Polycom Q1 2014 result: revenue dips 3%, net loss at $4 million

Enterprise video conferencing vendor Polycom said its Q1 2014 revenue decreased 3 percent to $328.5 million, while it posted net loss of $4 million against net income of $2.6 million in Q1 2013.

Polycom said its revenue contribution in America decreased marginally to 50 percent from 51 percent, EMEA revenue increased to 27 percent from 26 percent and Asia Pacific 23 percent (23 percent).

UC group system contributed 65 percent revenue (69 percent), UC personal devices 17 percent (15 percent) and UC platform 18 percent (19 percent).

Peter Leav, Polycom President and Chief Executive Officer, said: “Future earnings growth at Polycom will be driven by improvements in processes across the organization, operational cost containment, and the pursuit of profitable revenue growth.”

Peter Leav, Polycom President and Chief Executive Officer

Polycom is confident that it would improve its performance in coming quarter. Polycom reported 3 percent growth in UC Platform and 15 percent growth in UC Personal Devices. Polycom’s UC Platform category includes Polycom RealPresence hardware and software infrastructure solutions. UC Personal Devices includes OpenStep and Microsoft Lync enabled voice solutions.

New focus areas

Polycom CEO said it will prioritize efforts to improve operating margins through informed strategic decisions and enhanced operational performance. It is educating and guiding sales team and channel partners to prioritize Polycom’s expanded portfolio with a solutions oriented approach. It will invest in long-term areas of growth like platform software, services and video content management. It’s committed to voice business from the desktop to the conference room.

“With our latest software release in January, we are seeing a quicker than expected transition to the new Group Series product line. This will provide our customers with a new simplified user interface and greater scalability for multipoint conferences, while also driving higher gross margins for Polycom. The new Group Series accounted for 36 percent of total group video revenue in Q1 2014, up from 26 percent the prior quarter,” Leav said.

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