Polycom sees profit double in 2011
Fourth quarter and full year results up on geographic expansion and telepresence sales
Polycom grew income and revenues for both the quarter ended 31st December and for fiscal year 2011, according to its financial results.
The collaboration systems specialist saw net revenue for Q4 2011 rise 38.2%, to $407 million, compared to $340 million for the same quarter in 2010. GAAP net income was up to $50 million from $33 million in Q410, a 52% rise, with earnings per share (EPS) of 28 cents.
For the full financial year, net revenue was up 25% from $1.2 billion to $1.5 billion, with GAAP net income doubled to $136 million, with EPS of 75 cents per diluted share.
The company attributed the growth to increased presence in wider geographic markets, and strong sales of its telepresence solution RealPresence. Polycom saw 28% growth in revenues from the Europe, Middle East and Africa region, to $109.7 million, or 27% of net revenues. Overall, net revenue from emerging geographies was up over 40% year-over-year.
Revenue from the immerssive telepresence solution RealPresence grew 45% year-on-year.
"2011 closed strong with full-year revenues of $1.5 billion, driven by particular strength in sales of the Polycom RealPresence Platform and broad geographic growth," said Andrew Miller, Polycom president and CEO. "Enabled by Polycom's innovations, we experienced unprecedented demand for our secure, interoperable, unified collaboration solutions by both enterprise and service provider customers. Leveraging our industry-leading technology and powerful network of strategic partners, Polycom's cloud, mobility, and software-driven infrastructure strategy is beginning to yield and we look forward to another year of solid growth in 2012."
"Polycom generated 20% year-over-year revenue growth in Q4, which drove revenues, operating profits, and operating cash flow to record levels," said Michael Kourey, Polycom's executive vice president, finance and administration, and CFO. "We are pleased to have achieved significant operating margin expansion and unprecedented operating cash flow of $122 million in the fourth quarter. Net of the strategic acquisitions and stock repurchases in the period, Polycom exited 2011 with $592 million in cash and investments and no debt."