Back to top

Analyst Blog

Polycom, Inc. (PLCM - Analyst Report) has agreed to offer its popular Polycom immersive video collaboration solutions to India-based pharmaceutical company – Dr. Reddy’s Laboratories Limited. The deal also entails Dr. Reddy’s to the Polycom RealPresence Experience (RPX) solution by the leading video and audio conferencing equipment and related network infrastructure provider.

Polycom’s video conferencing technology will bridge the gap between the employees of Dr. Reddy’s Hyderabad and New Jersey offices through direct communication. Moreover, availability of RealPresence applications on iOS and Android platforms will enable employees in the two parts of the world to attend meetings.

Polycom’s RPX technology will help the co-workers of both the corporate offices to view drug and generic samples and get feedbacks without delay. Such technology implemented by Dr. Reddy’s Laboratories will not only save time for the employees but also reduce traveling expenses.

At present, Polycom is undergoing a transition from hardware-centric to cloud and software-centric business model. The company has formed a consortium of open video exchange cloud with 14 leading telecom service providers across the world. Notable among them are Verizon Communication Inc. (VZ - Analyst Report) and AT&T Inc. (T - Analyst Report). This consortium will deliver business-to-business (B2B) video conferencing through the cloud network.

In the recently concluded first quarter, Polycom outperformed, with both the top and the bottom line beating the respective Zacks Consensus Estimate. Despite a 2% year-over-year decline in the overall revenues, the American region reported a 3% increase in revenues.

The corporate video conferencing business is mainly dominated by Cisco (CSCO - Analyst Report). Thus, we believe that winning such strategic deals will help Polycom to register revenue growth as well as to retain its market position, going forward.

Currently, Polycom carries a Zacks Rank #2 (Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%