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