Polycom’s profits fell in Q2, partly because demand in Europe slumped 2% as the videoconferencing company earned globally $5.6 million on sales of $358.5 million. EMEA represents 22% or $80.4 million of Polycom’s revenue… (actually, a low penetration when compared to America’s 50% and APAC 27%).
Profit’s down, business flat…maybe that’s why CEO Andrew Miller says, "In the second half of this year, we will be launching a series of products that we believe will be game-changing."
Game-changing. That’s quite a promise when you make it to Wall Street. Then you need to put your money where your mouth is: so Eric Brown, Polycom COO and CFO confirms, “Our primary focus for the balance of the year will be allocating resources to support our key upcoming new product launches.”
Miller continues, “Most recently, we launched the new Polycom RealPresence Resource Manager offering that further differentiates our Polycom RealPresence Platform with support for large scale video deployments of up to 10,000 endpoints, including mobile devices, multi-tenancy for service providers to deliver Video-as-a-Service cost-effectively, and a new suite of rich, open APIs that extends the value and ecosystem around our RealPresence Platform.”
But what’s Polycom got that’s game-changing? It’s definitely not in their Enterprise Wireless Solutions (EWS) division. Polycom will divest EWS to focus its product and technology portfolio on core unified communications and video collaboration solutions. Out of total revenue of $379 million, the revenues from the company’s Enterprise Wireless Solutions (EWS) business were $21 million.
By product line, inclusive of service, consolidated net revenues from continuing operations for Q2 2012 were:
- UC Group Systems of $251.7 million, an increase of 7% year-over-year;
- UC Personal Devices of $42.9 million, a decrease of 3% year-over-year; and
- UC Platform of $63.9 million, an increase of 6% year-over-year.
Our best guess is the Introduction of a new corporate brand identity to underscore Polycom’s transformation to a software-led company means the game-changing products will involve cloud, software and collaboration.
BTW, don’t you think the new logo was Olympics-inspired?
Go Polycom Q2 Results & Promises to Launch Game-Changing Products