PLEASANTON, CA — (Marketwire) — 01/23/12 — Polycom, Inc. (NASDAQ: PLCM), the global
leader in standards-based unified communications (UC), today reported its
earnings for the fourth quarter and fiscal year ended December 31, 2011.
Fourth quarter 2011 consolidated net revenues were a record $407 million,
compared to $340 million for the fourth quarter of 2010. GAAP net income
for the fourth quarter of 2011 was $50 million, or 28 cents per diluted
share, compared to $33 million, or 19 cents per diluted share, for the same
period last year. Non-GAAP net income for the fourth quarter of 2011 was
$74 million, or 41 cents per diluted share, compared to non-GAAP net income
of $43 million, or 24 cents per diluted share, for the fourth quarter of
2010. Note that the share and per share data for all periods presented in
this release have been adjusted to reflect the two-for-one stock split that
was effective July 1, 2011.
For the year ended December 31, 2011, net revenues were $1.5 billion,
compared to $1.2 billion for the year ended December 31, 2010. GAAP net
income for the year ended December 31, 2011 was $136 million, or 75 cents
per diluted share, compared to GAAP net income of $68 million, or 39 cents
per diluted share, for the same period last year. Non-GAAP net income for
the year ended December 31, 2011 was $213 million, or $1.18 per diluted
share, compared to $133 million, or $0.75 per diluted share, for the same
period last year.
The reconciliation between GAAP net income and non-GAAP net income is
provided in the tables at the end of this release.
On a geographic basis, consolidated net revenues for the fourth quarter of
2011 were comprised of:
“2011 closed strong with full-year revenues of $1.5 billion, driven by
particular strength in sales of the Polycom® RealPresence Platform
and broad geographic growth,” said Andrew Miller, Polycom president and
CEO. “Enabled by Polycom-s innovations, we experienced unprecedented
demand for our secure, interoperable, unified collaboration solutions by
both enterprise and service provider customers. Leveraging our
industry-leading technology and powerful network of strategic partners,
Polycom-s cloud, mobility, and software-driven infrastructure strategy is
beginning to yield and we look forward to another year of solid growth in
2012.”
“Polycom generated 20 percent year-over-year revenue growth in Q4, which
drove revenues, operating profits, and operating cash flow to record
levels,” said Michael Kourey, Polycom-s executive vice president, finance
and administration, and CFO. “We are pleased to have achieved significant
operating margin expansion and unprecedented operating cash flow of $122
million in the fourth quarter. Net of the strategic acquisitions and stock
repurchases in the period, Polycom exited 2011 with $592 million in cash
and investments and no debt.”
Q4 2011 Business Highlights
Earnings Call Details
Polycom will hold a conference call today, Jan. 23, 2012, at 5 p.m. EST/2
p.m. PST to discuss its fourth quarter earnings. You may participate by
viewing the webcast at or, for callers in the US
and Canada, by calling 888.227.5826; and for callers outside of the US and
Canada, by calling 303.223.2680. The pass code for the call is “Polycom.”
A replay of the call will also be available at or, for
callers in the US and Canada, at 800.633.8284; and for callers outside of
the US and Canada, at 402.977.9140. The access number for the replay is
21572693. A replay of the call will be available on for
approximately 12 months.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the
“safe harbor” provisions of the Private Securities Litigation Reform Act of
1995 regarding future events, future demand for our products, and the
future performance of the Company, including statements regarding the
expected growth for Polycom in 2012. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially, including the impact of competition on our product sales and
for our customers and partners; the impact of increased competition due to
consolidation in our industry or competition from companies that are larger
or that have greater resources than we do; potential fluctuations in
results and future growth rates; risks associated with general economic
conditions and external market factors; the market acceptance of our
products and changing market demands, including demands for differing
technologies or product and services offerings; our ability to successfully
integrate our acquisitions into our business; possible delays in the
development, availability and shipment of new products; increasing costs
and differing uses of capital; changes in key personnel that may cause
disruption to the business; any disruptive impact to us that may result
from new executive hires; the impact of restructuring actions; and the
impact of global conflicts that may adversely impact our business. Many of
these risks and uncertainties are discussed in the Company-s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2011, and in other
reports filed by Polycom with the SEC. Polycom disclaims any intent or
obligations to update these forward-looking statements.
Polycom reserves the right to modify future product plans at any time.
Products and/or related specifications referenced in this press release are
not guaranteed and will be delivered on a when and if available basis.
GAAP to non-GAAP Reconciliation
To supplement our consolidated financial statements presented on a GAAP
basis, Polycom uses non-GAAP measures of operating results, net income and
income per share, which are adjusted to exclude certain costs, expenses,
gains, and losses we believe appropriate to enhance an overall
understanding of our past financial performance and also our prospects for
the future. These adjustments to our current period GAAP results are made
with the intent of providing both management and investors a more complete
understanding of Polycom-s underlying operational results and trends and
our marketplace performance. For example, the non-GAAP results are an
indication of our baseline performance before gains, losses, or other
charges that are considered by management to be outside of our core
operating results. In addition, these adjusted non-GAAP results are among
the primary indicators management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a substitute
for net income or diluted net income per share prepared in accordance with
generally accepted accounting principles in the United States.
About Polycom
Polycom is the global leader in standards-based unified communications (UC)
solutions for , , and , powered
by the Polycom RealPresence platform. The RealPresence platform
interoperates with the broadest range of business, mobile and social
applications and devices. More than 400,000 organizations trust Polycom
solutions to collaborate and meet face to face from any location for more
productive and effective engagement with colleagues, partners, customers
and prospects. Polycom, together with its broad partner ecosystem, provides
customers with the best TCO, scalability, and security — on-premises,
hosted or cloud delivered. Visit or connect with Polycom on , , and .
© 2012 Polycom, Inc. All rights reserved. POLYCOM®, the Polycom
“Triangles” logo and the names and marks associated with Polycom-s products
are trademarks and/or service marks of Polycom, Inc. and are registered
and/or common law marks in the United States and various other countries.
All other trademarks are property of their respective owners.
Investor Contact:
Laura Graves
Polycom, Inc.
925.924.5630
Press Contact:
Shawn Dainas
Polycom, Inc.
925.924.5676
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