UPDATE 1-Polycom sees Q4 earnings above estimates, cuts jobs
(Recasts, adds details, share movement)
Jan 6 (Reuters) - Video-conferencing products maker Polycom Inc (PLCM.O) forecast fourth quarter earnings above market estimates and said it laid off 6 percent of it workforce to reduce costs, and its shares rose 8 percent.
The company said the 150 job cuts were with immediate effect and that it would take a related charge of about $6.5 million in the first quarter of 2009. Polycom however cut its revenue view due to a continued weakness in its voice communications business. It now expects revenue to fall to $263 million to $265 million in the fourth-quarter ended December 31.
The company had earlier expected revenue to be sequentially flat.
Polycom said it expects fourth-quarter earnings of 29 cents to 31 cents a share. Excluding items, it expects to earn 39 cents to 41 cents a share.
Analysts on average expect earnings of 35 cents a share, before special items, on revenue of $271.5 million, according to Reuters Estimates.
Polycom and Norway's Tandberg (TAA.OL) dominate the video conference systems industry in a virtual duopoly, with the two companies controlling 80 percent to 90 percent of the market.
Shares of the company, whose customers include Dell (DELL.O), Pfizer (PFE.N) and American Express (AXP.N), were up 8 percent at $14.97 in trading after the bell. They closed at $13.87 Tuesday on Nasdaq. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Savio D'Souza ) ((purwa.naveen@reuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: purwa.naveen.reuters.com@reuters.net))
