Polycom reports fourth quarter and fiscal year 2011 earnings

Polycom, the global leader in standards-based unified communications (UC), today reported its earnings for the fourth quarter and fiscal year ended December 31, 2011.

Fourth quarter 2011 consolidated net revenues were a record $407 million, compared to $340 million for the fourth quarter of 2010. GAAP net income for the fourth quarter of 2011 was $50 million, or 28 cents per diluted share, compared to $33 million, or 19 cents per diluted share, for the same period last year. Non-GAAP net income for the fourth quarter of 2011 was $74 million, or 41 cents per diluted share, compared to non-GAAP net income of $43 million, or 24 cents per diluted share, for the fourth quarter of 2010. Note that the share and per share data for all periods presented in this release have been adjusted to reflect the two-for-one stock split that was effective July 1, 2011.

For the year ended December 31, 2011, net revenues were $1.5 billion, compared to $1.2 billion for the year ended December 31, 2010. GAAP net income for the year ended December 31, 2011 was $136 million, or 75 cents per diluted share, compared to GAAP net income of $68 million, or 39 cents per diluted share, for the same period last year. Non-GAAP net income for the year ended December 31, 2011 was $213 million, or $1.18 per diluted share, compared to $133 million, or $0.75 per diluted share, for the same period last year.

The reconciliation between GAAP net income and non-GAAP net income is provided in the tables at the end of this release.  

On a geographic basis, consolidated net revenues for the fourth quarter of 2011 were comprised of:

48 percent Americas, or $193.8 million, an increase of 7 percent year-over-year;

27 percent Europe, Middle East, and Africa, or $109.7 million, an increase of 28 percent year-over-year; and

25 percent Asia Pacific, or $103.5 million, an increase of 42 percent year-over-year.

“2011 closed strong with full-year revenues of $1.5 billion, driven by particular strength in sales of the Polycom RealPresence Platform and broad geographic growth,” said Andrew Miller, Polycom president and CEO. “Enabled by Polycom’s innovations, we experienced unprecedented demand for our secure, interoperable, unified collaboration solutions by both enterprise and service provider customers.  Leveraging our industry-leading technology and powerful network of strategic partners, Polycom’s cloud, mobility, and software-driven infrastructure strategy is beginning to yield and we look forward to another year of solid growth in 2012.”

“Polycom generated 20 percent year-over-year revenue growth in Q4, which drove revenues, operating profits, and operating cash flow to record levels,” said Michael Kourey, Polycom’s executive vice president, finance and administration, and CFO. “We are pleased to have achieved significant operating margin expansion and unprecedented operating cash flow of $122 million in the fourth quarter. Net of the strategic acquisitions and stock repurchases in the period, Polycom exited 2011 with $592 million in cash and investments and no debt.”