Polycom announced their quarterly earnings today and the results were a mixed bag.
The Pleasanton, CA-based maker of voice and video equipment announced adjusted Q4 EPS of 42 cents, which was ahead of analysts' estimates of 40 cents.
The company also announced growth from its video services segment which accounted for two-thirds of consolidated net revenues at $141.7 million (this includes video communications - 54% and networks systems - 13%). The voice communications segment of the company's business accounted for 33% or $87.1 million, which is down as compared to Q407 when voice generated 37% of consolidated net revenues or $98.4 million.
Robert Hagerty, the firm's chairman and CEO addressed Polycom's successes in 2008 as well as the challenging economic climate and his outlook for the company into 2009:
We are pleased to have surpassed the $1 billion revenue mark in 2008. As the largest company in the Unified Collaboration industry, Polycom generated year-over-year growth in our Video Solutions business, illustrating the resilience of our fast-ROI video offering. With our Voice business showing more sensitivity to the economic environment, Polycom proactively took action in Q4 to reduce our operating cost structure and, as we announced earlier this month, we have implemented a restructuring plan designed to optimize our cost structure as we move into 2009
With our rapid pace of innovation and the full breadth of our offering, we believe Polycom is the best positioned in the industry to deliver the cost-savings benefits of video adoption to our customers. Our strategic partnerships with Avaya, Cisco, IBM, Microsoft, and others enable us to provide integrated solutions that capture the full benefits of Unified Collaboration. These partnerships differentiate Polycom as the solutions provider of choice for companies who describe our collaboration solution as a strategic technology investment. In spite of the challenging economy, through our leading solutions and go-to-market strategy and, of course, our improved cost structure, we expect to continue to gain strength competitively in 2009 and to deliver solid operating results.
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