Polycom 2Q earnings double on strong growth in emerging markets

Video conferencing specialist Polycom (NASDAQ:PLCM) Thursday reported record revenues for the second quarter and said earnings more than doubled from a year ago.

The company's second quarter 2011 consolidated net revenues were $366 million, a notable jump from the $295 million it earned in the second quarter of 2010. GAAP net income was $29 million, or 16 cents per diluted share, up from $13 million, or 7 cents per diluted share, for the same period last year. Non-GAAP net income for the second quarter of 2011 was $48 million, or 26 cents per diluted share, up from non-GAAP net income of $30 million, or 17 cents per diluted share a year ago. Analysts had expected revenue of $362.9 million and earnings of 25 cents a share.

Andrew Miller, Polycom president and CEO, said the quarter was a hallmark for the company, with the company continuing to capture market share from Cisco (NASDAQ: CSCO). In addition, Miller told the Wall Street Journal it had added five points in the video endpoint segment and three percent in network infrastructure growth.

"We made significant progress with our key partners through the Polycom Open Collaboration Network, experienced significant acceleration in the adoption of our UC Intelligent Core network infrastructure solutions, and again benefited from broad-based demand for our suite of solutions across all major geographies," he said.

During the quarter, Polycom contracted to acquire HP's Visual Collaboration business, a deal expected to close later this month. Polycom also reached a strategic agreement making the company an exclusive partner to HP for the company's array of telepresence and video solutions.

Polycom also expanded a strategic partnership with Microsoft (NASDAQ: MSFT) through the upcoming launch of the Polycom CX7000 unified collaboration system and announced the launch of the industry's first open video exchange cloud with AT&T (NYSE:T), BT Conferencing (NYSE:BT), Telefonica (NYSE: TEF), Verizon (NYSE: VZ), and other global service providers.

Miller also said the company continued to expand in emerging markets like China, India, Russia, and Brazil.

In fact, just over half of Polycom's revenues ($189.2 million, or 52 percent) came from the Americas; the Asia Pacific region accounted for 24 percent, about $87.1 million, and Europe, the Middle east and Africa made up the balance.

For more:
- see the Associated Press article
- see this WSJ article
- see this release
- see this Seeking Alpha transcript of the earnings call

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