Polycom 4Q profit rises 50 percent

0
25

PLEASANTON, Calif. (AP) ? Videoconferencing equipment maker Polycom Inc. said Monday its profit climbed 50 percent in the fourth quarter. Its adjusted net income was well ahead of Wall Street forecasts and its shares jumped in aftermarket trading.

Polycom said its income grew to $49.6 million, or 28 cents per share, from $33.1 million, or 19 cents per share, one year ago. Its revenue rose 20 percent, to $407 million from $339.6 million.

Its adjusted earnings amounted to 41 cents a share. On that basis, analysts expected Polycom to report a profit of 29 cents per share on revenue of $402.1 million, according to FactSet.

The company’s shares advanced $1.93, or 10.5 percent, to $20.35 in aftermarket trading.

Polycom reported greater revenue from its RealPresence platform and greater sales in emerging markets. It said its product revenue grew 13 percent to $318.4 million, and service revenue increased 55 percent to $88.6 million.

Polycom’s year-ago results are adjusted to reflect a two-for-one stock split on July 1.

In full-year 2011, Polycom’s profit nearly doubled to $135.8 million, or 75 cents per share, from $68.4 million, or 39 cents per share. Revenue grew 23 percent to $1.5 billion from $1.22 billion.

Shares of Polycom rose $2.74, or nearly 15 percent, to $21.16 in aftermarket trading following the earnings report. They had ended the regular session up 3.8 percent to $18.42.