Following up a relatively even second quarter, Polycom continued that trend with its third quarter earnings report on Tuesday after the bell.
The videoconferencing solutions provider reported a net loss of $15 million, or 8 cents a share (statement), for the third quarter -- compared to a net income of $20 million, or 11 cents per share, for the same period last year.
Non-GAAP earnings were 10 cents a share on a revenue of $335 million -- a 6 percent decrease from Q3 2011.
Despite some dips from 2011, Polycom still surpassed Wall Street's targets. Analysts expected Polycom to report third quarter earnings of 8 cents a share on revenue of $331 million.
Polycom CEO and president Andrew M. Miller commented in prepared remarks:
Demand for our best in class UC&C solutions was solid in Q3, which allowed us to come in at the high end of our revenue expectations and exceed our earnings expectations. We have been taking market share in 2012 as a result of our open standards-based Polycom RealPresence Platform and compelling cost of ownership advantage.
Earlier this month on October 8, we unveiled a comprehensive set of breakthrough products launching in Q4 2012 and early 2013, that we believe will further distance us from the competition, expand our total addressable market, and drive mass adoption of video collaboration.
Polycom did not provide an outlook for the fourth quarter, but Wall Street is expecting Polycom to report earnings of 15 cents a share on revenue of $359.5 million.
By the numbers:
- Non-GAAP Q3 net income was $17 million, down from $42 million for the third quarter of 2011.
- Polycom's RealPresence unified communications software platform grew 4 percent, year-over-year. But the Group Systems and Personal Devices units were down 8 percent and 3 percent, respectively.
- On a geographic basis, Polycom's units in for Americas, Europe/Middle East/Africa, and Asia/Pacific were also all down by single digit percentage points, year-over-year.
- Introduced Adoption Services: Designed to enable customers to reap more return on video collaboration services investments; Includes support for integration with Microsoft Lync, IBM SharePoint and other UC platforms
- Formed new partnership with IBM Research to co-develop next-generation solutions to accelerate cloud-based video collaboration applications for vertical and social uses
- Launched RealPresence Resource Manager for large scale video deployments of up to 10,000 endpoints along with multi-tenancy for service providers to deliver Video-Collaboration-as-a-Service