Polycom Plans RealPresence Update, Continues Search for CEO
Polycom reports third quarter 2013 earnings as Interim CEO details product progress
Despite some organizational drama last quarter, unified communications vendor Polycom continues to grow its business. Polycom reported third quarter fiscal 2013 results late Wednesday, with interim CEO Kevin Parker providing a status update on operations and upcoming products.
Parker stepped into the CEO role after former CEO Andy Miller resigned at the end of the second quarter over allegations of irregularities in expense submissions.
Polycom reported $336.5 million in revenue for the third quarter, up marginally from the $335.4 million reported in 2012. The vendor also reported a net loss of $24 million for the quarter, a sharp increase from the $14.8 million reported for the third quarter of 2012. Looking forward, Polycom provided guidance for fourth quarter 2013 revenue to range from $336 million to $346 million.
Parker took an optimistic tone during his company's earnings call, pointing out a number of significant wins for Polycom.
"We won a number of important deals during the quarter and had solid results in our federal business," Parker said. "We saw deal success in the large enterprise segment, where customers are making significant new investments in our video, voice and content-sharing products and services."
Parker commented that revenue from Microsoft Lync-related Polycom products showed double-digit growth during the quarter, bolstered by a large deal with Northrop Grumman.
Polycom is also growing its managed services business with an over $25 million, three-year managed services contract extension with a large multinational company. Parker did not name the company, but did say the deal closed just after the end of the third quarter.
"Under this new agreement, Polycom will manage and service their video infrastructure and endpoints," Parker said. "Expanding our Enterprise Managed Services business also affords Polycom a predictable revenue stream as an opportunity to sell additional endpoints and infrastructure."
Parker said that in the fourth quarter, Polycom will release the latest iteration of its RealPresence Platform.
"This new software solution will deliver Polycom's video bridging technology via the cloud," Parker said. "We believe this sets the stage for a new wave of customer deployments of our solution as a Software Defined Data Center application."
Parker is only supposed to be the interim CEO as the company looks for a permanent replacement. He said that the Polycom Board of Directors is currently reviewing candidates for the position, though the expectation is that it will still take an undisclosed amount of time until the process is completed.
"Until then, I'm committed to the CEO role of Polycom and to the strategic and operational improvements that I believe are possible for the benefit of our employees, customers, partners and shareholders," Parker said.
Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist