Polycom, Inc. (Nasdaq: PLCM) today reported first quarter 2014 revenues of $329 million, non-GAAP net income of $26 million and non-GAAP earnings per diluted share of 18 cents. GAAP net loss for the first quarter was $4 million, or 3 cents per share. A reconciliation of GAAP to non-GAAP results is provided in the tables at the end of this press release.
“We are successfully executing on our goal to improve operating performance,” said Peter Leav, Polycom President and Chief Executive Officer. “Future earnings growth at Polycom will be driven by improvements in processes across the organization, operational cost containment, and the pursuit of profitable revenue growth.”
“Operating margins and earnings per share were better than expected as a result of strong execution in the first quarter,” said Laura Durr, Chief Accounting Officer and Interim Chief Financial Officer.
On a comparative basis, consolidated financial results were:
| ($ in millions, except per share data) | Q1 2014 | Q4 2013 | Q1 2013 | Year- | ||||||||||||||
| Revenues | $ | 328.5 | $ | 347.9 | $ | 338.8 | -3 | % | ||||||||||
| Non-GAAP Net Income | $ | 26.1 | $ | 25.4 | $ | 23.3 | 12 | % | ||||||||||
| Non-GAAP EPS | $ | 0.18 | $ | 0.16 | $ | 0.13 | 38 | % | ||||||||||
| GAAP Net Income (Loss) | $ | (4.0 | ) | $ | (2.0 | ) | $ | 2.6 | -254 | % | ||||||||
| GAAP EPS | $ | (0.03 | ) | $ | (0.01 | ) | $ | 0.01 | -400 | % | ||||||||
On a geographic basis, consolidated revenues were comprised of:
| ($ in millions) | Q1 2014 | Q4 2013 | Q1 2013 | Year-Over- | |||||||||||
| Americas | $ | 163.1 | $ | 170.6 | $ | 171.0 | -5% | ||||||||
| % of revenues | 50% | 49% | 51% | ||||||||||||
| Europe, Middle East & Africa (EMEA) | 89.0 | 89.2 | 89.1 | 0% | |||||||||||
| % of revenues | 27% | 26% | 26% | ||||||||||||
| Asia Pacific | 76.4 | 88.1 | 78.7 | -3% | |||||||||||
| % of revenues | 23% | 25% | 23% | ||||||||||||
| Totals * | $ | 328.5 | $ | 347.9 | $ | 338.8 | -3% | ||||||||
| * may not foot due to rounding | |||||||||||||||
By product category, inclusive of its service component, consolidated revenues were comprised of:
| ($ in millions) | Q1 2014 | Q4 2013 | Q1 2013 | Year-Over- | ||||||||
| UC Group Systems | $ 213.4 | $ 218.1 | $ 232.4 | -8% | ||||||||
| % of revenues | 65% | 63% | 69% | |||||||||
| UC Personal Devices | 56.5 | 62.1 | 49.3 | 15% | ||||||||
| % of revenues | 17% | 18% | 15% | |||||||||
| UC Platform | 58.7 | 67.7 | 57.1 | 3% | ||||||||
| % of revenues | 18% | 19% | 19% | |||||||||
| Totals * | $ 328.5 | $ 347.9 | $ 338.8 | -3% | ||||||||
| * may not foot due to rounding | ||||||||||||
In Q1 2014, Polycom generated a total of $19 million in operating cash flow. Operating cash flow on a trailing 12 month basis was $138 million. Cash and investments at the end of Q1 2014 totaled $596 million. Net of existing debt, cash and investments at the end of Q1 2014 totaled $349 million.
Earnings Call Details
Polycom will hold a conference call today, April 23, 2014, at 5:00 p.m. ET/2:00 p.m. PT to discuss these first quarter 2014 financial results. You may participate by listening to the webcast at www.polycom.com/investors or, for callers in the U.S. and Canada, you may participate by calling 1.800.926.7713 and for callers outside of the U.S. and Canada, by calling 1.212.231.2930. The pass code for the call is “Polycom.” A replay of the call will also be available at www.polycom.com or, for callers in the U.S. and Canada, at 1.800.633.8284 and, for callers outside of the U.S. and Canada, at 1.402.977.9140. The access number for the replay is 21713337. A replay of the call will be available on www.polycom.com for at least three months.
Forward Looking Statements and Risk Factors
This release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 regarding improved operating performance, earnings growth, process improvements, operational cost containment and profitable revenue growth. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of competition on our product sales and for our customers and partners and any resulting loss of business; the impact of increased competition due to consolidation in our industry or competition from companies that are larger or that have greater resources than we do; potential fluctuations in results and future growth rates; risks associated with global economic conditions and external market factors; the market acceptance of our products and changing market demands, including demands for differing technologies or product and services offerings; our ability to successfully implement process improvements and cost containment initiatives; changes to our strategic areas of focus; our ability to successfully integrate our acquisitions into our business; possible delays in the development, availability and shipment of new products due to engineering, manufacturing or other delays; increasing costs and differing uses of capital; changes in key personnel that may cause disruption to the business; the impact of restructuring actions; and the impact of global conflicts that may adversely impact our business. Many of these risks and uncertainties are discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, and in other reports filed by Polycom with the SEC. Polycom disclaims any intent or obligations to update these forward-looking statements.
Polycom reserves the right to modify future product plans at any time. Products and/or related specifications referenced in this press release are not guaranteed and will be delivered on a when and if available basis.
GAAP to non-GAAP Reconciliation
To supplement our consolidated financial statements presented on a GAAP basis, Polycom uses non-GAAP measures of operating results, net income and income per share, which are adjusted to exclude certain costs, expenses, gains and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Polycom's underlying operational results and trends and our marketplace performance. For example, the non-GAAP results are an indication of our baseline performance before gains, losses, or other charges that are considered by management to be outside of our core operating results. In addition, these adjusted non-GAAP results are among the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or diluted net income per share prepared in accordance with generally accepted accounting principles in the United States.
About Polycom
Polycom helps organizations unleash the power of human collaboration. More than 400,000 companies and institutions worldwide defy distance with secure video, voice and content solutions from Polycom to increase productivity, speed time to market, provide better customer service, expand education and save lives. Polycom and its global partner ecosystem provide flexible collaboration solutions for any environment that deliver the best user experience, the broadest multi-vendor interoperability and unmatched investment protection. Visit www.polycom.com or connect with us on Twitter, Facebook and LinkedIn to learn more.
© 2014 Polycom, Inc. All rights reserved. POLYCOM®, the Polycom logo, and the names and marks associated with Polycom’s products are trademarks and/or service marks of Polycom, Inc. and are registered and/or common law marks in the United States and various other countries. All other trademarks are property of their respective owners.
| POLYCOM, INC. | |||||||||
| Condensed Consolidated Statements of Operations | |||||||||
| (In thousands, except per share amounts) | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| March 31, | March 31, | ||||||||
| 2014 | 2013 | ||||||||
| Revenues: | |||||||||
| Product revenues | $ | 231,509 | $ | 246,129 | |||||
| Service revenues | 97,015 | 92,623 | |||||||
| Total revenues | 328,524 | 338,752 | |||||||
| Cost of revenues: | |||||||||
| Cost of product revenues | 97,636 | 101,878 | |||||||
| Cost of service revenues | 38,903 | 37,777 | |||||||
| Total cost of revenues | 136,539 | 139,655 | |||||||
| Gross profit | 191,985 | 199,097 | |||||||
| Operating expenses: | |||||||||
| Sales and marketing | 93,968 | 108,715 | |||||||
| Research and development | 48,147 | 55,935 | |||||||
| General and administrative | 23,793 | 23,694 | |||||||
| Amortization of purchased intangibles | 2,492 | 2,502 | |||||||
| Restructuring costs | 30,343 | 5,423 | |||||||
| Transaction-related costs | 156 | 3,323 | |||||||
| Total operating expenses | 198,899 | 199,592 | |||||||
| Operating loss | (6,914 | ) | (495 | ) | |||||
| Interest expense | (1,474 | ) | (407 | ) | |||||
| Other income (expense) | 779 | (352 | ) | ||||||
| Interest and other income (expense), net | (695 | ) | (759 | ) | |||||
| Loss from continuing operations before benefit for income taxes | (7,609 | ) | (1,254 | ) | |||||
| Benefit from income taxes | (3,618 | ) | (3,371 | ) | |||||
| Loss from continuing operations | (3,991 | ) | 2,117 | ||||||
| Gain from sale of discontinued operations, net of taxes | - | 459 | |||||||
| Net income (loss) | $ | (3,991 | ) | $ | 2,576 | ||||
Basic and diluted net income (loss) per share: | |||||||||
| Net income (loss) per share from continuing operations | $ | (0.03 | ) | $ | 0.01 | ||||
| Gain per share from sale of discontinued operations, net of taxes | $ | - | $ | - | |||||
| Net income (loss) per share from discontinued operations, net of taxes | $ | - | $ | - | |||||
Basic and diluted net income (loss) per share | $ | (0.03 | ) | $ | 0.01 | ||||
| Number of shares used in computation of net income (loss) per share: | |||||||||
| Basic | 136,795 | 176,079 | |||||||
| Diluted | 136,795 | 179,140 | |||||||
Note: | |||
Earnings per share amounts for continuing operations, discontinued operations and net income (loss), as presented above, are calculated individually and may not sum due to rounding differences. * | |||
| * | As a result of the net loss from continuing operations for all periods presented, all potentially issuable common shares have been excluded from the diluted shares used in the computation of net income (loss) per share from continuing operations as their effect is anti-dilutive. | ||
| POLYCOM, INC. | ||||||||
| Reconciliation of GAAP to Non-GAAP Net Income (Loss) | ||||||||
| (In thousands, except per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | March 31, | |||||||
| 2014 | 2013 | |||||||
| GAAP net income (loss) | $ | (3,991 | ) | $ | 2,576 | |||
| Gain from sale of discontinued operations, net of taxes | - | (459 | ) | |||||
| Amortization of purchased intangibles | 3,333 | 3,750 | ||||||
| Restructuring costs | 30,343 | 5,423 | ||||||
| Transaction-related expenses | 156 | 3,323 | ||||||
| Stock-based compensation expense | 5,647 | 17,771 | ||||||
| Effect of stock-based compensation on warranty rates | 129 | 157 | ||||||
| Costs associated with CEO separation and related SEC investigation | 610 | - | ||||||
| Income tax effect of non-GAAP exclusions | (10,140 | ) | (9,205 | ) | ||||
| Non-GAAP net income | $ | 26,087 | $ | 23,336 | ||||
| GAAP net income (loss) per share | ||||||||
| Basic | $ | (0.03 | ) | $ | 0.01 | |||
| Diluted | $ | (0.03 | ) | $ | 0.01 | |||
| Non-GAAP net income per share | ||||||||
| Basic | $ | 0.19 | $ | 0.13 | ||||
| Diluted | $ | 0.18 | $ | 0.13 | ||||
| Number of shares used in computation of GAAP net income (loss) per share: | ||||||||
| Basic and diluted | 136,795 | 176,079 | ||||||
| Number of shares used in computation of non-GAAP net income per share: | ||||||||
| Basic | 136,795 | 176,079 | ||||||
| Diluted | 142,165 | 179,140 | ||||||
| Note: As a result of the GAAP net loss from continuing operations for all periods presented, all potentially issuable common shares have been excluded from the diluted shares used in the computation of net income (loss) per share from continuing operations as their effect is anti-dilutive. | ||||||||
| POLYCOM, INC. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| March 31, | December 31, | |||||
| 2014 | 2013 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 380,214 | $ | 392,629 | ||
| Short-term investments | 149,890 | 134,684 | ||||
| Trade receivables, net | 184,239 | 183,369 | ||||
| Inventories | 103,280 | 103,309 | ||||
| Deferred taxes | 37,079 | 37,085 | ||||
| Prepaid expenses and other current assets | 58,982 | 50,352 | ||||
| Total current assets | 913,684 | 901,428 | ||||
| Property and equipment, net | 109,146 | 115,157 | ||||
| Long-term investments | 65,835 | 56,372 | ||||
| Goodwill and purchased intangibles, net | 593,340 | 596,918 | ||||
| Deferred taxes | 44,425 | 51,398 | ||||
| Other assets | 27,654 | 27,757 | ||||
| Total assets | $ | 1,754,084 | $ | 1,749,030 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 92,616 | $ | 84,640 | ||
| Accrued payroll and related liabilities | 32,051 | 40,162 | ||||
| Taxes payable | 3,797 | 5,389 | ||||
| Deferred revenue | 172,703 | 172,408 | ||||
| Current portion of long-term debt | 6,250 | 6,250 | ||||
| Other accrued liabilities | 76,841 | 77,744 | ||||
| Total current liabilities | 384,258 | 386,593 | ||||
| Non-current liabilities | ||||||
| Long-term deferred revenue | 86,078 | 87,467 | ||||
| Taxes payable | 12,553 | 12,419 | ||||
| Deferred taxes | 150 | 149 | ||||
| Long-term debt | 240,625 | 242,188 | ||||
| Other non-current liabilities | 50,204 | 43,849 | ||||
| Total liabilities | 773,868 | 772,665 | ||||
| Stockholders' equity | 980,216 | 976,365 | ||||
| Total liabilities and stockholders' equity | $ | 1,754,084 | $ | 1,749,030 | ||
| POLYCOM, INC. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | March 31, | |||||||
| 2014 | 2013 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (3,991 | ) | $ | 2,576 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 14,533 | 16,430 | ||||||
| Amortization of purchased intangibles | 3,352 | 3,768 | ||||||
| Amortization of software development costs | 288 | - | ||||||
| Amortization of debt issuance costs | 134 | - | ||||||
| Amortization of discounts and premiums on investments, net | 442 | 386 | ||||||
| Write-down of excess and obsolete inventories | 1,781 | 2,934 | ||||||
| Stock-based compensation expense | 5,647 | 17,771 | ||||||
| Excess tax benefits from stock-based compensation expense | (1,695 | ) | (155 | ) | ||||
| Loss on disposal of property and equipment | 3,685 | 1,206 | ||||||
| Gain from sale of discontinued operations, net of tax | - | (459 | ) | |||||
Changes in assets and liabilities, net of effects of acquisitions: | ||||||||
| Trade receivables | (870 | ) | 17,179 | |||||
| Inventories | (1,752 | ) | (525 | ) | ||||
| Deferred taxes | (1,762 | ) | 1,994 | |||||
| Prepaid expenses and other assets | (8,623 | ) | (4,530 | ) | ||||
| Accounts payable | 6,750 | 7,857 | ||||||
| Taxes payable | 4,936 | (1,681 | ) | |||||
| Other accrued liabilities and deferred revenue | (3,761 | ) | (15,351 | ) | ||||
| Net cash provided by operating activities | 19,094 | 49,400 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (10,929 | ) | (12,757 | ) | ||||
| Capitalized software development costs for products to be sold | (1,073 | ) | - | |||||
| Purchases of investments | (90,663 | ) | (55,754 | ) | ||||
| Proceeds from sale of investments | 30,114 | 9,227 | ||||||
| Proceeds from maturity of investments | 35,430 | 68,136 | ||||||
| Net cash received from sale of discontinued operations | - | 556 | ||||||
| Net cash paid in purchase acquisitions | - | (8,350 | ) | |||||
| Net cash provided by (used in) investing activities | (37,121 | ) | 1,058 | |||||
| Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock under employee option and stock purchase plans | 13,295 | 13,206 | ||||||
| Payments on debt | (1,562 | ) | - | |||||
| Purchase and retirement of common stock | (7,816 | ) | (38,041 | ) | ||||
| Excess tax benefits from stock-based compensation expense | 1,695 | 155 | ||||||
| Net cash provided by (used in) financing activities | 5,612 | (24,680 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | (12,415 | ) | 25,778 | |||||
| Cash and cash equivalents, beginning of period | 392,629 | 477,073 | ||||||
| Cash and cash equivalents, end of period | $ | 380,214 | $ | 502,851 | ||||
| Certain prior period amounts have also been reclassified to conform to the current period presentation. | ||||||||
| POLYCOM, INC. | |||||||||||||
| Selected Summary Data | |||||||||||||
| (In millions except per share amounts and headcount) | |||||||||||||
| (Unaudited) | |||||||||||||
| March 31, | December 31, | March 31, | |||||||||||
| 2014 | 2013 | 2013 | |||||||||||
| Balance Sheet Highlights | |||||||||||||
| Cash and investments | $ | 596 | $ | 584 | $ | 728 | |||||||
| Number of shares outstanding | 138 | 135 | 175 | ||||||||||
| Cash and investments per share | $ | 4.31 | $ | 4.32 | $ | 4.17 | |||||||
| Debt | $ | 247 | $ | 248 | $ | - | |||||||
| Operating cash flow - quarterly | $ | 19 | $ | 50 | $ | 49 | |||||||
| Operating cash flow - trailing 12 months | $ | 138 | $ | 168 | $ | 204 | |||||||
| DSO (Days Sales Outstanding) | 51 | 48 | 48 | ||||||||||
| Inventory turns - GAAP | 5.3 | 5.8 | 5.7 | ||||||||||
| Inventory turns - non-GAAP | 5.2 | 5.5 | 5.6 | ||||||||||
| Deferred revenue | $ | 259 | $ | 260 | $ | 253 | |||||||
| Share repurchases: | |||||||||||||
| Quarter-to-date share purchases - shares | - | 35.4 | 3.4 | ||||||||||
| Quarter-to-date share repurchases - dollars | $ | - | $ | 400 | $ | 34 | |||||||
| Year-to-date share purchases - shares | - | 45 | 3.4 | ||||||||||
| Year-to-date share repurchases - dollars | $ | - | $ | 502 | $ | 34 | |||||||
| Remaining authorization for share repurchases (1) | $ | - | $ | - | $ | 39 | |||||||
| Ending headcount | 3,578 | 3,774 | 3,800 | ||||||||||
| For the three months ended | |||||||||||||
| March 31, | December 31, | March 31, | |||||||||||
| 2014 | 2013 | 2013 | |||||||||||
| Income Statement Highlights | |||||||||||||
| GAAP: | |||||||||||||
| Revenues | $ | 329 | $ | 348 | $ | 339 | |||||||
| Gross margin | 58.4 | % | 56.6 | % | 58.8 | % | |||||||
| Operating expenses | $ | 199 | $ | 197 | $ | 200 | |||||||
| Operating margin | (2.1 | %) | (0.1 | %) | (0.1 | %) | |||||||
| Diluted EPS | $ | (0.03 | ) | $ | (0.01 | ) | $ | 0.01 | |||||
| Non-GAAP: | |||||||||||||
| Revenues | $ | 329 | $ | 348 | $ | 339 | |||||||
| Gross margin | 59.2 | % | 58.8 | % | 59.9 | % | |||||||
| Operating expenses | $ | 161 | $ | 171 | $ | 173 | |||||||
| Operating margin | 10.1 | % | 9.8 | % | 8.8 | % | |||||||
| Diluted EPS | $ | 0.18 | $ | 0.16 | $ | 0.13 | |||||||
| 1) | Polycom is not obligated to purchase any specific number of shares under its Share Repurchase Program and the program may be modified, suspended or discontinued at any time. | ||||||||||||
| POLYCOM, INC. | ||||||||
| Reconciliations of GAAP Measures to Non-GAAP Measures | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | March 31, | |||||||
| 2014 | 2013 | |||||||
| GAAP cost of revenues used in inventory turns | $ | 136,539 | $ | 139,655 | ||||
| Stock-based compensation expense | (1,601 | ) | (2,337 | ) | ||||
| Effect of stock-based compensation expense on warranty rates | (129 | ) | (157 | ) | ||||
| Amortization of purchased intangibles | (841 | ) | (1,248 | ) | ||||
| Non-GAAP cost of revenues used in inventory turns | $ | 133,968 | $ | 135,913 | ||||
| GAAP gross profit | $ | 191,985 | $ | 199,097 | ||||
| Stock-based compensation expense | 1,601 | 2,337 | ||||||
| Effect of stock-based compensation expense on warranty rates | 129 | 157 | ||||||
| Amortization of purchased intangibles | 841 | 1,248 | ||||||
| Non-GAAP gross profit | $ | 194,556 | $ | 202,839 | ||||
| Non-GAAP gross margin | 59.2 | % | 59.9 | % | ||||
| GAAP sales and marketing expense | $ | 93,968 | $ | 108,715 | ||||
| Stock-based compensation expense | (391 | ) | (6,636 | ) | ||||
| Non-GAAP sales and marketing expense | $ | 93,577 | $ | 102,079 | ||||
| Non-GAAP sales and marketing expense as percent of revenues | 28.5 | % | 30.1 | % | ||||
| GAAP research and development expense | $ | 48,147 | $ | 55,935 | ||||
| Stock-based compensation expense | (1,042 | ) | (4,721 | ) | ||||
| Non-GAAP research and development expense | $ | 47,105 | $ | 51,214 | ||||
| Non-GAAP research and development expense as percent of revenues | 14.3 | % | 15.1 | % | ||||
| GAAP general and administrative expense | $ | 23,793 | $ | 23,694 | ||||
| Stock-based compensation expense | (2,613 | ) | (4,077 | ) | ||||
| Costs associated with CEO separation and related SEC investigation | (610 | ) | - | |||||
| Non-GAAP general and administrative expense | $ | 20,570 | $ | 19,617 | ||||
| Non-GAAP general and administrative expense as percent of revenues | 6.3 | % | 5.8 | % | ||||
| GAAP total operating expenses | $ | 198,899 | $ | 199,592 | ||||
| Stock-based compensation expense | (4,046 | ) | (15,434 | ) | ||||
| Amortization of purchased intangibles | (2,492 | ) | (2,502 | ) | ||||
| Restructuring costs | (30,343 | ) | (5,423 | ) | ||||
| Transaction-related expenses | (156 | ) | (3,323 | ) | ||||
| Costs associated with CEO separation and related SEC investigation | (610 | ) | - | |||||
| Non-GAAP total operating expenses | $ | 161,252 | $ | 172,910 | ||||
| Non-GAAP total operating expenses as percent of revenues | 49.1 | % | 51.0 | % | ||||
| GAAP operating loss | $ | (6,914 | ) | $ | (495 | ) | ||
| Stock-based compensation expense | 5,647 | 17,771 | ||||||
| Effect of stock-based compensation expense on warranty rates | 129 | 157 | ||||||
| Amortization of purchased intangibles | 3,333 | 3,750 | ||||||
| Restructuring costs | 30,343 | 5,423 | ||||||
| Transaction-related expenses | 156 | 3,323 | ||||||
| Costs associated with CEO separation and related SEC investigation | 610 | - | ||||||
| Non-GAAP operating income | $ | 33,304 | $ | 29,929 | ||||
| Non-GAAP operating margin | 10.1 | % | 8.8 | % | ||||
| POLYCOM, INC. | ||||||
| Summary of Stock-Based Compensation Expense | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| Three Months Ended | ||||||
| March 31, | March 31, | |||||
| 2014 | 2013 | |||||
| Cost of product revenues | $ | 640 | $ | 861 | ||
| Cost of service revenues | 961 | $ | 1,476 | |||
| Stock-based compensation expense in total cost of revenues | 1,601 | 2,337 | ||||
| Sales and marketing | 391 | 6,636 | ||||
| Research and development | 1,042 | 4,721 | ||||
| General and administrative | 2,613 | 4,077 | ||||
| Stock-based compensation expense in operating expenses | 4,046 | 15,434 | ||||
| Total stock-based compensation expense | $ | 5,647 | $ | 17,771 | ||
Contacts:
Investor Contact:
Laura Graves, 1-408-586-4271
laura.graves@polycom.com
Press
Contact:
Ryan Batty, 1-408-586-4467
ryan.batty@polycom.com
