Posts net income of $5.4m compared to $8m in the same period last year
Video conferencing firm Polycom has reported net revenues of $276m for the first quarter of 2010, an increase of 23% compared to $225m for the same period last year.
For the quarter ended March 31, 2010, the company posted a gross profit of $159m, compared to $126.9m in the same period last year. Operating income rose to $15.3m from $10.8m.
The company posted a net income of $5.4m, or $0.06 per diluted share, compared to $8m, or $0.10 per diluted share, for the same period last year.
On the product line basis, the company’s fourth quarter net revenues were comprised of 69% video solutions or $189m. The video solutions comprised 53% from video communications, or $146m and 17% from network systems or $43m. Voice communications net revenues were $87m, accounting for 31% of total net revenues.
Robert Hagerty, chairman and CEO of Polycom, said: “Product innovation also continued at a fast pace in the first quarter of 2010. With our new H.264 High Profile software, we have cut the bandwidth requirements for 1080p HD video approximately in half, dramatically improving TCO for our customers and further enhancing the already robust return on investment of our solutions.
“Finally, we gained US government UC APL certification for our RMX network platform and we launched our CMA Desktop video solution for the Apple Mac. Bottom line, we have an extraordinary team, our execution against the strategic investment plan is on-target, and we believe we are positioned well to seize the tremendous market opportunity in the unified collaboration space over time”