StockCall Review on Polycom and Plantronics: Systems Software Companies
LONDON, February 20, 2013
LONDON, February 20, 2013 /PRNewswire/ --
Systems software stocks provide good returns with moderate risk profile.
Though the sector currently features optimistic macro environment, the
individual companies face their own unique set of issues. Polycom Inc.
(NASDAQ: PLCM) reported good quarterly results and outlook, but is dealing
with talent management issues. Plantronics Inc. (NYSE: PLT) also reported
strong quarterly results and announced its dividend. These companies need to
be vetted keeping in view their internal environment. Despite the issues,
these companies are performing well and their stocks are expected to follow
suit. StockCall analysts initiated preliminary technical research on Polycom
and Plantronics. These free reports are accessible by signing today at
Polycom Acquires Sentri
Polycom is battling with its talent retention issues. In the recent past, the
company saw four of its executives leaving the shores, the latest being the
departure of its Products & Services head Sudhakar Ramakrishna. The markets
reacted negatively to the news, sending the stock into a tizzy. However, the
company still maintains its leadership position in video collaboration segment
and the stock is expected to recover. The free technical analysis on Polycom
Inc. is available by signing up at
Polycom is still on with its merger and acquisition plans. The company
recently completed the purchase of Sentri, which offers Microsoft product
suites related services. However, the biggest point about the acquisition is
Sentri's portfolio of over 40 video and voice products. This portfolio will
help Polycom in consolidating its lead position in its segment. Polycom is
also pursuing collaboration opportunities as it inked a new deal with Meetrix
to provide cloud-based video collaboration solutions.
Polycom earned $353 million in revenue for its fiscal fourth quarter, up 5
percent sequentially. The company showed revenue improvement across the board.
Its adjusted net income for the quarter stood at 17 cents per share. Polycom
also plans to focus its attention on overseas markets as it derives a quarter
of its revenue from Europe and Asia/Pacific respectively. The stock is down 5
percent this year but it shows signs of recovery.
Plantronics Reports Q3 Results
Plantronics recently announced 10 cents per share in quarterly dividend,
payable on March 11^th. The company's dividend yield stands at about 1
percent. Though Plantronics is not big on dividends, the stock itself is up 10
percent on a YTD basis. The company also reported its quarterly numbers with
$197.4 million in revenue for its fiscal third quarter of the year,
conveniently surpassing consensus estimate of $186.3 million in revenue. Its
EPS at 73 cents per share also exceeded expected 68 cents per share. Register
now to download the free research on Plantronics Inc. at
Plantronics provided robust outlook as well. The company is expected to report
its fourth quarter revenue at $192.3 million while its EPS is likely to be at
69 cents per share. Its full year revenue estimate is at $750.3 million with
EPS of $2.77 per share. The company has consistently performed better than
estimates. It also has robust balance sheet. Its stock is up 14 percent so far
this year and is likely to maintain the momentum.
Polycom is also diversifying its product portfolio and released a number of
new products. These products will help the company to generate new revenue
streams. Overall, the stock is a good investment venue for long- and
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