January 24, 2014 / 1:16 AM / 4 years ago

Polycom results beat Street, job cuts planned

(Reuters) - Polycom Inc PLCM.O reported better-than-expected quarterly results due to higher sales of its handsets and 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 video-conferencing, teleconferencing and content-sharing hardware and software.

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


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 December 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.

(Reporting By Sampad Patnaik; Editing by Robin Paxton)

In Jan. 22 story, corrects paragraph 1 to add handsets and paragraph 3 to say company makes video-conferencing, teleconferencing and content-sharing hardware and software

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