PLCM ($21-$20-$23) Beats by 1 cent, new products, new customers.
Thursday July 19, 4:30 pm Eastern Time
Press Release
SOURCE: Polycom, Inc.
Polycom Reports Second Quarter Results
Revenues at $84.5 Million for Q2 2001; Positive Operating Cash Flow of $13.4 Million in Q2
MILPITAS, Calif., July 19 /PRNewswire/ -- Polycom®, Inc. (Nasdaq: PLCM - news), a leader in broadband communication solutions, today reported its operating results for the second quarter ended June 30, 2001.
Second quarter consolidated net revenues were $84.5 million, compared to $87.1 million recorded for the second quarter of 2000. Pro forma net income in the second quarter, which excludes the effects of acquisition-related costs, goodwill amortization and other nonrecurring charges, was $10.9 million, or 13 cents per diluted share. This compares to a pro forma net income of $12.0 million, or 15 cents per diluted share, for the second quarter of 2000.
For the six months ended June 30, 2001, net revenues grew to $180.7 million, compared to $162.6 million for the first six months of 2000. Pro forma net income for the period was $26.4 million, compared to $22.6 million for the first six months of 2000. These results exclude the effects of acquisition-related costs, goodwill amortization and other nonrecurring items.
On a product line basis, net revenues for the second quarter of 2001 were comprised of 47 percent video communications, or $39.3 million; 25 percent network systems, or $21.0 million; 23 percent voice communications, or $19.8 million; and 5 percent network access, or $4.4 million. This compares to the second quarter of 2000, in which revenues were comprised of 60 percent video communications, or $52.3 million; 11 percent network systems, or $9.6 million; 25 percent voice communications, or $21.6 million; and 4 percent network access, or $3.6 million.
Including the effect of the pro forma items, net income for the second quarter of fiscal 2001 was $6.3 million, or 7 cents per diluted share, compared with $5.5 million, or 7 cents per diluted share, for the same period last year. For the six months ended June 30, 2001, including the effect of the pro forma items, net income was $12.8 million, or 15 cents per share, compared to $17.3 million, or 21 cents per share, for the year ago period.
The prior year figures include the results of Accord Networks, which was acquired by Polycom on February 28, 2001 and accounted for as a pooling of interests.
``Polycom achieved significant gains through new product activity and customer wins in the second quarter,'' stated Robert Hagerty, president and CEO. ``Our network systems business grew significantly in the second quarter, validating the increased use of video communications and the demand for video network infrastructure by both the enterprise and service provider. During the second quarter, we announced that enterprises such as Ford Motor Company and Procter & Gamble have selected Polycom for video deployment throughout their organizations worldwide. In addition, we announced new agreements with Tech Data, Sprint, N2N Solutions and VocalData, focusing on sales of Polycom's IP-based voice and video products.''
Hagerty continued, ``Polycom continued to deliver a wide range of new products in the second quarter such as the Conference Station 7935, an internet protocol (IP) SoundStation® product for the Cisco AVVID call architecture and VoiceStation(TM) 100, a voice conferencing product for the small to mid-sized enterprise. In addition, we launched Visual Concert(TM) PC, extending ViewStation(TM)'s data collaboration capabilities. We also announced new G.SHDSL versions of our NetEngine(TM) integrated access devices. Further, we launched ViaVideo(TM) 2.0, providing Windows NT compatibility and video mail, extending the reach of our leading desktop video product. Finally, we launched the Accord® GW-25 and GW-45 IP Gateways, enabling voice and video communication between IP-based and traditional circuit switched networks. In summary, our product machine at Polycom continues to generate a tremendous level of new products across all of our product lines.''
``Polycom generated a gross margin of 56.9 percent and a pro forma operating income of 15 percent in the second quarter,'' said Michael Kourey, senior vice president, finance and administration, and CFO. ``We accomplished this operating margin while continuing to fund our research and development organizations, which drives the significant new product activity. Polycom's margins, along with a reduction in inventory, generated a positive operating cash flow of $13.4 million in the second quarter.''
About Polycom
Polycom, Inc. develops, manufactures and markets a full range of high-quality, easy-to-use and affordable voice and video communication products and network infrastructure management and access solutions. Polycom's integrated communication solutions enable business users to immediately realize the benefits of video, voice and data over rapidly growing converged networks.
As has been noted on the Company's web site since July 13, 2001, Polycom will hold a conference call today at 5:00 p.m. EST/2:00 p.m. PST to discuss its second quarter earnings. Robert Hagerty, chairman, president and CEO, and Michael Kourey, chief financial officer will host the conference. You may participate by viewing the webcast at www.polycom.com or, for callers in the U.S. and Canada, call 888-790-2854; and for callers outside of the U.S. and Canada, call 212-676-5383. A replay of the call will also be available through July 26 at www.polycom.com or, for callers in the U.S. and Canada, at 800-633-8284; and for callers outside of the U.S. and Canada, at 858-812-6440. The access number for the replay is 19336661.
NOTE: Polycom, the Polycom logo design, Accord and SoundPoint Pro are registered trademarks and ViewStation, VoiceStation, NetEngine, ViaVideo are trademarks of Polycom, Inc. in the U.S. and various countries. |
