Polycom Inc. (PLCM, Financial) filed Quarterly Report for the period ended 2009-09-30.
Polycom Inc. develops manufactures and markets a full range ofhigh-quality media-rich communication tools and network solutions. The company's broadband communication solutions enable business users to immediately realize the benefits of video voice and data over rapidly growing converged networks. The company is the leading videoconferencing and voice conferencing product provider and have recently entered the DSL access market particularly in the area of integrated voice appliances and broadband access devices. Polycom Inc. has a market cap of $1.82 billion; its shares were traded at around $21.67 with a P/E ratio of 24.3 and P/S ratio of 1.7. Polycom Inc. had an annual average earning growth of 19.1% over the past 5 years.
Video Solutions segment revenues include revenues from sales of our video communications and infrastructure product lines. Revenue from video communications products decreased to $104.7 million for the three months ended September 30, 2009 from $123.9 million in the year ago period, a 15% decrease. Revenue from video communications products decreased to $311.3 million for the nine months ended September 30, 2009 from $360.9 million in the year ago period, a 14% decrease. The revenue decreases in the three and nine month periods were primarily due to a decrease in sales volumes of our VSX® product family, and to a lesser extent lower sales volumes of our RPX immersive telepresence products, partially offset by increases in sales volumes of our HDX® product family and new products, such as our Polycom® CX5000 and QDX 6000 video solutions. Revenues from our infrastructure products for the three months ended September 30, 2009 were $23.2 million, up 5% from revenues of $22.1 million in the comparable 2008 period. Revenues from our infrastructure products for the nine months ended September 30, 2009 were $65.3 million, up 16% from revenues of $56.1 million in the comparable 2008 period. The revenue increases in both periods are primarily due to increases in our video infrastructure and software revenues, which were driven primarily by the introduction of new products and enhancements to existing products.
Voice Communications Solutions product revenues decreased in the three and nine month periods as compared to the comparable year ago periods primarily due to lower sales volumes of voice communications products, including our circuit-switched, wireless, Voice-over-IP and installed voice product lines. Revenues from our Voice Communications Solutions have declined year-over-year since the fourth quarter of 2008. We believe these declines are primarily a result of the global economic climate and that this business will improve as the economy improves. In the third quarter of 2009 we experienced sequential growth for the first time since the second quarter of 2008, with Voice Communication revenues growing 15% over the second quarter of 2009. In the second quarter of 2009, Voice Communication revenues were flat sequentially to the first quarter of 2009, as compared to the sequential declines we experienced in the first quarter of 2009, fourth quarter of 2008, and the third quarter of 2008 of 22%, 12%, and 5%, respectively.
International sales, or revenues outside of the U.S. and Canada, accounted for 47% of total revenues for both the three and nine month periods ended September 30, 2009 and 46% of total revenues in both the three and nine month periods ended September 30, 2008. On a regional basis, North America, Europe, Asia Pacific and Latin America accounted for 53%, 23%, 21% and 3%, respectively, of our total revenues for the three months ended September 30, 2009 and 53%, 24%, 20% and 3%, respectively, of our total revenues for the nine months ended September 30, 2009. North America, Europe and Latin America revenues decreased 14%, 17% and 23%, respectively, in the three months ended September 30, 2009 over the comparable 2008 period, while Asia Pacific revenues grew 4%. North America, Europe, Asia Pacific and Latin America revenues decreased 14%, 18%, 3% and 22%, respectively, in the nine months ended September 30, 2009 over the comparable 2008 period. The decrease in revenues is primarily a result of the global economic climate. We have a hedging program that uses forward-exchange contracts to hedge against foreign currency fluctuations for a portion of anticipated revenues denominated in the Euro and British Pound. During the three and nine months ended September 30, 2009, our European revenues included a $0.2 million decrement and a $10.6 million benefit related to
During the three months ended September 30, 2009, one channel partner accounted for 13% of our total net revenues, 14% of our Video Solutions segment revenues and 17% of our Voice Communications Solutions revenue. During the nine months ended September 30, 2009, one channel partner accounted for 11% of our total net revenues, 12% of our Video Solutions segment revenues and 14% of our Voice Communications Solutions revenue. No one customer accounted for more than 10% of our Services segment revenues during the three or nine months ended September 30, 2009. During the three and nine months ended September 30, 2008, no one customer accounted for more than 10% of our total net revenues or of our Voice Communications Solutions or Services segment revenues. One channel partner accounted for 11% of our Video Solutions segment revenues during both the three and nine months ended September 30, 2008. We believe it is unlikely that the loss of any of our channel partners would have a long term material adverse effect on our consolidated net revenues or segment net revenues as we believe end-users would likely purchase our products from a different channel partner. However, a loss of any one of these channel partners could have a material adverse impact during the transition period.
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Polycom Inc. develops manufactures and markets a full range ofhigh-quality media-rich communication tools and network solutions. The company's broadband communication solutions enable business users to immediately realize the benefits of video voice and data over rapidly growing converged networks. The company is the leading videoconferencing and voice conferencing product provider and have recently entered the DSL access market particularly in the area of integrated voice appliances and broadband access devices. Polycom Inc. has a market cap of $1.82 billion; its shares were traded at around $21.67 with a P/E ratio of 24.3 and P/S ratio of 1.7. Polycom Inc. had an annual average earning growth of 19.1% over the past 5 years.
Highlight of Business Operations:
Our Video Solutions, Voice Communications Solutions and Services segments accounted for 53%, 29% and 18%, respectively, and 54%, 28% and 18%, respectively, of our revenues during the three and nine months ended September 30, 2009, compared with 53%, 32% and 15%, respectively, and 52%, 34% and 14%, respectively, of our revenues in the three and nine months ended September 30, 2008. See Note 12 of Notes to Condensed Consolidated Financial Statements for further information on our segments, including a summary of our segment revenues, segment contribution margin and segment inventory.Video Solutions segment revenues include revenues from sales of our video communications and infrastructure product lines. Revenue from video communications products decreased to $104.7 million for the three months ended September 30, 2009 from $123.9 million in the year ago period, a 15% decrease. Revenue from video communications products decreased to $311.3 million for the nine months ended September 30, 2009 from $360.9 million in the year ago period, a 14% decrease. The revenue decreases in the three and nine month periods were primarily due to a decrease in sales volumes of our VSX® product family, and to a lesser extent lower sales volumes of our RPX immersive telepresence products, partially offset by increases in sales volumes of our HDX® product family and new products, such as our Polycom® CX5000 and QDX 6000 video solutions. Revenues from our infrastructure products for the three months ended September 30, 2009 were $23.2 million, up 5% from revenues of $22.1 million in the comparable 2008 period. Revenues from our infrastructure products for the nine months ended September 30, 2009 were $65.3 million, up 16% from revenues of $56.1 million in the comparable 2008 period. The revenue increases in both periods are primarily due to increases in our video infrastructure and software revenues, which were driven primarily by the introduction of new products and enhancements to existing products.
Voice Communications Solutions product revenues decreased in the three and nine month periods as compared to the comparable year ago periods primarily due to lower sales volumes of voice communications products, including our circuit-switched, wireless, Voice-over-IP and installed voice product lines. Revenues from our Voice Communications Solutions have declined year-over-year since the fourth quarter of 2008. We believe these declines are primarily a result of the global economic climate and that this business will improve as the economy improves. In the third quarter of 2009 we experienced sequential growth for the first time since the second quarter of 2008, with Voice Communication revenues growing 15% over the second quarter of 2009. In the second quarter of 2009, Voice Communication revenues were flat sequentially to the first quarter of 2009, as compared to the sequential declines we experienced in the first quarter of 2009, fourth quarter of 2008, and the third quarter of 2008 of 22%, 12%, and 5%, respectively.
International sales, or revenues outside of the U.S. and Canada, accounted for 47% of total revenues for both the three and nine month periods ended September 30, 2009 and 46% of total revenues in both the three and nine month periods ended September 30, 2008. On a regional basis, North America, Europe, Asia Pacific and Latin America accounted for 53%, 23%, 21% and 3%, respectively, of our total revenues for the three months ended September 30, 2009 and 53%, 24%, 20% and 3%, respectively, of our total revenues for the nine months ended September 30, 2009. North America, Europe and Latin America revenues decreased 14%, 17% and 23%, respectively, in the three months ended September 30, 2009 over the comparable 2008 period, while Asia Pacific revenues grew 4%. North America, Europe, Asia Pacific and Latin America revenues decreased 14%, 18%, 3% and 22%, respectively, in the nine months ended September 30, 2009 over the comparable 2008 period. The decrease in revenues is primarily a result of the global economic climate. We have a hedging program that uses forward-exchange contracts to hedge against foreign currency fluctuations for a portion of anticipated revenues denominated in the Euro and British Pound. During the three and nine months ended September 30, 2009, our European revenues included a $0.2 million decrement and a $10.6 million benefit related to
During the three months ended September 30, 2009, one channel partner accounted for 13% of our total net revenues, 14% of our Video Solutions segment revenues and 17% of our Voice Communications Solutions revenue. During the nine months ended September 30, 2009, one channel partner accounted for 11% of our total net revenues, 12% of our Video Solutions segment revenues and 14% of our Voice Communications Solutions revenue. No one customer accounted for more than 10% of our Services segment revenues during the three or nine months ended September 30, 2009. During the three and nine months ended September 30, 2008, no one customer accounted for more than 10% of our total net revenues or of our Voice Communications Solutions or Services segment revenues. One channel partner accounted for 11% of our Video Solutions segment revenues during both the three and nine months ended September 30, 2008. We believe it is unlikely that the loss of any of our channel partners would have a long term material adverse effect on our consolidated net revenues or segment net revenues as we believe end-users would likely purchase our products from a different channel partner. However, a loss of any one of these channel partners could have a material adverse impact during the transition period.
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