Telecom & Wireless
Polycom Issues Severe Sales & Earnings Warning (PLCM)
Published:
Last Updated:
Polycom Inc. (NASDAQ: PLCM) is out lowering its expectations on sales during the first quarter. The videoconferencing and enterprise telephone maker cut its outlook for revenues and profits that were well under expectations. The company cited conditions being much weaker than expected throughout Asia and also in North America.
Polycom’s new range is earnings for $0.21 to $0.23 in earnings per share (non-GAAP) and sales of about $364 million to $370 million. Thomson Reuters had estimates of $0.30 EPS on sales of about $399.7 million. When the company issued guidance early in 2012 the company forecast that sales would be down about 2% or roughly $399 million.
This is about 8% under plan, which is a serious miss when you consider that the first quarter has now formally ended. This one cannot just be blamed on currency woes. To show just how bad this is, Polycom shares are indicated down about 16% at $15.25 in the pre-market trading and its 52-week low is $14.45. Shares were north of $32 last summer before the market slide went into overdrive.
JON C. OGG
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
