Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Polycom (NASDAQ:PLCM) have fallen by 13% today. Yesterday, the company's CEO resigned abruptly, which came amid allegations of some "irregularities" in the former exec's expense reports. That, along with with some disappointing guidance in last afternoon's earnings report, has sent analysts scurrying from the stock.

So what: Polycom's revenue of $345.2 million beat the $341.4 million consensus, and earnings of $0.15 per share were $0.01 better than the consensus as well. However, guidance of $330 million to $340 million for the third quarter was well below the $355.5 million consensus, as was the $0.10 to $0.12 adjusted EPS guidance, which undershot the $0.16 per share analyst consensus.

In the aftermath, RBC analyst Mark Sue downgraded Polycom to sell status, citing "mismanaged and inconsistent execution" for the company's declining margins and the unexpected departure of former CEO Andrew Miller as reasons for his new price target of $10. However, he also noted that the company's strong cash position could make it a target of activist investors.

Now what: It's tough to say where Polycom will go from here with this uncertainty on the horizon in terms of both growth and executive change. However, falling revenue and earnings don't provide investors with any particular reason for optimism. I'd sit on the sidelines for the time being while the company works through its problems.

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