Polycom Q1 revenues, profit slip

Polycom reported first-quarter earnings Wednesday showing declines in revenues and income compared to Q1 2008, but strong increases in telepresence and systems revenues on a year-over-year basis. Polycom reported $225.4 million in net revenues for the first quarter of 2009, down 13 percent from the $258.9 million in revenues the company reported for Q1 2008. The company's 2009 first-quarter GAAP net income was $8 million, compared to $14.2 million in the same quarter in 2008.

Polycom CEO Robert Hagerty said the economic environment was to blame for the dip in revenues and earnings, but that the company's core business drivers remained strong. He touted 45 percent year-over-year growth in telepresence solutions and said new product launches would help expand the company's market opportunity.

Polycom CFO Michael Kourey said the company has adjusted its cost structure to maintain operating margins in the face of slipping revenue. Kourey said Polycom remains in very strong financial shape, as it posted its 45^th consecutive quarter of positive operating cash flow, and has $338.7 million in cash and investments and no debt. 

For more:
- see the press release here 

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