Q4 Revenue Growth of 27 Percent Year-over-Year to a Record $340 Million; 2010 Revenue Growth of 26 Percent to a Record $1.2 Billion
PLEASANTON, Calif. - Jan, 2011 : Polycom, Inc. (Nasdaq: PLCM), a global leader in unified communications (UC), today reported its earnings for the fourth quarter ended Dec. 31, 2010.
Fourth quarter 2010 consolidated net revenues were a record $340 million, compared to $268 million for the fourth quarter of 2009. GAAP net income for the fourth quarter of 2010 was $33 million, or 37 cents per diluted share, compared to $13 million, or 15 cents per diluted share, for the same period last year. Non-GAAP net income for the fourth quarter of 2010 was $43 million, or 49 cents per diluted share, compared to Non-GAAP net income of $28 million, or 33 cents per diluted share, for the fourth quarter of 2009.
For the year ended Dec. 31, 2010, net revenues were $1.2 billion, compared to $967 million for the year ended Dec. 31, 2009. GAAP net income for the year ended Dec. 31, 2010 was $68 million, or 78 cents per diluted share, compared to GAAP net income of $50 million, or 58 cents per diluted share, for the same period last year. Non-GAAP net income for the year ended Dec. 31, 2010 was $133 million, or $1.50 per diluted share, compared to $102 million, or $1.19 per diluted share, for the same period last year.
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 fourth quarter of 2010 were comprised of:
- 53 percent Americas, or $181 million;
- 25 percent Europe, Middle East and Africa, or $86 million; and
- 22 percent Asia Pacific, or $73 million.
On a geographic basis, consolidated net revenues for the fourth quarter of 2009 were comprised of:
- 53 percent Americas, or $143 million;
- 26 percent Europe, Middle East and Africa, or $70 million; and
- 21 percent Asia Pacific, or $55 million.
"The fourth quarter capped a transformative year for Polycom in which we successfully launched and executed an ambitious plan to seize the opportunities in UC and establish our presence as market leader and ecosystem partner of choice," said Andrew Miller, Polycom president and CEO. "These efforts yielded impressive results for 2010, including accelerating revenue growth, market gains, breakthrough innovations, new strategic partnerships and expanding margins. Importantly, our momentum continued in the fourth quarter, driven by back-to-back gains in network infrastructure sales and broad-based revenue growth in each of our geographic theatres and major product lines."
"As we turn to 2011, we believe Polycom is best positioned to deliver an intuitive UC experience at work, in the home, or while mobile. Through our Polycom Open Collaboration Network, we will continue to develop integrated UC solutions with leading platforms including Microsoft Lync, IBM Lotus Sametime, and HP Network Solutions. With the recent introduction of Polycom's Open Exchange Consortium and our partnerships with AT&T, Verizon, BT, China Unicom and many other leading service providers, we will deliver a cloud-based solution, for not just enterprise and government, but also penetrate the significant opportunity in the small-to-medium business and connected home arena as well. Finally, expect to see Polycom's UC solution present on many of the key mobile platforms as evidenced by our initial alliance with Samsung on its Galaxy Tab Android-based device."
"In summary, 2011 promises to be a year of significant revenue growth, expanding operating margins, and Polycom's delivery of what we refer to as UC Everywhere. With our customers demanding Polycom's UC solution at unprecedented levels, coupled with our strong and growing brand and channel, we believe we are best positioned to be the go-to provider of UC solutions. Looking forward, we plan to continue to deliver innovations that transform the way that individuals and organizations communicate and collaborate both professionally and socially," concluded Miller.
"We are pleased with another consecutive quarter of sharp revenue growth," said Michael Kourey, Polycom executive vice president, finance and administration, and CFO. "Driven by network infrastructure growth of 20 percent sequentially and 25 percent year-over-year and record demand for Polycom's entire solution, both gross and operating margins again expanded year-over-year. As a result of these strong operating results and effective working capital management, we generated fourth quarter positive operating cash flow of $42 million, exiting the fourth quarter with $536 million in cash and investments and no debt."