ADDING and REPLACING Polycom Reports Second Quarter Results; Sequential Revenue Growth of Seven Percent to $99.4 Million Pro Forma Earnings of Eight Cents Per Share.Business Editors/High-Tech Writers PLEASANTON Pleasanton, city (1990 pop. 50,553), Alameda co., W Calif., a suburb of the San Francisco–Oakland area, in a vineyard and dairy region; inc. 1894. Wine and cheese are produced, and there are publishing and stone-quarrying industries. , Calif.--(BUSINESS WIRE)--July 17, 2003 ADD to BW5609, (CA-POLYCOM) to the text following the first table xxx The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income per share prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The corrected release reads: Polycom Polycom is a manufacturer of teleconferencing and videoconferencing equipment. Their best selling teleconferencing range of systems are called Soundstations. History Reports Second Quarter Results; Sequential One after the other in some consecutive order such as by name or number. Revenue Growth of Seven Percent to $99.4 Million Pro Forma Earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. of Eight Cents Per Share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. Polycom(R), Inc. (Nasdaq:PLCM PLCM Product Life-Cycle Management PLCM public long code mask PLCM Public Land Code Mask ), the world's leader in video and voice conferencing See teleconferencing. , conference bridges, and integrated web collaboration Working together on a project. See collaborative software. solutions, today reported its operating results for the second quarter ended June June: see month. 30, 2003. Second quarter consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net revenues were $99.4 million, compared to $122.2 million recorded for the second quarter of 2002. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income in the second quarter was $8.1 million, or eight cents per diluted share. This compares to pro forma net income of $15.6 million, or 15 cents per diluted share, for the second quarter of 2002. Pro forma financial measures exclude acquisition-related costs, purchased in-process research and development, amortization of purchased intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. , restructure costs, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement, gain (loss) on strategic investments, income tax effect of the preceding adjustments, loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , net of taxes, and loss from sale of discontinued operations, net of taxes. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income for the second quarter of 2003 was $1.6 million, or two cents per diluted share, compared to GAAP net income of $5.6 million, or six cents per diluted share, for the same period last year. For the six months ended June 30, 2003, net revenues were $192.4 million, compared to $254.5 million for the first six months of 2002. Pro forma net income for the period was $9.8 million, or 10 cents per diluted share, compared to $38.4 million, or 38 cents per diluted share for the first six months of 2002. The GAAP net loss for the six months ended June 30, 2003 was $0.8 million, or a one-cent net loss per diluted share, compared to GAAP net income of $20.1 million, or 20 cents per diluted share, for the same period last year. Prior year revenue and pro forma net income figures include certain reclassifications primarily to reflect the effect of discontinued operations associated with the sale of the network access product line, which occurred in January January: see month. of this year. Network access revenue and related expenses, net of taxes, are shown as discontinued operations in the financial statements. The reconciliation of the GAAP statement of operations See Income statement. amounts to the respective pro forma figures, for the three and six months ended June 30, 2003 and 2002 is set forth at the end of this press release. On a product line basis, consolidated net revenues for the second quarter of 2003 were comprised of 58 percent video communications, or $57.6 million; 18 percent network systems, or $17.3 million; 19 percent voice communications, or $19.2 million; and five percent iPower(TM)-related services, or $5.3 million. This compares to the second quarter of 2002, in which consolidated net revenues were comprised of 59 percent video communications, or $72.6 million; 19 percent network systems, or $22.8 million; 17 percent voice communications, or $20.4 million; and five percent iPower-related services, or $6.4 million. "We are pleased with the broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased sequential improvement in end-user (job) end-user - The person who uses a computer application, as opposed to those who developed or support it. The end-user may or may not know anything about computers, how they work, or what to do if something goes wrong. demand for Polycom's unique end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. collaboration solutions," stated Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Hagerty Hagerty refers to:
Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States , make these video, voice, and web collaboration solutions mission-critical in organizations around the world." Hagerty continued, "In addition to the recent sequential improvements in customer demand, Polycom is beginning to realize the benefits of our new, high-touch sales model. With this sales model, Polycom is building complete sales and service relationships with both our private and public sector customers worldwide. We are working in tandem Adv. 1. in tandem - one behind the other; "ride tandem on a bicycle built for two"; "riding horses down the path in tandem" tandem with our channel to deliver the Polycom Office(TM) solution to our end user customers rapidly and cost-effectively-improving their productivity and agility, delivering tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. improvements to their bottom line." "With the sequential revenue and gross margin improvements in the second quarter, Polycom's pro forma operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: grew sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen to 9.5 percent," said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Kourey, senior vice president, finance and administration, and CFO See Chief Financial Officer. . "This significant sequential profitability growth, coupled with an improvement in DSO See CSO. to 45 days, drove our operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. to $22 million for the quarter. With this twenty-first consecutive quarter of positive operating cash flow, Polycom now has a record $530 million in cash and investments and no debt." About Polycom Polycom, Inc. is the world's technology leader of high-quality, easy-to-use video, voice, data and web conferencing A videoconferencing session via the Internet. In order to interact with other participants, attendees use either a Web application or an application downloaded into their client machines. and collaboration solutions. The Polycom Office(TM) is our continued commitment to make distance communications as natural and interactive as being there by providing best-in-class See best-of-class. conferencing solutions that are interoperable The ability for one system to communicate or work with another. See interoperability. , integrated and intuitive to the user. The Polycom Office is based on industry standards and supported by an open architecture that promotes interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. in multi-vendor environments and complements leading network infrastructure platforms. For additional information call 1-800-POLYCOM (765-9266) or +1-408-526-9000, or visit the Polycom website at www.polycom.com. As has been noted on the Company's web site since July July: see month. 8, 2003, Polycom will hold a conference call today at 5:00 p.m. ET/2:00 p.m. PT to discuss its second quarter results. Robert Hagerty, chairman, president and CEO, and Michael Kourey, chief financial officer, will host the conference. You may participate by viewing the webcast at www.polycom.com or, for callers in the US and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , call 800.840.6217; and for callers outside of the US and Canada, call 212.346.6387, with the pass code being Polycom. A replay of the call will also be available through July 24, 2003 for callers in the US and Canada, at 800.633.8284; and for callers outside of the US and Canada, at 402.977.9140. The access number for the replay is 21154644. A replay of the call will also be maintained on our website at www.polycom.com under Investor Relations Investor relations The process by which the corporation communicates with its investors. - Archived Conference Calls for twelve months. Polycom and the Polycom logo are registered trademarks and iPower and The Polycom Office are trademarks of Polycom in the U.S. and various countries.
POLYCOM, INC.
Pro Forma Condensed Consolidated Statements of Operations
Excluding Acquisition-related costs, Purchased in-process R&D,
Amortization of purchased intangibles, Restructure costs,
Litigation settlements, Gain (loss) on strategic investments,
Loss from discontinued operations and Gain (loss) from sale of
discontinued operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
------------------- -------------------
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
--------- --------- --------- ---------
Net revenues $ 99,434 $122,195 $192,354 $254,450
Cost of net revenues 40,301 51,277 78,934 104,759
--------- --------- --------- ---------
Gross profit 59,133 70,918 113,420 149,691
--------- --------- --------- ---------
Operating expenses:
Sales and marketing 24,245 25,531 50,909 48,734
Research and development 17,820 18,403 37,640 37,248
General and administrative 7,583 8,525 15,315 16,318
--------- --------- --------- ---------
Total operating expenses 49,648 52,459 103,864 102,300
--------- --------- --------- ---------
Operating income 9,485 18,459 9,556 47,391
Interest income, net 2,071 2,359 4,504 4,170
Other income (expense), net (430) 333 (624) 366
--------- --------- --------- ---------
Income before provision for
income taxes 11,126 21,151 13,436 51,927
Provision for income taxes 3,004 5,541 3,628 13,488
--------- --------- --------- ---------
Pro forma net income $ 8,122 $ 15,610 $ 9,808 $ 38,439
========= ========= ========= =========
Basic net income per share $ 0.08 $ 0.16 $ 0.10 $ 0.39
========= ========= ========= =========
Diluted net income per share $ 0.08 $ 0.15 $ 0.10 $ 0.38
========= ========= ========= =========
Weighted average shares
outstanding for basic
net income per share 98,940 100,211 99,126 98,834
========= ========= ========= =========
Weighted average shares
outstanding for diluted
net income per share 99,977 101,564 100,004 100,788
========= ========= ========= =========
Use of Pro Forma Financial Information
To supplement our consolidated financial statements presented on a
GAAP basis, Polycom uses pro forma 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 pro forma 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 pro forma 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.
POLYCOM, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
------------------- -------------------
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
--------- --------- --------- ---------
Net revenues $ 99,434 $122,195 $192,354 $254,450
Cost of net revenues 40,301 51,277 78,934 104,759
--------- --------- --------- ---------
Gross profit 59,133 70,918 113,420 149,691
--------- --------- --------- ---------
Operating expenses:
Sales and marketing 24,245 25,531 50,909 48,734
Research and development 17,820 18,403 37,640 37,248
General and administrative 7,583 8,525 15,315 16,318
Acquisition-related costs 115 1,530 188 2,723
Purchased in-process research
and development -- 900 -- 900
Amortization of purchased
intangibles 4,397 4,411 8,795 8,339
Restructure costs 4,326 -- 5,029 --
Litigation settlements 65 -- 65 (257)
--------- --------- --------- ---------
Total operating expenses 58,551 59,300 117,941 114,005
--------- --------- --------- ---------
Operating income (loss) 582 11,618 (4,521) 35,686
Interest income, net 2,071 2,359 4,504 4,170
Gain (loss) on strategic
investments 101 (4,044) (114) (4,627)
Other income (expense), net (430) 333 (624) 366
--------- --------- --------- ---------
Income (loss) from continuing
operations before provision
for (benefit from)
income taxes 2,324 10,266 (755) 35,595
Provision for (benefit from)
income taxes 660 2,641 (178) 9,218
--------- --------- --------- ---------
Income (loss) from continuing
operations 1,664 7,625 (577) 26,377
Loss from discontinued
operations, net of taxes -- (1,992) (676) (6,236)
Gain (loss) from sale of
discontinued operations, net
of taxes (70) -- 427 --
--------- --------- --------- ---------
Net income (loss) $ 1,594 $ 5,633 $ (826) $ 20,141
========= ========= ========= =========
Basic net income (loss) per
share:
Net income (loss) per share
from continuing operations $ 0.02 $ 0.08 $ (0.01) $ 0.26
Loss per share from
discontinued
operations, net -- (0.02) (0.01) (0.06)
Gain (loss) per share from
sale of discontinued
operations, net -- -- 0.01 --
--------- --------- --------- ---------
Basic net income (loss)
per share $ 0.02 $ 0.06 $ (0.01) $ 0.20
========= ========= ========= =========
Diluted net income (loss)
per share:
Net income (loss) per share
from continuing operations $ 0.02 $ 0.08 $ (0.01) $ 0.26
Loss per share from
discontinued
operations, net -- (0.02) (0.01) (0.06)
Gain (loss) per share from
sale of discontinued
operations, net -- -- 0.01 --
--------- --------- --------- ---------
Diluted net income (loss)
per share $ 0.02 $ 0.06 $ (0.01) $ 0.20
========= ========= ========= =========
Weighted average shares
outstanding for basic
net income (loss) per share 98,940 100,211 99,126 98,834
========= ========= ========= =========
Weighted average shares
outstanding for diluted
net income (loss) per share 99,977 101,564 99,126 100,788
========= ========= ========= =========
POLYCOM, INC.
GAAP to Pro Forma Reconciliation
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, 2003 June 30, 2003
-------------------------- --------------------------
GAAP Excluded Pro GAAP Excluded Pro
Forma Forma
-------- -------- -------- -------- -------- --------
Net revenues $ 99,434 $ -- $ 99,434 $192,354 $ -- $192,354
Cost of net
revenues 40,301 -- 40,301 78,934 -- 78,934
-------- -------- -------- -------- -------- --------
Gross profit 59,133 -- 59,133 113,420 -- 113,420
-------- -------- -------- -------- -------- --------
Operating
expenses:
Sales and
marketing 24,245 -- 24,245 50,909 -- 50,909
Research and
development 17,820 -- 17,820 37,640 -- 37,640
General and
admini-
strative 7,583 -- 7,583 15,315 -- 15,315
Acquisition-
related
costs 115 115 -- 188 188 --
Amortization
of purchased
intangibles 4,397 4,397 -- 8,795 8,795 --
Restructure
costs 4,326 4,326 -- 5,029 5,029 --
Litigation
settlements 65 65 -- 65 65 --
-------- -------- -------- -------- -------- --------
Total operating
expenses 58,551 8,903 49,648 117,941 14,077 103,864
-------- -------- -------- -------- -------- --------
Operating
income (loss) 582 (8,903) 9,485 (4,521) (14,077) 9,556
Interest
income, net 2,071 -- 2,071 4,504 -- 4,504
Gain (loss)
on strategic
investments 101 101 -- (114) (114) --
Other expense,
net (430) -- (430) (624) -- (624)
-------- -------- -------- -------- -------- --------
Income (loss)
from
continuing
operations
before
provision for
(benefit from)
income taxes 2,324 (8,802) 11,126 (755) (14,191) 13,436
Provision for
(benefit from)
income taxes 660 (2,344) 3,004 (178) (3,806) 3,628
-------- -------- -------- -------- -------- --------
Income (loss)
from
continuing
operations 1,664 (6,458) 8,122 (577) (10,385) 9,808
Loss from
discontinued
operations,
net of taxes -- -- -- (676) (676) --
Gain (loss)
from sale of
discontinued
operations,
net of taxes (70) (70) -- 427 427 --
-------- -------- -------- -------- -------- --------
Net income
(loss) $ 1,594 $ (6,528)$ 8,122 $ (826)$(10,634)$ 9,808
======== ======== ======== ======== ======== ========
Basic net
income (loss)
per share:
Net income
(loss) per
share from
continuing
operations $ 0.02 $ (0.06)$ 0.08 $ (0.01)$ (0.11)$ 0.10
Loss per
share from
discontinued
operations,
net -- -- -- (0.01) (0.01) --
Gain (loss)
per share
from sale of
discontinued
operations,
net -- -- -- 0.01 0.01 --
-------- -------- -------- -------- -------- --------
Basic net
income (loss)
per share $ 0.02 $ (0.06)$ 0.08 $ (0.01)$ (0.11)$ 0.10
======== ======== ======== ======== ======== ========
Diluted net
income (loss)
per share:
Net income
(loss) per
share from
continuing
operations $ 0.02 $ (0.06)$ 0.08 $ (0.01)$ (0.11)$ 0.10
Loss per
share from
discontinued
operations,
net -- -- -- (0.01) (0.01) --
Gain (loss)
per share
from sale of
discontinued
operations,
net -- -- -- 0.01 0.01 --
-------- -------- -------- -------- -------- --------
Diluted net
income (loss)
per share $ 0.02 $ (0.06)$ 0.08 $ (0.01)$ (0.11)$ 0.10
======== ======== ======== ======== ======== ========
Weighted
average shares
outstanding
for basic
net income
(loss) per
share 98,940 98,940 99,126 99,126
======== ======== ======== ========
Weighted
average shares
outstanding
for diluted
net income
(loss) per
share 99,977 99,977 99,126 100,004
======== ======== ======== ========
POLYCOM, INC.
GAAP to Pro Forma Reconciliation
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, 2003 June 30, 2003
-------------------------- --------------------------
GAAP Excluded Pro GAAP Excluded Pro
Forma Forma
-------- -------- -------- -------- -------- --------
Net revenues $122,195 $ -- $122,195 $254,450 $ -- $254,450
Cost of net
revenues 51,277 -- 51,277 104,759 -- 104,759
-------- -------- -------- -------- -------- --------
Gross profit 70,918 -- 70,918 149,691 -- 149,691
-------- -------- -------- -------- -------- --------
Operating
expenses:
Sales and
marketing 25,531 -- 25,531 48,734 -- 48,734
Research and
development 18,403 -- 18,403 37,248 -- 37,248
General and
admini-
strative 8,525 -- 8,525 16,318 -- 16,318
Acquisition-
related
costs 1,530 1,530 -- 2,723 2,723 --
Purchased in-
process
research and
development 900 900 -- 900 900 --
Amortization
of purchased
intangibles 4,411 4,411 -- 8,339 8,339 --
Litigation
settlement -- -- -- (257) (257) --
-------- -------- -------- -------- -------- --------
Total
operating
expenses 59,300 6,841 52,459 114,005 11,705 102,300
-------- -------- -------- -------- -------- --------
Operating
income 11,618 (6,841) 18,459 35,686 (11,705) 47,391
Interest
income, net 2,359 -- 2,359 4,170 -- 4,170
Loss on
strategic
investments (4,044) (4,044) -- (4,627) (4,627) --
Other income,
net 333 -- 333 366 -- 366
-------- -------- -------- -------- -------- --------
Income from
continuing
operations
before
provision for
income taxes 10,266 (10,885) 21,151 35,595 (16,332) 51,927
Provision for
income taxes 2,641 (2,900) 5,541 9,218 (4,270) 13,488
-------- -------- -------- -------- -------- --------
Income from
continuing
operations 7,625 (7,985) 15,610 26,377 (12,062) 38,439
Loss from
discontinued
operations,
net of taxes (1,992) (1,992) -- (6,236) (6,236) --
-------- -------- -------- -------- -------- --------
Net income $ 5,633 $ (9,977)$ 15,610 $ 20,141 $(18,298)$ 38,439
======== ======== ======== ======== ======== ========
Basic net
income per
share:
Net income
per share
from
continuing
operations $ 0.08 $ (0.08)$ 0.16 $ 0.26 $ (0.13)$ 0.39
Loss per
share from
discontinued
operations,
net (0.02) (0.02) -- (0.06) (0.06) --
-------- -------- -------- -------- -------- --------
Basic net
income per
share $ 0.06 $ (0.10)$ 0.16 $ 0.20 $ (0.19)$ 0.39
======== ======== ======== ======== ======== ========
Diluted net
income per
share:
Net income
per share
from
continuing
operations $ 0.08 $ (0.07)$ 0.15 $ 0.26 $ (0.12)$ 0.38
Loss per
share from
discontinued
operations,
net (0.02) (0.02) -- (0.06) (0.06) --
-------- -------- -------- -------- -------- --------
Diluted net
income per
share $ 0.06 $ (0.09)$ 0.15 $ 0.20 $ (0.18)$ 0.38
======== ======== ======== ======== ======== ========
Weighted
average shares
outstanding
for basic
net income
per share 100,211 100,211 98,834 98,834
======== ======== ======== ========
Weighted
average shares
outstanding
for diluted
net income
per share 101,564 101,564 100,788 100,788
======== ======== ======== ========
POLYCOM, INC.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, Dec. 31,
2003 2002
----------- -----------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $197,364 $155,191
Short-term investments 9,466 38,670
Trade receivables, net 48,659 65,470
Inventories 25,477 32,308
Deferred taxes 28,089 29,787
Prepaid expenses and other current assets 21,114 16,622
----------- -----------
Total current assets 330,169 338,048
Property and equipment, net 28,737 28,428
Long-term investments 322,877 319,147
Goodwill 297,076 300,039
Purchased intangibles, net 24,032 32,827
Deferred taxes 53,475 53,446
Other assets 8,291 4,939
----------- -----------
Total assets $1,064,657 $1,076,874
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 31,548 $ 29,788
Accrued payroll and related liabilities 8,943 7,540
Taxes payable 43,737 44,338
Deferred revenue 16,795 16,950
Other accrued liabilities 28,490 36,519
----------- -----------
Total current liabilities 129,513 135,135
Long-term liabilities 36,254 37,996
----------- -----------
Total liabilities 165,767 173,131
Stockholders' equity 898,890 903,743
----------- -----------
Total liabilities and
stockholders' equity $1,064,657 $1,076,874
=========== ===========
POLYCOM, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended
-------------------
June 30, June 30,
2003 2002
--------- ---------
Cash Flows from operating activities:
Net income (loss) $ (826) $ 20,141
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Gain from sale of discontinued operations,
net of taxes (427) --
Depreciation and amortization 7,763 7,413
Amortization of purchased intangibles 8,795 8,339
Provision for doubtful accounts 521 2,611
Provision for excess and obsolete inventories 1,136 3,883
Tax benefit from exercise of stock options 496 1,941
Loss on strategic investments 114 4,627
Amortization of unearned stock-based
compensation 182 296
Purchase of in-process research and
development -- 900
Changes in assets and liabilities,
net of the effect of acquisitions:
Trade receivables 16,290 532
Inventories 6,722 10,817
Deferred taxes -- 257
Prepaid expenses and other assets (4,149) (5,442)
Accounts payable 1,760 11,137
Taxes payable (846) 4,985
Other accrued liabilities (5,777) (19,766)
--------- ---------
Net cash provided by operating activities 31,754 52,671
--------- ---------
Cash flows from investing activities:
Purchase of property and equipment (8,111) (7,251)
Purchase of licensed technology (3,528) --
Purchases of investments (452,040) (226,310)
Proceeds from sale and maturity of
investments 477,228 80,700
Proceeds from sale of discontinued
operations 1,200 --
Purchase of convertible note receivable (522) --
Net cash received in purchase acquisitions -- 93
--------- ---------
Net cash provided by (used in) investing
activities 14,227 (152,768)
--------- ---------
Cash flows from financing activities:
Proceeds from stock offering, net of
issuance costs -- 237,495
Proceeds from issuance of common stock
under employee option and stock purchase
plans 3,107 4,221
Purchase of treasury stock (6,915) (4,207)
--------- ---------
Net cash provided by (used in) financing
activities (3,808) 237,509
--------- ---------
Net increase in cash and equivalents 42,173 137,412
Cash and cash equivalents, beginning of period 155,191 126,832
--------- ---------
Cash and cash equivalents, end of period $197,364 $264,244
========= =========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion