Q1 Revenue Growth of 25 Percent Year-over-Year to a Record $344 Million; Record Q1 Operating Cash Flow of $46 Million
PLEASANTON, Calif. - Apr 21, 2011 : Polycom, Inc. (Nasdaq: PLCM), a global leader in unified communications (UC), today reported its earnings for the first quarter ended March 31, 2011.
First quarter 2011 consolidated net revenues were a record $344 million, compared to $276 million for the first quarter of 2010. GAAP net income for the first quarter of 2011 was $34 million, or 38 cents per diluted share, compared to $5 million, or 6 cents per diluted share, for the same period last year. Non-GAAP net income for the first quarter of 2011 was $43 million, or 48 cents per diluted share, compared to non-GAAP net income of $25 million, or 29 cents per diluted share, for the first quarter of 2010.
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 first quarter of 2011 were comprised of:
- 51 percent Americas, or $176 million;
- 25 percent Europe, Middle East, and Africa, or $86 million; and
- 24 percent Asia Pacific, or $82 million.
On a geographic basis, consolidated net revenues for the first quarter of 2010 were comprised of:
- 54 percent Americas, or $150 million;
- 25 percent Europe, Middle East, and Africa, or $67 million; and
- 21 percent Asia Pacific, or $59 million.
"Record results for the first quarter were driven by broad-based customer demand for Polycom's leading UC solutions across all major geographies," said Andrew Miller, Polycom president and CEO. "We are particularly pleased with the traction Polycom's UC strategy is gaining within our partner and customer communities, as well as the outstanding results we continue to achieve in emerging markets such as China and India."
"Importantly, our 2011 strategic imperatives are already beginning to yield results as evidenced by new strategic partnerships and the delivery of new solutions. For instance, through our recently acquired Accordent video content management solution, we announced our new cloud-based media service hosted on Microsoft's Windows Azure platform. IBM awarded Polycom the IBM Lotus Award for our innovative Polycom UC for Lotus Sametime solution, and we announced our new strategic partnership with Ericsson to capture business and consumer demand for mass-market visual communication. In addition, we extended our mobile presence to the Motorola XOOM platform, signifying another step toward Polycom's UC presence on all major mobility platforms and validating our open architecture strategy by providing support for Telepresence Interoperability Protocol (TIP) through Polycom's UC Intelligent Core™ platform."
"In summary, we believe the UC industry is at an inflection point and we are uniquely positioned to benefit directly from the fundamental shift in the way people communicate. The rapid adoption of video, the pervasive use of mobile devices, and the emerging use of the cloud to deliver UC solutions are driving our strategy as principal catalysts for our business. As the only independent provider of scale, we believe Polycom is in an excellent position to capture this momentum and deliver strong revenue growth and expanding operating margins in the future," concluded Miller.
"Driven by record revenues, strong gross margins, and operating cost management, Polycom's operating income grew both sequentially and year-over-year in the first quarter," said Michael Kourey, Polycom executive vice president, finance and administration, and CFO. "This is especially noteworthy given typical first quarter seasonality, as these results illustrate the demand for Polycom's UC solution and the margin growth opportunity for our business. As a result of our strong operating results and effective working capital management, we generated positive operating cash flow of $46 million—a record for a Q1, and we exited the first quarter with $539 million in cash and investments and no debt.
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