Video conferencing systems manufacturer Polycom said Tuesday it expects flat-to-higher EPS on higher Q3 revenue as relatively weak U.S. sales growth undercut strength in international markets. The company forecasts that it will post EPS under GAAP rules in the $0.19-0.21 range versus $0.19 a year ago. On a non-GAAP basis, Polycom expects EPS in the $0.33-0.35 range against $0.27 last year. Q3 revenue is projected to rise 36-38% to $235-239 million from $173.2 million a year ago. Analysts had been forecasting EPS of $0.35 on revenue of $244.5 million. "Our results for the quarter were driven by strength in key international markets across our entire product line, offset by less than typical seasonal growth in U.S. sales," said CEO Robert Hagerty. Polycom will report Q3 results on October 17.
Sources: MarketWatch, Reuters
Commentary: Polycom To Benefit From Online Video Growth • The Risk/Return Tradeoff For Technology Stocks
Stocks/ETFs to watch: PLCM. Competitors: ASUR, SNE. ETFs: IWO, UKK, UWM
Earnings call transcript: Polycom Q2 2007
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