Polycom CEO Andrew Miller Resigns; Q2 Profit Declines, But Results Beat View

(RTTNews) - Video-conferencing equipment maker Polycom, Inc. (PLCM) said Tuesday that Andrew Miller resigned as chief executive officer, president and a member of the company's board on July 19. The company named Chairman Kevin Parker as interim CEO. Shares of the company declined almost 7 percent in extended trades.

Polycom also reported a 16 percent decline in profit for the second quarter on lower revenues. However, both revenue and earnings per share beat analysts' estimates.

Miller's resignation came after the audit committee of Polycom's board found certain irregularities in his expense submissions, for which Miller accepted responsibility. Polycom noted that the amounts involved did not have a material impact on the company's current or previously reported financial statements for any period, nor did they involve any other employees.

Kevin Parker, Polycom's interim President and CEO said, "Andy Miller's resignation under these circumstances is disappointing and should not be viewed as a reflection of the financial integrity of the company, the strength of our team or our plans for the future."

Parker has served on the Polycom board since 2005, and is currently a Managing Principal at Bridge Growth Partners, LLC.

Polycom's second-quarter net income was $5.30 million or $0.03 per share, down from $6.28 million or $0.04 per share in the same period last year.

Adjusted net income for the quarter was $25.88 million or $0.15 per share, compared to $38.65 million or $0.22 per share in the prior-year quarter. On average, fifteen analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter decreased 4 percent to $345.23 million from $358.50 million in the prior year, while analysts had a consensus revenue estimate of $341.43 million for the quarter.

Gross margin declined to 58.4 percent from 59.7 percent in the same period last year. However, operating margin increased to 1.8 percent from 1.0 percent in the year-ago period.

Segment wise, UC Group Systems revenues for the quarter declined 7 percent to $233.0 million and UC Platform revenues decreased 4 percent to $61.4 million. UC Personal Devices revenues grew 18 percent to $50.8 million.

PLCM closed Tuesday's regular trading session at $11.18, down $0.47 or 4.03 percent on a volume of 2.76 million shares. In after-hours, the stock further declined $0.78 or 6.98 percent to $10.40.