Polycom Inc. posted first-quarter 2013 adjusted earnings per share (excluding stock-based compensation items) of 6 cents, breezing past the Zacks Consensus Estimate of 1 cent.
GAAP net income in the first quarter of 2013 was $2.6 million or 1 cent per share compared with GAAP net income of $15.1 million or 8 cents per share in the prior-year quarter.
Total revenue in the first quarter of 2013 was $339 million, down 2.0% year over year, but just above the Zacks Consensus Estimate of $336 million. Segment wise, UC Group Systems revenues were $232.4 million, down 3% year over year. UC Personal Devices revenues were $49.3 million, up 8% year over year. UC Platform (Network Infrastructure) revenues were $57.1 million, down 4% year over year.
Geographic Distribution of Sales
In the first quarter of 2013, America generated approximately $171.0 million of revenues, up 3% year over year. Europe, the Middle East and Africa generated $89.1 million, down 5% year over year. Asia-Pacific accounted for the remaining $78.7 million, down 10% year over year.
Gross margin in the reported quarter was 58.8% compared with 59.7% in the year-ago quarter. Quarterly operating expenses were $199.6 million, up 4.9% year over year. The increase in operating expenses was based on higher restructuring and research and development expenses.
At the end of first-quarter 2013, Polycom had nearly $682.8 million of cash and short-term investments on its balance sheet compared with $674.3 million at the end of 2012. Its balance sheet remained clear of any outstanding debt at the end of the first quarter of 2013.
Cash flow from operations at the end of the first quarter of 2013 was $49.0 million, up from $32.0 million at the end of the first quarter of 2012. Free cash flow (cash flow from operations less capital expenditure) was $36.3 million at the end of first-quarter 2013 up from $16.2 million at the end of 2012.
Currently, Polycom Inc. carries a Zacks Rank #3 (Hold).
Other Stocks to consider
Other stocks worth considering in this sector include Qualcomm Inc. (QCOM - Analyst Report) , Motorola Solutions Inc. (MSI - Analyst Report) and AT&T Inc. (T - Analyst Report) . Currently QCOM carries a Zacks Rank #1 (Strong Buy) while MSI and T carry a Zacks Rank #2 (Buy).