Polycom,
Inc. (Nasdaq: PLCM), the global leader in open,
standards-based unified communication and collaboration (UC&C), today
reported financial results for the first quarter ended March 31, 2013.
First quarter 2013 consolidated net revenues were $339 million, down 2
percent year-over-year compared to $346 million for the first quarter of
2012. Non-GAAP net income for the first quarter of 2013 was $23 million,
or 13 cents per diluted share, compared to non-GAAP net income of $35
million or 20 cents per diluted share for the first quarter of 2012.
GAAP net income for the first quarter of 2013 was $3 million, or 1 cent
per diluted share, compared to GAAP net income of $15 million, or 8
cents per diluted share, for the same period last year. All periods
presented in this release have been adjusted to reflect the
classification of Polycom’s Enterprise Wireless Solutions business as
discontinued operations. The reconciliation between GAAP net income and
non-GAAP net income is provided in the tables at the end of this release.
“Polycom posted better than expected Q1 results as we continued to
deliver industry-leading products and unmatched interoperability, along
with strong sales execution,” stated Andrew M. Miller, Polycom President
and Chief Executive Officer. “With the recent release of our
breakthrough Polycom® RealPresence® CloudAXIS™ Suite, Polycom is now
shipping an innovative, best-in-class portfolio, which extends secure,
enterprise-grade video collaboration to anyone with a Web browser. We
remain focused on our long-term strategic plan to make video
collaboration ubiquitous in the enterprise.”
“We are pleased to report 3 percent year-over-year revenue growth in the
Americas, our largest geographic segment, 8 percent year-over-year
revenue growth in UC Personal Devices, and 10 percent year-over-year
revenue growth in Services,” continued Eric Brown, Polycom Chief
Operating Officer and Chief Financial Officer. “We remain confident in
our competitive position in the unified communications and collaboration
marketplace, and we are seeing good traction with our new product
releases.”
On a geographic basis, consolidated net revenues for the first quarter
of 2013 were comprised of:
-
51 percent Americas, or $171.0 million, an increase of 3 percent
year-over-year;
-
26 percent Europe, Middle East, and Africa (EMEA), or $89.1 million, a
decrease of 5 percent year-over-year; and
-
23 percent Asia Pacific, or $78.7 million, a decrease of 10 percent
year-over-year.
By product line, inclusive of its service component, consolidated net
revenues for the first quarter of 2013 were comprised of:
-
UC Group Systems of $232.4 million, a decrease of 3 percent
year-over-year;
-
UC Personal Devices of $49.3 million, an increase of 8 percent
year-over-year; and
-
UC Platform of $57.1 million, a decrease of 4 percent year-over-year.
In Q1 2013, Polycom generated a total of $49 million in operating cash
flow. Operating cash flow on a trailing 12 month basis was $204 million.
Deferred revenue balances increased 1 percent sequentially to $253
million.
Polycom repurchased $34 million of common stock in Q1 2013, leaving $39
million in remaining available authorization as of March 31, 2013.
Q1 2013 Business Highlights
Expanding Polycom’s Market Leading Solutions for Microsoft® Lync®
Environments
-
Announced broad interoperability for Microsoft® Lync® 2013 that
includes new qualified Polycom voice solutions, a new dedicated Lync
video collaboration room system, and a new software extension to the Polycom®
RealPresence® Platform that will deliver interoperability
between Lync 2013 and the full portfolio of Polycom standards-based
video collaboration and content sharing solutions.
-
Finalized
the acquisition of the assets of Sentri, Inc., a leading provider
of advanced services with expertise in Microsoft technologies
(including Lync), UC&C, video collaboration, cloud services and
networking. As a Premier Support for Lync® Partners (PSLP) certified
company, Sentri brings significant expertise integrating Microsoft
Lync with Polycom solutions that will benefit customers.
-
Announced the Polycom®
RealPresence® Content Sharing Suite, a software application for
the Polycom® RealPresence® Platform software infrastructure. The new
software solution allows Lync users to share content back and forth
with standards-based video collaboration devices such as room-based
video solutions (such as Polycom® HDX® systems) or mobile apps (such
as Polycom® RealPresence® Mobile 2.0 app).
Offering New Personal, Group and Vertical Solutions Designed to Open
New Markets and Accelerate Growth
-
Delivered on our commitment to make generally available Polycom
RealPresence CloudAXIS Suite in Q1, extending enterprise-grade video
collaboration to anyone with a Web browser for meeting face-to-face
with any business (B2B) or consumer (B2C) at the highest quality,
reliability and security.
-
Launched new Video SmartStart offerings – simple, all-inclusive,
turnkey solutions with breakthrough value that include everything a
new customer needs to deploy Polycom RealPresenceCloudAXIS Suite in
one SKU, including Polycom RealPresence Platform and implementation,
maintenance and adoption services.
-
Unveiled the Polycom® VVX® 300 and Polycom® VVX® 400 Business Media
Phones designed to improve productivity and facilitate collaboration
for office and cubicle work environments such as call centers, front
desks and administrative and corporate offices. Polycom also announced
that it has surpassed more than 10 million audio devices shipped since
the company was founded in 1990.
-
Announced the Polycom® SoundStation® Connect audio conference
solution, a plug and play USB device that allows users to enjoy
Polycom HD Voice™ technology for computer-based soft-phones, ideal for
small-group meetings anywhere in the office or on the go.
-
Announced additional Polycom solutions that are now on the GSA
schedule for purchase by U.S. government agencies, including the
Polycom® RealPresence® Practitioner Cart® 8000, a new, ergonomic
telemedicine cart, and the Polycom® CX Series of IP phones optimized
for Microsoft Lync.
Enabling Service Providers and Partners to Offer Differentiated Video
Services
-
Announced a strategic agreement with AT&T to personalize, mobilize and
virtualize video meetings. As part of the announcement, AT&T will
incorporate the highly interoperable Polycom RealPresence Platform as
part of the AT&T Telepresence
Solution video infrastructure in the AT&T Business Exchange,
including for new on-demand virtual meeting room capabilities. In
addition, AT&T Telepresence Solution customers will now have access to
a range of Polycom® RealPresence® video solutions offered in 40
countries – including immersive and multipurpose rooms, and personal
systems – as part of a managed service bundle.
-
Polycom RealPresence Platform is now powering approximately 40 service
and solution providers globally to offer Video as a Service (VaaS),
driving pull through for Polycom endpoint solutions.
-
Received CRN's respected 5-Star Rating for the Polycom
Choice Partner Program for the fourth year in a row. The 5-Star
Partner Program rating recognizes elite vendors who give solution
providers the best partnering elements in their overall channel
programs.
Earnings Call Details
Polycom will hold a conference call today, April 23, 2013, at 5:00 p.m.
EST/2:00 p.m. PST to discuss its first quarter 2013 financial results.
Andrew M. Miller, President and CEO, and Eric Brown, Chief Operating
Officer and Chief Financial Officer, will host the call. You may
participate by viewing the webcast at www.polycom.com/investors
or, for callers in the U.S. and Canada, you may participate by calling
1.800.404.5245 and for callers outside of the U.S. and Canada, by
calling 1.303.223.2680. The pass code for the call is “Polycom.” A
replay of the call will also be available at www.polycom.com
or, for callers in the U.S. and Canada, at 1.800.633.8284 and, for
callers outside of the U.S. and Canada, at 1.402.977.9140. The access
number for the replay is 21654613. A replay of the call will be
available on www.polycom.com
for at least three months.
Forward Looking Statements and Risk Factors
This release contains forward-looking statements within the meaning of
the “safe harbor” provisions of the Private Securities Litigation Reform
Act of 1995 regarding future events, future demand for our products, and
the future performance of the Company, including statements regarding
continuing to execute on our long-term strategic plan to make video
collaboration ubiquitous in the enterprise, our competitive position in
the UC&C marketplace, the ability of our new solutions to open new
markets and accelerate growth, VaaS as driving pull through for Polycom
endpoint solutions, and the anticipated market receptivity and
availability of our new product releases and the future product
offerings of us and our partners. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially, including the impact of competition on our product
sales and for our customers and partners; the impact of increased
competition due to consolidation in our industry or competition from
companies that are larger or that have greater resources than we do;
potential fluctuations in results and future growth rates; risks
associated with global economic conditions and external market factors;
the market acceptance of our products and changing market demands,
including demands for differing technologies or product and services
offerings; our ability to successfully integrate our acquisitions into
our business; possible delays in the development, availability and
shipment of new products due to engineering, manufacturing or other
delays; increasing costs and differing uses of capital; changes in key
personnel that may cause disruption to the business; the impact of
restructuring actions; and the impact of global conflicts that may
adversely impact our business. Many of these risks and uncertainties are
discussed in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2012, and in other reports filed by Polycom with the SEC.
Polycom disclaims any intent or obligations to update these
forward-looking statements.
Polycom reserves the right to modify future product plans at any time.
Products and/or related specifications referenced in this press release
are not guaranteed and will be delivered on a when and if available
basis.
GAAP to non-GAAP Reconciliation
To supplement our consolidated financial statements presented on a GAAP
basis, Polycom uses non-GAAP measures of operating results, net income
and income per share, which are adjusted to exclude certain costs,
expenses, gains, and losses we believe appropriate to enhance an overall
understanding of our past financial performance and also our prospects
for the future. These adjustments to our current period GAAP results are
made with the intent of providing both management and investors a more
complete understanding of Polycom's underlying operational results and
trends and our marketplace performance. For example, the non-GAAP
results are an indication of our baseline performance before gains,
losses, or other charges that are considered by management to be outside
of our core operating results. In addition, these adjusted non-GAAP
results are among the primary indicators management uses as a basis for
our planning and forecasting of future periods. The presentation of this
additional information is not meant to be considered in isolation or as
a substitute for net income or diluted net income per share prepared in
accordance with generally accepted accounting principles in the United
States.
About Polycom
Polycom is the global leader in open, standards-based unified
communications and collaboration (UC&C) solutions for voice and video
collaboration, trusted by more than 415,000 customers around the world.
Polycom solutions are powered by the Polycom® RealPresence® Platform,
comprehensive software infrastructure and rich APIs that interoperate
with the broadest set of communication, business, mobile and cloud
applications and devices to deliver secure face-to-face video
collaboration in any environment. Polycom and its ecosystem of over
7,000 partners provide truly unified communications solutions that
deliver the best user experience, highest multi-vendor interoperability,
and lowest TCO. Visit www.polycom.com
or connect with us on Twitter,
Facebook,
and LinkedIn
to learn how we're pushing the greatness of human collaboration forward.
© 2013 Polycom, Inc. All rights reserved. POLYCOM®, the Polycom logo,
and the names and marks associated with Polycom’s products are
trademarks and/or service marks of Polycom, Inc. and are registered
and/or common law marks in the United States and various other
countries. All other trademarks are property of their respective owners.
|
POLYCOM, INC.
|
Condensed Consolidated Statements of Operations
|
(In thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
March 31,
|
|
|
2013
|
|
|
2012
|
Revenues:
|
|
|
|
|
|
Product revenues
|
|
$
|
246,129
|
|
|
|
$
|
261,274
|
|
Service revenues
|
|
|
92,623
|
|
|
|
|
84,436
|
|
Total revenues
|
|
|
338,752
|
|
|
|
|
345,710
|
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
|
Cost of product revenues
|
|
|
101,878
|
|
|
|
|
105,130
|
|
Cost of service revenues
|
|
|
37,777
|
|
|
|
|
34,244
|
|
Total cost of revenues
|
|
|
139,655
|
|
|
|
|
139,374
|
|
|
|
|
|
|
|
Gross profit
|
|
|
199,097
|
|
|
|
|
206,336
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Sales and marketing
|
|
|
108,715
|
|
|
|
|
112,167
|
|
Research and development
|
|
|
55,935
|
|
|
|
|
49,702
|
|
General and administrative
|
|
|
23,694
|
|
|
|
|
21,317
|
|
Amortization of purchased intangibles
|
|
|
2,502
|
|
|
|
|
2,327
|
|
Restructuring costs
|
|
|
5,423
|
|
|
|
|
2,923
|
|
Acquisition-related expenses
|
|
|
3,323
|
|
|
|
|
1,914
|
|
Total operating expenses
|
|
|
199,592
|
|
|
|
|
190,350
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
(495
|
)
|
|
|
|
15,986
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
(759
|
)
|
|
|
|
(1,787
|
)
|
|
|
|
|
|
|
Income (loss) from continuing operations before provision for income
taxes
|
|
|
(1,254
|
)
|
|
|
|
14,199
|
|
Provision (benefit) for income taxes
|
|
|
(3,371
|
)
|
|
|
|
1,850
|
|
Income from continuing operations
|
|
|
2,117
|
|
|
|
|
12,349
|
|
|
|
|
|
|
|
Income from operations of discontinued operations, net of taxes
|
|
|
-
|
|
|
|
|
2,753
|
|
Gain from sale of discontinued operations, net of taxes
|
|
|
459
|
|
|
|
|
-
|
|
Net income
|
|
$
|
2,576
|
|
|
|
$
|
15,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share:
|
|
|
|
|
|
Income per share from continuing operations
|
|
$
|
0.01
|
|
|
|
$
|
0.07
|
|
Income per share from operations of discontinued operations, net of
taxes
|
|
$
|
-
|
|
|
|
$
|
0.02
|
|
Gain per share from sale of discontinued operations, net of taxes
|
|
$
|
-
|
|
|
|
$
|
-
|
|
Basic net income per share
|
|
$
|
0.01
|
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
Diluted net income per share:
|
|
|
|
|
|
Income per share from continuing operations
|
|
$
|
0.01
|
|
|
|
$
|
0.07
|
|
Income per share from operations of discontinued operations, net of
taxes
|
|
$
|
-
|
|
|
|
$
|
0.02
|
|
Gain per share from sale of discontinued operations, net of taxes
|
|
$
|
-
|
|
|
|
$
|
-
|
|
Diluted net income per share
|
|
$
|
0.01
|
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
Number of shares used in computation of net income per share:
|
|
|
|
Basic
|
|
|
176,079
|
|
|
|
|
177,427
|
|
Diluted
|
|
|
179,140
|
|
|
|
|
180,488
|
|
|
|
|
|
|
|
Note: Earnings per share amounts for continuing operations,
discontinued operations and net income, as presented above, are
calculated individually and may not sum due to rounding
differences.
|
|
|
|
|
|
|
POLYCOM, INC.
|
Reconciliation of GAAP to Non-GAAP Net Income
|
(In thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
March 31,
|
|
March 31,
|
|
2013
|
|
2012
|
|
|
|
|
GAAP net income
|
$
|
2,576
|
|
|
$
|
15,102
|
|
|
|
|
|
Income from operations of discontinued operations, net of tax
|
|
-
|
|
|
|
(2,753
|
)
|
Gain from sale of discontinued operations, net of tax
|
|
(459
|
)
|
|
|
-
|
|
Amortization of purchased intangibles
|
|
3,750
|
|
|
|
4,236
|
|
Restructuring costs
|
|
5,423
|
|
|
|
2,923
|
|
Acquisition-related expenses
|
|
3,323
|
|
|
|
1,914
|
|
Stock-based compensation expense
|
|
17,771
|
|
|
|
17,752
|
|
Effect of stock-based compensation on warranty rates
|
|
157
|
|
|
|
188
|
|
Severance costs associated with CFO retirement
|
|
-
|
|
|
|
929
|
|
Legal costs associated with the indemnification of a former officer
|
|
-
|
|
|
|
115
|
|
Income tax adjustments
|
|
(9,205
|
)
|
|
|
(5,167
|
)
|
|
|
|
|
Non-GAAP net income
|
$
|
23,336
|
|
|
$
|
35,239
|
|
|
|
|
|
GAAP earnings per share:
|
|
|
|
Basic
|
$
|
0.01
|
|
|
$
|
0.09
|
|
Diluted
|
$
|
0.01
|
|
|
$
|
0.08
|
|
|
|
|
|
Non-GAAP earnings per share:
|
|
|
|
Basic
|
$
|
0.13
|
|
|
$
|
0.20
|
|
Diluted
|
$
|
0.13
|
|
|
$
|
0.20
|
|
|
|
|
|
Number of shares used in computation of earnings per share:
|
|
|
Basic
|
|
176,079
|
|
|
|
177,427
|
|
Diluted
|
|
179,140
|
|
|
|
180,488
|
|
|
|
|
|
|
|
|
|
POLYCOM, INC.
|
Condensed Consolidated Balance Sheets
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
502,851
|
|
|
$
|
477,073
|
Short-term investments
|
|
|
179,939
|
|
|
|
197,196
|
Trade receivables, net
|
|
|
179,901
|
|
|
|
194,654
|
Inventories
|
|
|
97,551
|
|
|
|
99,960
|
Deferred taxes
|
|
|
48,874
|
|
|
|
48,916
|
Prepaid expenses and other current assets
|
|
|
55,592
|
|
|
|
55,454
|
Total current assets
|
|
|
1,064,708
|
|
|
|
1,073,253
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
130,325
|
|
|
|
133,319
|
Long-term investments
|
|
|
45,650
|
|
|
|
50,333
|
Goodwill and purchased intangibles
|
|
|
613,229
|
|
|
|
608,802
|
Deferred taxes
|
|
|
26,454
|
|
|
|
28,406
|
Other assets
|
|
|
27,764
|
|
|
|
21,238
|
Total assets
|
|
$
|
1,908,130
|
|
|
$
|
1,915,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable
|
|
$
|
100,805
|
|
|
$
|
89,983
|
Accrued payroll and related liabilities
|
|
|
27,277
|
|
|
|
39,469
|
Taxes payable
|
|
|
4,266
|
|
|
|
4,736
|
Deferred revenue
|
|
|
160,929
|
|
|
|
158,482
|
Other accrued liabilities
|
|
|
53,821
|
|
|
|
63,018
|
Total current liabilities
|
|
|
347,098
|
|
|
|
355,688
|
|
|
|
|
|
|
Long-term deferred revenue
|
|
|
92,060
|
|
|
|
91,061
|
Taxes payable
|
|
|
16,287
|
|
|
|
15,598
|
Deferred taxes
|
|
|
232
|
|
|
|
236
|
Other non-current liabilities
|
|
|
25,695
|
|
|
|
22,079
|
Total liabilities
|
|
|
481,372
|
|
|
|
484,662
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
1,426,758
|
|
|
|
1,430,689
|
Total liabilities and stockholders' equity
|
|
$
|
1,908,130
|
|
|
$
|
1,915,351
|
|
|
|
|
|
|
|
|
POLYCOM, INC.
|
Condensed Consolidated Statements of Cash Flows
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
March 31,
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,576
|
|
|
|
$
|
15,102
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
16,430
|
|
|
|
|
14,438
|
|
Amortization of purchased intangibles
|
|
|
3,768
|
|
|
|
|
6,446
|
|
Provision for excess and obsolete inventories
|
|
|
2,934
|
|
|
|
|
2,310
|
|
Provision for doubtful accounts
|
|
|
-
|
|
|
|
|
250
|
|
Stock-based compensation expense
|
|
|
17,771
|
|
|
|
|
18,146
|
|
Excess tax benefits from stock-based compensation
|
|
|
(155
|
)
|
|
|
|
(4,939
|
)
|
Loss on disposals of property and equipment
|
|
|
1,206
|
|
|
|
|
233
|
|
Net gain on sale of discontinued operations
|
|
|
(459
|
)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities, net of the effect of
acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
Trade receivables
|
|
|
17,179
|
|
|
|
|
8,118
|
|
Inventories
|
|
|
(525
|
)
|
|
|
|
(16,729
|
)
|
Deferred taxes
|
|
|
1,994
|
|
|
|
|
1,206
|
|
Prepaid expenses and other assets
|
|
|
(4,530
|
)
|
|
|
|
(10,132
|
)
|
Accounts payable
|
|
|
7,857
|
|
|
|
|
(855
|
)
|
Taxes payable
|
|
|
(1,681
|
)
|
|
|
|
4,632
|
|
Other accrued liabilities
|
|
|
(15,351
|
)
|
|
|
|
(6,189
|
)
|
Net cash provided by operating activities
|
|
|
49,014
|
|
|
|
|
32,037
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(12,757
|
)
|
|
|
|
(15,800
|
)
|
Purchases of investments
|
|
|
(55,368
|
)
|
|
|
|
(92,355
|
)
|
Proceeds from sale of investments
|
|
|
9,227
|
|
|
|
|
4,169
|
|
Proceeds from maturities of investments
|
|
|
68,136
|
|
|
|
|
76,900
|
|
Net cash received from sale of discontinued operations
|
|
|
556
|
|
|
|
|
-
|
|
Net cash (paid in) received from purchase acquisitions
|
|
|
(8,350
|
)
|
|
|
|
85
|
|
Net cash provided by (used in) investing activities
|
|
|
1,444
|
|
|
|
|
(27,001
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock under employee option and
stock purchase plans
|
|
|
13,206
|
|
|
|
|
14,607
|
|
Repurchase and retirement of common stock
|
|
|
(38,041
|
)
|
|
|
|
(9,745
|
)
|
Excess tax benefits from stock-based compensation
|
|
|
155
|
|
|
|
|
4,939
|
|
Net cash provided by (used in) financing activities
|
|
|
(24,680
|
)
|
|
|
|
9,801
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
25,778
|
|
|
|
|
14,837
|
|
Cash and cash equivalents, beginning of period
|
|
|
477,073
|
|
|
|
|
375,441
|
|
Cash and cash equivalents, end of period
|
|
$
|
502,851
|
|
|
|
$
|
390,278
|
|
|
|
|
|
|
|
|
|
|
|
POLYCOM, INC.
|
Reconciliations of GAAP Measures to Non-GAAP Measures
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
March 31,
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
GAAP cost of revenues used in inventory turns
|
|
$
|
139,655
|
|
|
|
$
|
139,374
|
|
Stock-based compensation expense
|
|
|
(2,337
|
)
|
|
|
|
(2,297
|
)
|
Effect of stock-based compensation on warranty rates
|
|
|
(157
|
)
|
|
|
|
(188
|
)
|
Amortization of purchased intangibles
|
|
|
(1,248
|
)
|
|
|
|
(1,909
|
)
|
Non-GAAP cost of revenues used in inventory turns
|
|
$
|
135,913
|
|
|
|
$
|
134,980
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
199,097
|
|
|
|
$
|
206,336
|
|
Stock-based compensation expense
|
|
|
2,337
|
|
|
|
|
2,297
|
|
Effect of stock-based compensation on warranty rates
|
|
|
157
|
|
|
|
|
188
|
|
Amortization of purchased intangibles
|
|
|
1,248
|
|
|
|
|
1,909
|
|
Non-GAAP gross profit
|
|
$
|
202,839
|
|
|
|
$
|
210,730
|
|
Non-GAAP gross margin
|
|
|
59.9
|
%
|
|
|
|
61.0
|
%
|
|
|
|
|
|
|
GAAP sales and marketing expense
|
|
$
|
108,715
|
|
|
|
$
|
112,167
|
|
Stock-based compensation expense
|
|
|
(6,636
|
)
|
|
|
|
(7,644
|
)
|
Non-GAAP sales and marketing expense
|
|
$
|
102,079
|
|
|
|
$
|
104,523
|
|
Non-GAAP sales and marketing expense as percent of revenues
|
|
|
30.1
|
%
|
|
|
|
30.2
|
%
|
|
|
|
|
|
|
GAAP research and development expense
|
|
$
|
55,935
|
|
|
|
$
|
49,702
|
|
Stock-based compensation expense
|
|
|
(4,721
|
)
|
|
|
|
(4,547
|
)
|
Non-GAAP research and development expense
|
|
$
|
51,214
|
|
|
|
$
|
45,155
|
|
Non-GAAP research and development expense as percent of revenues
|
|
|
15.1
|
%
|
|
|
|
13.1
|
%
|
|
|
|
|
|
|
GAAP general and administrative expense
|
|
$
|
23,694
|
|
|
|
$
|
21,317
|
|
Stock-based compensation expense
|
|
|
(4,077
|
)
|
|
|
|
(3,264
|
)
|
Severance costs associated with CFO retirement
|
|
|
-
|
|
|
|
|
(929
|
)
|
Legal costs associated with the indemnification of a former officer
|
|
|
-
|
|
|
|
|
(115
|
)
|
Non-GAAP general and administrative expense
|
|
$
|
19,617
|
|
|
|
$
|
17,009
|
|
Non-GAAP general and administrative expense as percent of revenues
|
|
|
5.8
|
%
|
|
|
|
4.9
|
%
|
|
|
|
|
|
|
GAAP total operating expenses
|
|
$
|
199,592
|
|
|
|
$
|
190,350
|
|
Stock-based compensation expense
|
|
|
(15,434
|
)
|
|
|
|
(15,455
|
)
|
Amortization of purchased intangibles
|
|
|
(2,502
|
)
|
|
|
|
(2,327
|
)
|
Restructuring costs
|
|
|
(5,423
|
)
|
|
|
|
(2,923
|
)
|
Acquisition-related expenses
|
|
|
(3,323
|
)
|
|
|
|
(1,914
|
)
|
Severance costs associated with CFO retirement
|
|
|
-
|
|
|
|
|
(929
|
)
|
Legal costs associated with the indemnification of a former officer
|
|
|
-
|
|
|
|
|
(115
|
)
|
Non-GAAP total operating expenses
|
|
$
|
172,910
|
|
|
|
$
|
166,687
|
|
Non-GAAP total operating expenses as percent of revenues
|
|
|
51.0
|
%
|
|
|
|
48.2
|
%
|
|
|
|
|
|
|
GAAP operating income (loss)
|
|
$
|
(495
|
)
|
|
|
$
|
15,986
|
|
Stock-based compensation expense
|
|
|
17,771
|
|
|
|
|
17,752
|
|
Effect of stock-based compensation on warranty rates
|
|
|
157
|
|
|
|
|
188
|
|
Amortization of purchased intangibles
|
|
|
3,750
|
|
|
|
|
4,236
|
|
Restructuring costs
|
|
|
5,423
|
|
|
|
|
2,923
|
|
Acquisition-related expenses
|
|
|
3,323
|
|
|
|
|
1,914
|
|
Severance costs associated with CFO retirement
|
|
|
-
|
|
|
|
|
929
|
|
Legal costs associated with the indemnification of a former officer
|
|
|
-
|
|
|
|
|
115
|
|
Non-GAAP operating income
|
|
$
|
29,929
|
|
|
|
$
|
44,043
|
|
Non-GAAP operating margin
|
|
|
8.8
|
%
|
|
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
POLYCOM, INC.
|
Summary of Stock-Based Compensation Expense
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
March 31,
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
Cost of sales - product
|
|
$
|
861
|
|
|
$
|
958
|
Cost of sales - service
|
|
|
1,476
|
|
|
|
1,339
|
Stock-based compensation expense in cost of sales
|
|
|
2,337
|
|
|
|
2,297
|
|
|
|
|
|
|
Sales and marketing
|
|
|
6,636
|
|
|
|
7,644
|
Research and development
|
|
|
4,721
|
|
|
|
4,547
|
General and administrative
|
|
|
4,077
|
|
|
|
3,264
|
Stock-based compensation expense in operating expenses
|
|
|
15,434
|
|
|
|
15,455
|
|
|
|
|
|
|
Total stock-based compensation expense
|
|
$
|
17,771
|
|
|
$
|
17,752
|