Polycom issues Q1 warning as North America revenue weakens
The company on Thursday projected non-GAAP earnings of 21 cents a share to 23 cents a share (7 cents to 9 cents a share GAAP) on revenue between $364 million to $370 million. Wall Street was expecting earnings of 30 cents a share on revenue of $399.7 million.
Polycom CEO Andrew Miller said all regions showed revenue gains compared to a year ago, but the company was expecting higher revenue growth. First quarter revenue will be up about 7 percent from a year ago.
Miller added that Polycom "will analyze our assumptions" before the company reports earnings April 18.
The warning is a bit of a comedown for Polycom, which has been on a tear in recent years. Meanwhile, Polycom has transitioned nicely from audio conferencing to video and telepresence. Toss in strong partnerships with the likes of Microsoft and integration with Lync, the software giant's unified communications software and Polycom has a lot of assets.
Americas growth for Polycom was anemic in the first quarter at 1 percent to 3 percent from a year ago. EMEA growth was strong at 15 percent to 17 percent and Asia Pacific growth was 5 percent to 8 percent. Polycom's unified communications systems group saw revenue growth of 4 to 6 percent in the first quarter.
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