Polycom exploits video demand to deliver Q1 earnings spike


Polycom exploits video demand to deliver Q1 earnings spike

Alex Scroxton

Unified comms vendor Polycom has again capitalised on demand for video and telepresence solutions after posting record sales and profits for the first quarter of its fiscal 2011.

For the three months to the end of March, Polycom grew sales 25% year-on-year to $344m (£209m), while GAAP net profit soared from $5m this time last year to $34m.

Michael Kourey, Polucom CFO, said the results were "especially noteworthy given first quarter seasonality".

"These results illustrate the demand for Polycom's UC solution and the margin growth opportunity for our business," he said.

President and CEO Andrew Miller said the vendor's strategy was gaining traction within its partner community, adding that the firm's 2011 strategic imperatvies were "beginning to yield results as evidenced by new strategic partnerships and the delivery of new solutions".

"We believe the UC industry is at an inflection point and we are uniquely positioned to benefit directly from the fundamental shift in the way people communicate.

"The rapid adoption of video, the pervasive use of mobile devices and the emerging use of the cloud to deliver UC solutions are driving our strategy as principal catalysts for our business," he said.

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