NEW YORK (AP) -- Shares of Polycom Inc. rose Tuesday after the maker of videoconferencing equipment reported a 50 percent increase in fourth-quarter net income, driven by growing demand in emerging markets and strong network infrastructure sales.
The company's shares rose $2.39, or 13 percent, to $20.81 in premarket trading. Shares are still down 15.5 percent over the past 52 weeks.
After the end of trading Monday, Polycom reported profit growth that topped analyst expectations. Revenue rose 20 percent.
Wedbush analyst Rohit Chopra said the strong international results showed that the company could make money even as its North American business is under challenge from Cisco Systems Inc. and smaller rivals.
But William Blair analyst Jason Ader, who rates the stock "Market Perform," said Polycom is dealing with several problems, including declining product gross margins and "continued disruptions" in its North American sales force. Gross margin is the amount of money a company keeps from every dollar of revenue after subtracting the cost of making its products.
There are no comments yet