A leading provider of video and audio conferencing equipment and related network infrastructure, Polycom, Inc. (PLCM - Analyst Report) recently unveiled a new technology called Polycom SoundStation Connect, which offers HD voice technology to PC-based soft-phones, hence facilitating small-group meetings inside or outside the office premises.
SoundStation Connect technology provides sound clarity during a meeting by eliminating background noise, echo and feedback, while microphone pickup encircles an area of around 7 feet.
The new technology, when connected directly into any PC or laptops USB port requires no software to run the application. The new SoundStation Connect is well supported with USB power and is well suited to most UC soft-phone applications used on computers that support USB audio.
In Jan 2013, Polycom entered into a strategic agreement with AT&T Inc. (T - Analyst Report) , to offer cloud-based video conferencing services to different organizations. According to the company, the collaboration will mobilize and virtualized video meetings, thereby easing the video communication process for the businesses.
Recently, Polycom declared its fourth-quarter 2012 financial results where the company’s bottom line missed the Zacks Consensus Estimate the top line beat. However, revenue for the quarter declined by 8.6% year over year.
At present, Polycom is undergoing 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. This consortium will deliver business-to-business (B2B) video conferencing through the cloud network.
The corporate video conferencing business is mainly dominated by Cisco (CSCO - Analyst Report) . So development of such technology will help Polycom to improve its revenue growth as well as to retain its market position going forward.
Currently, Polycom carries a Zacks Rank #3 (Hold).