SOURCE: Polycom

Polycom

October 21, 2010 16:05 ET

Polycom Reports Third Quarter 2010 Earnings

Q3 Revenue Growth of 27 Percent Year-Over-Year to a Record $308 Million

PLEASANTON, CA--(Marketwire - October 21, 2010) - Polycom, Inc. (NASDAQ: PLCM), a global leader in unified communications solutions, today reported its earnings for the third quarter ended Sept. 30, 2010.

Third quarter 2010 consolidated net revenues were a record $308 million, compared to $243 million for the third quarter of 2009. GAAP net income for the third quarter of 2010 was $17 million, or 20 cents per diluted share, compared to $14 million, or 16 cents per diluted share, for the same period last year. Non-GAAP net income for the third quarter of 2010 was $34 million, or 38 cents per diluted share. This compares to Non-GAAP net income of $27 million, or 31 cents per diluted share, for the third quarter of 2009.

For the nine months ended Sept. 30, 2010, net revenues were $879 million, compared to $699 million for the first nine months of 2009. GAAP net income for the nine months ended Sept. 30, 2010 was $35 million, or 40 cents per diluted share, compared to GAAP net income of $37 million, or 44 cents per diluted share, for the same period last year. Non-GAAP net income for the period was $89 million, or $1.02 per diluted share, compared to $74 million, or 86 cents per diluted share, for the first nine months of 2009.

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 third quarter of 2010 were comprised of:

--  67 percent video solutions, or $206 million (52 percent video
    communications, or $160 million, and 15 percent network systems, or
    $46 million); and
--  33 percent voice communications, or $102 million.

On a product line basis, consolidated net revenues for the third quarter of 2009 were comprised of:

--  68 percent video solutions, or $165 million (53 percent video
    communications, or $130 million, and 15 percent network systems, or
    $35 million); and
--  32 percent voice communications, or $78 million.

"Q3 represented a hallmark quarter for Polycom across the business, validating the speed and precision with which we have executed our go-to-market strategy and underscoring our unique role as the UC ecosystem partner of choice," said Andrew Miller, Polycom president and CEO. "Importantly, we generated sharp growth in network systems revenues, driven by the launch of the Polycom UC Intelligent Core, leveraging our best-in-class infrastructure technology and our highly-effective sales engine. These customer wins at the core not only contributed to Polycom's record revenues but, more importantly, bodes well for the proliferation of our collaboration solution into our growing customer base. We also achieved significant gains with the Polycom Open Collaboration Network, which was punctuated by our new strategic relationship with Microsoft where we are jointly developing and marketing a unified communications solution that leverages the demand for the next-generation Microsoft Lync UC server."

"Looking to Q4 and 2011, we believe Polycom is in a unique position to capture the emerging network effect of UC adoption by enterprise, public sector, service providers, SMB, and, ultimately, the connected home. In order to most effectively deliver on this mounting demand, we recruited a slate of world-class executives from industry leading companies to execute on the strategy that we set forth one year ago today. Through our unparalleled innovations, strategic partnerships, and customer-centric go-to-market capabilities, we have been taking share and, more importantly, leading this industry to unprecedented levels of customer adoption. The strategic investment plan is working, our margins are expanding, and we are now staged to take this business to the next level," concluded Miller.

"In the third quarter, revenues grew 27 percent year-over-year, underpinned by record bookings that generated record backlog exiting Q3," said Michael Kourey, Polycom executive vice president, finance and administration, and CFO. "Driven by network systems growth of 15 percent sequentially and 31 percent year-over-year and the robust demand environment for Polycom's entire solution, gross margins increased more than one point sequentially and over two points year-over-year. As a result of these strong operating results and effective working capital management, we generated third quarter positive operating cash flow of $41 million, exiting the third quarter with $500 million in cash and investments and no debt."

About Polycom

Polycom, Inc. (NASDAQ: PLCM) is a global leader in unified communications solutions with industry-leading telepresence, video, voice and infrastructure solutions built on open standards. Polycom powers smarter conversations, transforming lives and businesses worldwide. Please visit www.polycom.com for more information or connect with Polycom on Twitter, Facebook, and LinkedIn.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 regarding future events, future demand for our products, and the future performance of the Company, including statements regarding the future proliferation of our collaboration solution into a growing customer base and Polycom as being uniquely positioned to capture the emerging network effect of UC adoption and as leading the industry to unprecedented levels of customer adoption. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the fact that the Company's continuing strategic investment plan may not yield the intended results or may take longer than originally anticipated to achieve such results, the impact of competition on our product sales and for our customers and partners, the impact of increased competition due to consolidation in our industry or competition from companies that are larger or that have greater resources than we do, potential fluctuations in results and future growth rates, risks associated with general economic conditions and external market factors, the market acceptance of Polycom's products and changing market demands, including demands for differing technologies or product and services offerings, possible delays in the development, availability and shipment of new products, increasing costs and differing uses of capital, changes in key personnel that may cause disruption to the business, any disruptive impact to the Company that may result from the new executive hires, the impact of restructuring actions, and the impact of global conflicts such as those in the Middle East that may adversely impact our business. Many of these risks and uncertainties are discussed in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, and in other reports filed by Polycom with the SEC. Polycom disclaims any intent or obligations to update these forward-looking statements.

To supplement our consolidated financial statements presented on a GAAP basis, Polycom uses non-GAAP measures of operating results, net income and income per share, which are adjusted to exclude certain costs, expenses, gains and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Polycom's underlying operational results and trends and our marketplace performance. For example, the non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside of our core operating results. In addition, these adjusted non-GAAP results are among the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or diluted net income per share prepared in accordance with generally accepted accounting principles in the United States.

Earnings Call Details

As has been noted on the Company's web site since Oct. 6, 2010, Polycom will hold a conference call today, Oct. 21, 2010, at 5 p.m. EDT/2 p.m. PDT to discuss its third quarter earnings. Andrew Miller, president and CEO, and Michael Kourey, chief financial officer, will host the conference call. You may participate by viewing the webcast at www.polycom.com/investors or, for callers in the US and Canada, by calling 800.763.6049; and for callers outside of the US and Canada, by calling 212.231.2900. The pass code for the call is "Polycom." A replay of the call will also be available at www.polycom.com or, for callers in the US and Canada, at 800.633.8284; and for callers outside of the US and Canada, at 402.977.9140. The access number for the replay is 21484381. A replay of the call will also be available on www.polycom.com for approximately 12 months.

Future Events

Delivering on the Promise of Unified Communications

President and CEO Andrew Miller and Chief Strategy and Technology Officer Joe Burton will host a one-hour, live global web broadcast on Monday, November 8 at 10 a.m. EST/7 a.m. PST, which will be moderated by Lane Cooper from Computerworld Magazine. For webcast details, please go to: http://www.polycom.com/company/events/webcast-miller-burton.html

Transatlantic Analyst Event

Polycom will also host a live global web broadcast on Monday, December 6 at Noon EST/9 a.m. PST. President and CEO Andrew Miller and other key members of the executive team will discuss Polycom's Unified Communications vision and strategy and provide updates on the strategic investment plan. For webcast details, please go to: http://www.polycom.com/company/investor_relations/financial_investor_events.html

Polycom reserves the right to modify future product plans at any time. Products and/or related specifications referenced in this press release are not guaranteed and will be delivered on a when and if available basis.

© 2010 Polycom, Inc. All rights reserved. POLYCOM®, the Polycom "Triangles" logo and the names and marks associated with Polycom's products are trademarks and/or service marks of Polycom, Inc. and are registered and/or common law marks in the United States and various other countries. All other trademarks are property of their respective owners.



                              POLYCOM, INC.
                      GAAP to Non-GAAP Reconciliation
                 (In thousands, except per share amounts)
                                (Unaudited)


                                               Three Months Ended
                                      -------------------------------------
                                               September 30, 2010
                                      -------------------------------------
                                        GAAP      Excluded       Non-GAAP
                                      ---------- ----------      ----------

Revenues:
    Product revenues                  $  255,496 $        -      $  255,496
    Service revenues                      52,573          -          52,573
                                      ---------- ----------      ----------
       Total revenues                    308,069          -         308,069
                                      ---------- ----------      ----------

Cost of revenues:
    Cost of product revenues              99,913      4,044  (a)     95,869
    Cost of service revenues              25,371        849  (b)     24,522
                                      ---------- ----------      ----------
       Total cost of revenues            125,284      4,893         120,391
                                      ---------- ----------      ----------

Gross profit                             182,785     (4,893)        187,678
                                      ---------- ----------      ----------

Operating expenses:
    Sales and marketing                   97,214      7,095  (b)     90,119
    Research and development              38,278      2,339  (b)     35,939
    General and administrative            19,440      4,322  (c)     15,118
    Amortization of purchased
     intangibles                           1,406      1,406               -
    Restructuring costs                    3,301      3,301               -
    Litigation reserves and payments           -          -               -
                                      ---------- ----------      ----------
       Total operating expenses          159,639     18,463         141,176
                                      ---------- ----------      ----------

Operating income                          23,146    (23,356)         46,502

Other income (expense), net                  293        249  (d)         44
                                      ---------- ----------      ----------

Income before provision for income
 taxes                                    23,439    (23,107)         46,546
Provision for income taxes                 6,171     (6,512)         12,683
                                      ---------- ----------      ----------
Net income                            $   17,268 $  (16,595)     $   33,863
                                      ========== ==========      ==========

Basic net income per share            $     0.20 $    (0.20)     $     0.40
                                      ========== ==========      ==========

Diluted net income per share          $     0.20 $    (0.18)     $     0.38
                                      ========== ==========      ==========

Weighted average shares outstanding
 for basic net income per share           85,313                     85,313
                                      ==========                 ==========

Weighted average shares outstanding
 for diluted net income per share         87,984                     87,984
                                      ==========                 ==========




                                                Nine Months Ended
                                      ------------------------------------
                                               September 30, 2010
                                      ------------------------------------
                                        GAAP      Excluded       Non-GAAP
                                      ---------  ----------      ---------

Revenues:
    Product revenues                  $ 728,348  $        -      $ 728,348
    Service revenues                    150,510           -        150,510
                                      ---------  ----------      ---------
       Total revenues                   878,858           -        878,858
                                      ---------  ----------      ---------

Cost of revenues:
    Cost of product revenues            291,463      12,310  (a)   279,153
    Cost of service revenues             74,390       2,988  (b)    71,402
                                      ---------  ----------      ---------
       Total cost of revenues           365,853      15,298        350,555
                                      ---------  ----------      ---------

Gross profit                            513,005     (15,298)       528,303
                                      ---------  ----------      ---------

Operating expenses:
    Sales and marketing                 282,491      20,658  (b)   261,833
    Research and development            108,423       7,788  (b)   100,635
    General and administrative           55,627      13,013  (c)    42,614
    Amortization of purchased
     intangibles                          4,267       4,267              -
    Restructuring costs                   6,574       6,574              -
    Litigation reserves and payments      1,235       1,235              -
                                      ---------  ----------      ---------
       Total operating expenses         458,617      53,535        405,082
                                      ---------  ----------      ---------

Operating income                         54,388     (68,833)       123,221

Other income (expense), net              (7,931)     (5,324) (d)    (2,607)
                                      ---------  ----------      ---------

Income before provision for income
 taxes                                   46,457     (74,157)       120,614
Provision for income taxes               11,174     (20,111)        31,285
                                      ---------  ----------      ---------
Net income                            $  35,283  $  (54,046)     $  89,329
                                      =========  ==========      =========

Basic net income per share            $    0.41  $    (0.64)     $    1.05
                                      =========  ==========      =========

Diluted net income per share          $    0.40  $    (0.62)     $    1.02
                                      =========  ==========      =========

Weighted average shares outstanding
 for basic net income per share          85,045                     85,045
                                      =========                  =========

Weighted average shares outstanding
 for diluted net income per share        87,864                     87,864
                                      =========                  =========


(a) For the three months ended September 30, 2010, the excluded amount
includes $3,321 related to the amortization of purchased intangibles for
core and existing technologies, $610 for stock-based compensation expense
recorded during the period and $113 related to the effect of stock-based
compensation on warranty expense rates. For the nine months ended September
30, 2010, the excluded amount includes $9,996 related to the amortization
of purchased intangibles for core and existing technologies, $1,968 for
stock-based compensation expense recorded during the period and $346
related to the effect of stock-based compensation on warranty expense
rates.

(b) Excluded amount represents stock-based compensation expense recorded
during the period.

(c) For the three months ended September 30, 2010, the excluded amount
includes $3,904 for stock-based compensation expense recorded during the
period and $418 for severance. Legal and other costs associated with the
CEO transition in May 2010.  For the nine months ended September 30, 2010,
the excluded amount includes $9,008 for stock-based compensation expense
recorded during the period and $4,005 for severance, legal and other costs
associated with the CEO transition in May 2010.

(d) For the three months ended September 30, 2010, the excluded amount
represents the net gain realized during the period on preferred equity
securities for which we previously recognized a loss as the securities were
deemed to be other than temporarily impaired. For the nine months ended
September 30, 2010, the excluded amount represents the loss recognized
during the period on preferred securities considered to be other than
temporarily impaired, net of any subsequent realized gains.




                              POLYCOM, INC.
                      GAAP to Non-GAAP Reconciliation
                 (In thousands, except per share amounts)
                                (Unaudited)


                                              Three Months Ended
                                      -----------------------------------
                                              September 30, 2009
                                      -----------------------------------
                                        GAAP     Excluded       Non-GAAP
                                      ---------  ---------      ---------

Revenues:
    Product revenues                  $ 198,955  $       -      $ 198,955
    Service revenues                     44,064          -         44,064
                                      ---------  ---------      ---------
       Total revenues                   243,019          -        243,019
                                      ---------  ---------      ---------

Cost of revenues:
    Cost of product revenues             84,288      3,950  (a)    80,338
    Cost of service revenues             20,509        740  (b)    19,769
                                      ---------  ---------      ---------
       Total cost of revenues           104,797      4,690        100,107
                                      ---------  ---------      ---------

Gross profit                            138,222     (4,690)       142,912
                                      ---------  ---------      ---------

Operating expenses:
    Sales and marketing                  70,819      2,542  (b)    68,277
    Research and development             29,004      1,669  (b)    27,335
    General and administrative           13,556      2,265  (b)    11,291
    Amortization of purchased
     intangibles                          1,446      1,446              -
    Restructuring costs                   4,632      4,632              -
    Litigation reserves and payments        700        700              -
                                      ---------  ---------      ---------
       Total operating expenses         120,157     13,254        106,903
                                      ---------  ---------      ---------

Operating income                         18,065    (17,944)        36,009

Other expense, net                         (637)         -           (637)
                                      ---------  ---------      ---------


Income before provision for income
 taxes                                   17,428    (17,944)        35,372
Provision for income taxes                3,722     (4,987)         8,709
                                      ---------  ---------      ---------
Net income                            $  13,706  $ (12,957)     $  26,663
                                      =========  =========      =========

                                      ---------  ---------      ---------
Basic net income per share            $    0.16  $   (0.16)     $    0.32
                                      =========  =========      =========

                                      ---------  ---------      ---------
Diluted net income per share          $    0.16  $   (0.15)     $    0.31
                                      =========  =========      =========

Weighted average shares outstanding
 for basic net income per share          84,189                    84,189
                                      =========                 =========

Weighted average shares outstanding
 for diluted net income per share        86,199                    86,199
                                      =========                 =========




                                               Nine Months Ended
                                      -----------------------------------
                                              September 30, 2009
                                      -----------------------------------
                                        GAAP     Excluded       Non-GAAP
                                      ---------  ---------      ---------

Revenues:
    Product revenues                  $ 570,668  $       -      $ 570,668
    Service revenues                    128,452          -        128,452
                                      ---------  ---------      ---------
       Total revenues                   699,120          -        699,120
                                      ---------  ---------      ---------

Cost of revenues:
    Cost of product revenues            242,778     12,835  (a)   229,943
    Cost of service revenues             60,569      2,110  (b)    58,459
                                      ---------  ---------      ---------
       Total cost of revenues           303,347     14,945        288,402
                                      ---------  ---------      ---------

Gross profit                            395,773    (14,945)       410,718
                                      ---------  ---------      ---------

Operating expenses:
    Sales and marketing                 203,605      7,053  (b)   196,552
    Research and development             85,532      5,430  (b)    80,102
    General and administrative           39,873      5,742  (b)    34,131
    Amortization of purchased
     intangibles                          4,344      4,344              -
    Restructuring costs                  11,476     11,476              -
    Litigation reserves and payments        700        700              -
                                      ---------  ---------      ---------
       Total operating expenses         345,530     34,745        310,785
                                      ---------  ---------      ---------

Operating income                         50,243    (49,690)        99,933

Other expense, net                       (1,995)         -         (1,995)
                                      ---------  ---------      ---------


Income before provision for income
 taxes                                   48,248    (49,690)        97,938
Provision for income taxes               11,192    (13,246)        24,438
                                      ---------  ---------      ---------
Net income                            $  37,056  $ (36,444)     $  73,500
                                      =========  =========      =========

                                      ---------  ---------      ---------
Basic net income per share            $    0.44  $   (0.44)     $    0.88
                                      =========  =========      =========

                                      ---------  ---------      ---------
Diluted net income per share          $    0.44  $   (0.42)     $    0.86
                                      =========  =========      =========

Weighted average shares outstanding
 for basic net income per share          83,855                    83,855
                                      =========                 =========

Weighted average shares outstanding
 for diluted net income per share        85,168                    85,168
                                      =========                 =========


(a) For the three months ended September 30, 2009, the excluded amount
includes $3,386 related to the amortization of purchased intangibles for
core and existing technologies, $469 for stock-based compensation expense
recorded during the period and $95 related to the effect of stock-based
compensation on warranty expense rates.  For the nine months ended
September 30, 2009, the excluded amount includes $10,066 related to the
amortization of purchased intangibles for core and existing technologies,
$1,050 related to past license fees claims, $1,437 for stock-based
compensation expense recorded during the period and $282 related to the
effect of stock-based compensation on warranty expense rates.

(b) Excluded amount represents stock-based compensation expense recorded
during the period.






                              POLYCOM, INC.
                  Condensed Consolidated Balance Sheets
                              (In thousands)
                                (Unaudited)

                                                 September 30, December 31,
                                                     2010         2009
                                                  ------------ ------------
ASSETS
Current assets
    Cash and cash equivalents                     $    307,720 $    331,098
    Investments                                        156,824      123,686
    Trade receivables, net                             147,434      132,813
    Inventories                                        107,743       76,863
    Deferred taxes                                      24,165       23,824
    Prepaid expenses and other current assets           33,199       24,299
                                                  ------------ ------------
       Total current assets                            777,085      712,583

Property and equipment, net                            104,118       81,252
Long-term investments                                   35,948       12,687
Goodwill                                               493,647      495,299
Purchased intangibles, net                              31,373       46,255
Deferred taxes                                          28,107       23,943
Other assets                                            24,188       13,882
                                                  ------------ ------------
       Total assets                               $  1,494,466 $  1,385,901
                                                  ============ ============



LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
    Accounts payable                              $    106,556 $     87,233
    Accrued payroll and related liabilities             30,943       23,707
    Taxes payable                                        4,154          617
    Deferred revenue                                    95,481       79,504
    Other accrued liabilities                           54,831       52,360
                                                  ------------ ------------
       Total current liabilities                       291,965      243,421

Non-current liabilities
Deferred revenue                                        51,437       46,787
Taxes payable                                           18,031       27,111
Deferred taxes                                           2,570        2,702
Other long-term liabilities                             12,708       12,027
                                                  ------------ ------------
       Total liabilities                               376,711      332,048

Stockholders' equity                                 1,117,755    1,053,853
                                                  ------------ ------------
       Total liabilities and stockholders' equity $  1,494,466 $  1,385,901
                                                  ============ ============




                              POLYCOM, INC.
              Condensed Consolidated Statements of Operations
                 (In thousands, except per share amounts)
                                (Unaudited)




                               Three Months Ended       Nine Months Ended
                              ---------------------   --------------------
                              September  September    September  September
                                 30,        30,          30,        30,
                                2010       2009         2010       2009
                              ---------- ---------    ---------  ---------

Revenues:
    Product revenues          $  255,496 $ 198,955    $ 728,348  $ 570,668
    Service revenues              52,573    44,064      150,510    128,452
                              ---------- ---------    ---------  ---------
       Total revenues            308,069   243,019      878,858    699,120
                              ---------- ---------    ---------  ---------

Cost of revenues:
    Cost of product revenues      99,913    84,288      291,463    242,778
    Cost of service revenues      25,371    20,509       74,390     60,569
                              ---------- ---------    ---------  ---------
       Total cost of revenues    125,284   104,797      365,853    303,347
                              ---------- ---------    ---------  ---------

Gross profit                     182,785   138,222      513,005    395,773
                              ---------- ---------    ---------  ---------

Operating expenses:
    Sales and marketing           97,214    70,819      282,491    203,605
    Research and development      38,278    29,004      108,423     85,532
    General and
     administrative               19,440    13,556       55,627     39,873
    Amortization of purchased
     intangibles                   1,406     1,446        4,267      4,344
    Restructuring costs            3,301     4,632        6,574     11,476
    Litigation reserves and
     payments                          -       700        1,235        700
                              ---------- ---------    ---------  ---------
       Total operating
        expenses                 159,639   120,157      458,617    345,530
                              ---------- ---------    ---------  ---------

Operating income                  23,146    18,065       54,388     50,243

Other income (expense), net          293      (637)      (7,931)    (1,995)
                              ---------- ---------    ---------  ---------

Income before provision for
 income taxes                     23,439    17,428       46,457     48,248
Provision for income taxes         6,171     3,722       11,174     11,192
                              ---------- ---------    ---------  ---------
Net income                    $   17,268 $  13,706    $  35,283  $  37,056
                              ========== =========    =========  =========

                              ---------- ---------    ---------  ---------
Basic net income per share    $     0.20 $    0.16    $    0.41  $    0.44
                              ========== =========    =========  =========

                              ---------- ---------    ---------  ---------
Diluted net income per share  $     0.20 $    0.16    $    0.40  $    0.44
                              ========== =========    =========  =========

Weighted average shares
 outstanding for basic
 net income per share             85,313    84,189       85,045     83,855
                              ========== =========    =========  =========

Weighted average shares
 outstanding for diluted
 net income per share             87,984    86,199       87,864     85,168
                              ========== =========    =========  =========





                              POLYCOM, INC.
              Condensed Consolidated Statements of Cash Flows
                              (In thousands)
                                (Unaudited)

                                                      Nine Months Ended
                                                  ------------------------
                                                   September    September
                                                      30,          30,
                                                      2010         2009
                                                  -----------  -----------


Cash flows from operating activities:
Net income                                        $    35,283  $    37,056
Adjustments to reconcile net income
 to net cash provided by operating activities:
      Depreciation and amortization                    29,728       24,931
      Amortization of purchased intangibles            14,263       14,405
      Provision for doubtful accounts                       -          247
      Provision for excess and obsolete
       inventories                                      3,337        3,124
      Non-cash stock based compensation                42,410       21,772
      Excess tax benefits from stock-based
       compensation                                    (6,649)      (1,638)
      Write down of investments other than
       temporarily impaired                             6,530            -
      Loss on disposals of property and equipment         215           90

      Changes in assets and liabilities, net of
       the effect of acquisitions:
           Trade receivables                          (14,621)       1,572
           Inventories                                (34,217)      17,248
           Deferred taxes                              (5,068)       1,460
           Prepaid expenses and other assets          (24,353)         213
           Accounts payable                            19,323          531
           Taxes payable                                3,571        2,974
           Other accrued liabilities                   31,913      (10,974)
                                                  -----------  -----------
Net cash provided by operating activities             101,665      113,011
                                                  -----------  -----------

Cash flows from investing activities:
       Purchase of property and equipment             (51,816)     (25,994)
       Purchases of investments                      (291,613)    (408,413)
       Proceeds from sale and maturity of
        investments                                   237,205      400,087
                                                  -----------  -----------
Net cash used in investing activities                (106,224)     (34,320)
                                                  -----------  -----------

Cash flows from financing activities:
       Proceeds from issuance of common stock
        under employee option and stock purchase
        plans                                          43,796       33,958
       Repurchase of common stock                     (69,264)     (35,439)
       Excess tax benefits from stock-based
        compensation                                    6,649        1,638
                                                  -----------  -----------
Net cash provided by (used in) financing
 activities                                           (18,819)         157
                                                  -----------  -----------

Net increase (decrease) in cash and cash
 equivalents                                          (23,378)      78,848
Cash and cash equivalents, beginning of period        331,098      165,669
                                                  -----------  -----------
Cash and cash equivalents, end of period          $   307,720  $   244,517
                                                  ===========  ===========

Contact Information

  • Investor Contact:
    Investor Relations
    Polycom, Inc.
    925-924-5907
    Email Contact

    Press Contact:
    Caroline Japic
    Polycom, Inc.
    408-474-2265
    Email Contact