When Cisco Systems
Well, Polycom's first quarterly report since Cisco swallowed Tandberg is in the books, and the results tell a different story. Polycom has been busy signing distribution partnerships and creating cross-functional products with multinational giants like IBM
The big, bad Cisco monster apparently isn't scaring customers away from Polycom at all.
The company saw 3% year-over-year revenue growth in the fourth quarter to $268 million, with a $68 million backlog of orders. Meanwhile, non-GAAP earnings fell from $0.42 per share a year ago to $0.33 per share this time around. The numbers hardly inspire confidence at the moment, but the stream of partnership and customer announcement does.
Depending on exactly how you define the telepresence market -- screen sizes, resolutions, and other technical details do make a difference here -- Polycom is either the top dog or top runner-up in this emerging field, a market that Cisco saw fit to spend $3.4 billion to take a stranglehold on. I think the evidence is clear: Cisco and Tandberg are not killing Polycom with their hook-up, and the market is big enough to support several cases of rapid growth.
What do you think of Polycom's results? Click on over to CAPS and rate the stock accordingly.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. Polycom is a Motley Fool Rule Breakers selection. Motley Fool Options has recommended a diagonal call position on Microsoft, and the stock is a Motley Fool Inside Value pick. Try any of our Foolish newsletters today, free for 30 days. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.