Polycom results beat Street, job cuts planned

Wed Jan 22, 2014 6:59pm EST

* 4th-qtr adj profit/shr $0.16 vs est $0.15

* 4th-qtr revenue $348 mln vs est $341.7 mln

* Company says to cut 6 percent of workforce

* Shares up 5 percent in extended trading

Jan 22 (Reuters) - Polycom Inc reported better-than-expected quarterly results due to higher sales of its desktop video-conferencing devices, and said it would cut 6 percent of its workforce.

Polycom's shares rose 5 percent after the bell.

The San Jose, California-based company makes devices and software that help people to access messages sent on one medium, such as voicemail, through another medium, such as e-mail or a cellphone.

Polycom said revenue from personal devices, one of its three business units, rose 33 percent in the fourth quarter ended Dec. 31.

Overall revenue fell more than 1 percent to $348 million, hurt by a decline in sales in its larger group systems business, which accounted for nearly two-thirds of total revenue in the quarter.

This was higher, however, than the average analysts' estimate of $341.7 million, according to Thomson Reuters I/B/E/S.

Revenue from the Asia-Pacific region rose 4 percent in the quarter, while sales in the Americas and the Europe, Middle East and Africa region declined.

Polycom's fourth-quarter loss of $2.0 million, or 1 cent per share, compared with a profit of $1.9 million, or 1 cent per share, a year earlier.

But the company earned an adjusted profit of 16 cents per share, beating the average analysts' estimate of 15 cents per share.

Polycom said in a separate filing that most of its planned job cuts would take effect in the current quarter. As of Dec. 31, 2012, Polycom had 3,747 employees.

The company's Nasdaq-traded shares were up about 5 percent at $12.35 in extended trading on Wednesday.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.