Polycom Inc. PLCM recently posted its financial numbers in the first quarter of 2015. GAAP net income came in at $21.2 million or 15 cents per share compared with a loss of $4 million or 3 cents per share in the prior-year quarter. The company posted quarterly adjusted (including stock based comp. exp) earnings per share of 17 cents which beat the Zacks Consensus Estimate of 12 cents.
Polycom Inc. - Earnings Surprise | FindTheCompany
Quarterly total revenue increased 1% year over year to $330.7 million but was slightly below the Zacks Consensus Estimate $333 million. Product revenues were $233.7 million, up 1% year over year. Service revenues totaled $97 million, flat with the prior-year quarter’s figure.
UC Group Systems revenues totaled $204.6 million, down 4% year over year. UC Personal Devices revenues reached $67.5 million, up 19% from the year-ago quarter. UC Platform (Network Infrastructure) revenues came in at $58.6 million, nearly flat year over year.
Geographic Distribution of Sales
The Americas (North and South) generated approximately $157.4 million in revenues, down 4% year over year. Europe, the Middle East and Africa recorded $93.8 million, up 5% year over year. The Asia-Pacific region accounted for the remaining $79.5 million, up 4% year over year.
Margins
Gross margin (on a reported basis) in the reported quarter stood at 58.3% compared with 58.4% in the year-ago quarter. Quarterly operating expenses (on a reported basis) were $163.8 million, down 17.6% year over year. Quarterly operating income (on a reported basis) was $29 million compared with a loss of $6.9 million in the prior-year quarter.
Balance Sheet
At the end of the first quarter, Polycom had nearly $627.6 million of cash and short-term investments on its balance sheet compared with $628.9 million at the end of 2014. Total debt stood at $234.4 million in the quarter as against $235.9 million at the end of 2014. The debt-to-capitalization ratio was 0.18 at the end of first-quarter 2015 as compared with 0.19 at the end of 2014.
Cash Flow
Cash flow from operations, at the end of the first quarter of 2015, was $30.4 million against $19.1 million at the end of the prior-year quarter. Free cash flow in the reported quarter stood at $18.7 million compared with $8.2 million in the same quarter last year.
Stocks to Consider
Polycom currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the wireless equipment industry include Harris Corp. HRS, Aruba Networks, Inc. ARUN and QUALCOMM Inc. QCOM. All three carry a Zacks Rank #2 (Buy).
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