Report: Analyst Optimistic About Polycom Sales

A Pleasanton, Calif.-based company that provides telepresence, video, and voice solutions, is likely to meet or exceed Wall Street sales forecasts when second-quarter results come out next week, one analyst said.

 

The Associated Press reported that Jason Ader of William Blair & Co. told clients in a note that Polycom Inc. had better sales than the previous quarter. The AP said demand for video products improved as businesses allocated more money to information technology budgets. There was also growing demand for the technology from the government sector, the report said.

 

Voice products, which are more sensitive to the economic downturn, remain weak, Ader said, but "with the macroeconomic environment stabilizing, we are optimistic that this business could be at or near a bottom in the second quarter,” according to the AP.

 

Adler said he expects Polycom (News - Alert) to meet or top his quarter estimates, which is $222 million in sales and a profit of 28 cents per share, the AP report said.

 

While Polycom’s first quarter revenue dropped by $33.5 million over the same period the previous year, company officials appeared optimistic that the telepresence, video and voice communications solutions it offers would remain strong.

 

As TMCnet reported, the company in April expected to build revenue from a wave of new network infrastructure products. Polycom said at the time that VoIP would likely be another revenue source is the future. Company officials said VoIP phones were one of the fastest-growing product lines in 2008 and they expected that trend to continue.

 

In related news, Polycom recently hired Andrew M. Miller as executive vice president of global of operations. In his new role,  Miller is in charge of leading a global sales operation of nearly 700 professionals, channel partners and strategic alliances, the company said.

 

The hiring comes as Polycom looks to ramp up sales as telepresence solutions become more popular. In a down economy, businesses are looking to tighten costs. The solutions also help organizations better compete and address the so-called “green trend” by reducing the corporate carbon footprint, Polycom said.

 

Recently, Polycom hosted an event to demonstrate the importance the technology is playing in the global environment. At its ‘UltimateHD Fest,’ customers and partners had a chance to interact with company executives on a show floor of an industry event in Orlando, Fla. using telepresence solutions. The fest linked participants from regional events in Austin, Texas, New York, Sao Paolo, Brazil, and Santa Clara, Calif.