dollar per year run rate,” continued Eric Brown, Polycom Chief Operating Officer and Chief Financial Officer.  “Services revenue also increased both sequentially and year-over-year in line with our increased focus on this area of the business.”
On a geographic basis, consolidated net revenues from continuing operations for the fourth quarter of 2012 were comprised of:
  • 50 percent Americas, or $175.2 million, an increase of 2 percent sequentially and a decrease of 3 percent year-over-year;
  • 26 percent Europe, Middle East, and Africa (EMEA), or $93.4 million, an increase of 19 percent sequentially and a decrease of 10 percent year-over-year; and
  • 24 percent Asia Pacific, or $84.4 million, a decrease of 2 percent sequentially and a decrease of 18 percent year-over-year.
By product line, inclusive of its service component, consolidated net revenues from continuing operations for the fourth quarter of 2012 were comprised of:
  • UC Group Systems of $238.2 million, an increase of 5 percent sequentially, and a decrease of 8 percent year-over-year;
  • UC Personal Devices of $46.8 million, an increase of 2 percent both sequentially and year-over-year; and
  • UC Platform of $68.0 million, an increase of 6 percent sequentially and a decrease of 15 percent year-over-year.
  • In Q4 2012, Polycom generated a total of $66 million in operating cash flow and completed share repurchases of $5 million. Operating cash flow on a trailing 12 month basis was $187 million. Deferred revenue balances increased 2 percent sequentially to $250 million.
Q4 2012 Business Highlights
  • Announced a royalty-free license offering for an interoperable implementation of H.264 Scalable Video Coding (SVC) software technology.
  • Unveiled a comprehensive set of breakthrough products at our Strategy Day in October, including:
  • Polycom® RealPresence® CloudAXIS™ Suite, a software extension of the Polycom® RealPresence® Platform for private and public cloud deployments – available in both an enterprise and partner/service provider edition – that enables universal access to enterprise-grade video collaboration to any business (B2B) or consumer (B2C) at the highest quality, reliability, and security
  • Powerful Polycom RealPresence Platform enhancements, including the industry’s first open standards-based SVC (Scalable Video Coding), with 3X HD multipoint video call capacity for greater scalability, dramatically lower TCO, superior performance, and backwards- and forwards-compatibility to protect customer investments—all available through a software update
  • Polycom® RealPresence® Collaboration Server 800s, Virtual Edition, the industry’s first multi-protocol, integrated software MCU that runs on industry-standard servers
  • Next-generation video endpoints, including new Polycom® RealPresence® Group Series products, the new ultra-slim Polycom® RealPresence® VisualEdge™ Executive Desktop offering, and Polycom RealPresence software for PCs and mobile devices.
  • Launched Polycom® VVX® 600 solutions, offering workers a flexible and intuitive phone that integrates seamlessly with popular UC&C productivity applications and Bluetooth headsets for hands-free privacy. Users can also join video conferences via the optional Polycom VVX Camera, which Polycom also unveiled for both Polycom VVX 600 and Polycom® VVX® 500 business media phones.
  • Introduced a series of new customer financing options that help free customers from the limitations of quarterly capital expense budgets and allow more organizations to implement UC&C solutions that fully meet their needs.
  • Announced enhancements to the Company's video content management solutions, including a new cloud-delivered version of the Polycom® RealPresence® Media Manager and Polycom® RSS™ 4000 v8.5, which help organizations record, stream, manage and view live and on-demand video content quickly, easily and cost-effectively.
  • Announced the worldwide availability of the Polycom® HDX® Series 3.1, a software update for the Company's popular HDX video collaboration solution for executive desktops and rooms.