• Polycom Reports First Quarter 2008 Earnings

    04-16-2008

    Revenue Growth of 34 Percent Year-over-Year; Revenue Growth of 15 Percent Year-over-Year Excluding SpectraLink

    PLEASANTON, Calif. – April 16, 2008 – Polycom, Inc. (NASDAQ: PLCM), the world's leading provider of unified collaborative communications solutions, today reported its earnings for the first quarter ended March 31, 2008.

    First quarter 2008 consolidated net revenues were $258.9 million, compared to $192.7 million for the first quarter of 2007. SpectraLink contributed $39.4 million to net revenues for the first quarter of 2008 compared to $2.1 million in the first quarter of 2007 for the six-day period following the acquisition, which was completed on March 26, 2007. Non-GAAP net income for the first quarter of 2008 was $32.7 million, or 36 cents per diluted share. This compares to Non-GAAP net income of $28.6 million, or 30 cents per diluted share, for the first quarter of 2007. GAAP net income for the first quarter of 2008 was $14.2 million, or 16 cents per diluted share, compared to $10.2 million, or 11 cents per diluted share, for the same period last year.

    The reconciliation between GAAP net income and Non-GAAP net income is provided in the tables at the end of this release.

    On a product line basis, consolidated net revenues for the first quarter of 2008 were comprised of:

    • 62 percent video solutions, or $159.5 million (51 percent video communications, or $130.3 million, and 11 percent network systems, or $29.2 million); and
    • 38 percent voice communications, or $99.4 million.

    This compares to the first quarter of 2007, in which consolidated net revenues were comprised of:

    • 71 percent video solutions, or $136.6 million (56 percent video communications, or $108.0 million, and 15 percent network systems, or $28.6 million); and
    • 29 percent voice communications, or $56.1 million.

    "Unified Collaboration continues to be a key priority for our customers worldwide," said Robert Hagerty, chairman and CEO. "We believe the fast return on investment of our solution, compliance with the green initiatives in Europe and other important markets, and globalization of the workforce, are driving adoption within enterprise and public sector customers alike. In addition, we are pleased to report that first quarter revenues for our SpectraLink wireless products grew sharply from the fourth quarter, validating both the customer demand for voice mobility solutions and the successful completion of the integration of this strategically important acquisition."

    "Looking forward, we expect growing contributions from our strategic partnerships such as Microsoft, Nortel, Avaya, IBM, and others as we deliver our highly differentiated video and v