7/19...PLCM...Reports Second Quarter Results
Revenues Grow 69% to $77.5 Million for Q2 2000; Net Income Grows 78%
MILPITAS, Calif., July 19 /PRNewswire/ -- Polycom®, Inc. (Nasdaq: PLCM - news), a leader in broadband solutions, today reported its operating results for the second quarter ending June 30, 2000.
Second quarter consolidated net revenues grew to $77.5 million, an increase of 69% compared to $46.0 million recorded for the second quarter of 1999. Net income in the second quarter was $11.6 million, or 31 cents per diluted share, up 78% from $6.5 million, or 18 cents per diluted share, in the second quarter of 1999.
For the six months ended June 30, 2000, net revenues were $144.8 million, up 66% from the same period last year. Net income for the first six months of 2000 was $23.2 million, or 61 cents per diluted share. This is up 63% from $14.2 million, or 40 cents per diluted share for the comparable period of 1999. Excluding the $1.8 million of litigation reserves released in the first quarter due to Polycom's dismissal from the VTEL litigation, earnings were 58 cents per diluted share for the six months ended June 30, 2000. For the comparable period last year, on a fully taxed basis, earnings per diluted share were 35 cents.
On a product line basis, net revenues for the second quarter of 2000 were comprised of 5% network access, or $3.6 million; 67% video communications, or $52.3 million; and 28% voice communications, or $21.6 million. This compares to the second quarter of 1999, in which revenues were comprised of 2% network access, or $0.9 million; 62% video communications, or $28.4 million; and 36% voice communications, or $16.7 million.
About Polycom
Polycom develops, manufactures and markets high-quality, easy-to-use communications equipment that enables enterprise users to access broadband network services and leverage increased bandwidth to more conveniently conduct voice, video and data communications. Polycom's product lines include network access products and enterprise voice and video communications equipment.
NOTE: Polycom, the Polycom logo design, and SoundPoint Pro are registered trademarks and ViewStation, NetEngine, ViaVideo, StreamStation, and MeetingSite are trademarks of Polycom, Inc. in the U.S. and various countries.
POLYCOM, INC.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30 June 30 June 30 June 30
2000 1999 2000 1999
Net revenues $77,488 $45,981 $144,783 $87,295
Cost of net revenues 34,170 20,833 63,907 40,366
Gross profit 43,318 25,148 80,876 46,929
Operating expenses:
Sales and marketing 14,822 8,369 26,982 15,780
Research and development 8,483 5,045 15,932 8,971
General and
administrative 3,514 1,942 6,810 3,494
Litigation reserve release -- -- (1,843) --
Total operating
expenses 26,819 15,356 47,881 28,245
Operating income 16,499 9,792 32,995 18,684
Interest income, net 843 392 1,633 695
Other income (expense) (35) (13) 36 (19)
Income before provision
for income taxes 17,307 10,171 34,664 19,360
Provision for income taxes 5,706 3,667 11,434 5,116
Net income $11,601 $6,504 $23,230 $14,244
Basic net income per share $0.33 $0.20 $0.67 $0.45
Dilutive net income
per share $0.31 $0.18 $0.61 $0.40
Weighted average shares
outstanding for basic EPS 35,002 32,594 34,730 31,760
Weighted average shares
outstanding for dilutive EPS 37,849 36,295 37,817 35,960
POLYCOM, INC.
Condensed Consolidated Balance Sheets
(in thousands)
June 30 Dec. 31,
2000 1999
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $55,197 $35,952
Short-term investments 8,294 24,815
Trade receivables, net 58,498 47,445
Inventories 26,218 18,136
Deferred taxes 13,318 9,059
Non-trade receivables 8,375 1,787
Prepaid expenses and other current assets 1,189 581
Total current assets 171,089 137,775
Fixed assets, net 14,087 9,795
Long-term investments 20,147 15,050
Other investments 5,000 --
Licenses 7,766 --
Noncurrent deferred taxes 1,546 1,546
Deposits and other assets 717 555
Total assets $220,352 $164,721
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $35,894 $26,433
Taxes payable 12,606 9,633
Other current liabilities 16,639 15,385
Total current liabilities 65,139 51,451
Stockholders' equity 155,213 113,270
Total liabilities and stockholders'
equity $220,352 $164,721
SOURCE: Polycom, Inc |
