Polycom a Hold, Pre-Earnings - Analyst Blog
Polycom (
PLCM) is a leading provider of voice/video conferencing solutions. The company is expected to report results at the close of business on October 15th.
Business enterprises on a global basis are facing restrictive travel budgets as economic weakness is evident. Under this scenario, Polycom's high-definition telepresence solutions have generated impressive growth in an increasingly interactive world. However, reduction in sales of the company's high-margin Network Systems products and intensifying competition in this segment remain concerning.
Beyond macroeconomic demand factors, the company's balance sheet is capable of supporting initiatives for new ventures. We believe robust market demand for online voice/video collaborative solutions and strong business relationships with several large companies are considered enablers for the company's long-term prospects. We maintain our Hold rating ahead of the company's upcoming earnings report.
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