Polycom (Nasdaq: PLCM) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Polycom met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Polycom booked revenue of $358.5 million. The 14 analysts polled by S&P Capital IQ anticipated sales of $360.9 million on the same basis. GAAP reported sales were 1.9% lower than the prior-year quarter's $365.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.22. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.20 per share. GAAP EPS of $0.03 for Q2 were 81% lower than the prior-year quarter's $0.16 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 59.7%, 70 basis points worse than the prior-year quarter. Operating margin was 5.6%, 580 basis points worse than the prior-year quarter. Net margin was 1.8%, 600 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $366.4 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $1.48 billion. The average EPS estimate is $0.67.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 201 members out of 221 rating the stock outperform, and 20 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Polycom a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Polycom is outperform, with an average price target of $14.42.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Polycom. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.