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Polycom Declares 3Q15 Results, Misses Estimates

Adam Rogers

Polycom and Hewlett-Packard Drove SKYY in the Trailing-1-Month Period

(Continued from Prior Part)

Revenues fall 9.7% YoY

On October 24, 2015, Polycom (PLCM) announced its 3Q15 results and reported revenues of $303.1 million, a 9.7% YoY (year-over-year) fall compared to revenues of $335.7 million in 3Q14. Gross profit fell 9% YoY from $196 million in 3Q14 to $178 million in 3Q15, whereas operating income increased 4.7% YoY from $19.0 million in 3Q14 to $19.9 million in 3Q15.

GAAP (generally accepted accounting principles) net income for Polycom fell 20.2% YoY from $17.0 million in 3Q14 to $13.6 million in 3Q15. GAAP earnings per share (or EPS) fell 16.7% as well, from $0.12 in 3Q14 to $0.10 in 3Q15.

Non-GAAP 3Q15 results

Polycom declared non-GAAP net income of $28.9 million compared to $30.7 million in 3Q14 and $29.9 million in 2Q15. Non-GAAP EPS fell 5% YoY from $0.22 in 3Q14 to $0.21 in 3Q15.

“In the third quarter of 2015, we delivered non-GAAP earnings-per-share consistent with our expectations and achieved year-over-year growth in operating margins,” said Peter Leav, Polycom’s president and chief executive officer. “Improving operational performance and making sound strategic investments remain top priorities for Polycom. Additionally, we are very excited about the game-changing products that we recently announced.”

Analyst estimates

Analysts estimated that Polycom would declare a net income of $20 million with EPS of $0.15 in 3Q15.

Peer companies such as F5 Networks (FFIV) and Cisco (CSCO) reported revenues of $501 million and $12.8 billion, respectively, in 3Q15.

Polycom constitutes 2.8% of the iShares North American Tech-Multimedia Networking ETF (IGN) and 0.10% of the iShares Russell 2000 ETF (IWM).

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