January 20, 2011 / 9:15 PM / 8 years ago

UPDATE 2-Polycom Q4 beats on network systems demand; shares rise

* Q4 adj EPS $0.49 vs est $0.43

* Q4 rev up 27 pct to $340 mln vs est $327.7 mln

* Shares up 8 pct post mkt (Adds details, analyst comment, share movement)

Jan 20 (Reuters) - Polycom Inc PLCM.O posted quarterly profit ahead of expectations, boosted by strong demand for its high-margin network systems that form the backbone of its video conferencing products, sending shares up 8 percent in extended trading.

Fourth-quarter net income for the company, which competes mainly with Cisco Systems’ (CSCO.O) unit Tandberg, soared two and a half times to $33 million, or 37 cents a share.

Excluding items, it earned 49 cents a share, beating estimates for the fourth straight quarter, according to Thomson Reuters I/B/E/S.

“These were very solid results. Most importantly, the network systems revenue was up — that is very strategic to future sales,” said Gleacher & Co analyst Stephen Patel.

Total revenue rose 27 percent to $340 million, with network systems revenue, a part of the company’s video business, growing 25 percent. [ID:nASA01ERW]

Analysts on average were expecting adjusted profit of 43 cents a shares and revenue of $327.7 million, according to Thomson Reuters I/B/E/S.

Shares of the Pleasanton, California-based company were up more than 8 percent at $41.30 in trading after the bell. They closed down 6 percent at $38.18 on Thursday on Nasdaq.

The stock has risen 30 percent since Oct. 21, when Polycom reported market-topping third-quarter results.

Reporting by Sayantani Ghosh in Bangalore;Editing by Prem Udayabhanu

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