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Press release Box-ID: 360578

Polycom Germany GmbH Am Söldnermoos 17 85399 Hallbergmoos, Germany http://www.polycom.de
Contact Ms Eva Hildebrandt +49 89 41776114
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Polycom Germany GmbH

Polycom Reports Second Quarter 2010 Earnings

Q2 Revenue Growth of 28 Percent Year-over-Year to a Record $295 Million

(PresseBox) ( PLEASANTON, U.S., )
Polycom, Inc. (Nasdaq: PLCM), a global leader in telepresence, video and voice communications solutions, today reported its earnings for the second quarter ended June 30, 2010.

Second quarter 2010 consolidated net revenues were a record $295 million, compared to $231 million for the second quarter of 2009. GAAP net income for the second quarter of 2010 was $13 million, or 14 cents per diluted share, compared to $15 million, or 18 cents per diluted share, for the same period last year. Non-GAAP net income for the second quarter of 2010 was $30 million, or 34 cents per diluted share. This compares to Non-GAAP net income of $24 million, or 29 cents per diluted share, for the second quarter of 2009.

For the six months ended June 30, 2010, net revenues were $571 million, compared to $456 million for the first six months of 2009. GAAP net income for the six months ended June 30, 2010 was $18 million, or 21 cents per diluted share, compared to GAAP net income of $23 million, or 28 cents per diluted share, for the same period last year. Non-GAAP net income for the period was $55 million, or 63 cents per diluted share, compared to $47 million, or 55 cents per diluted share, for the first six months of 2009.

The reconciliation between GAAP net income and Non-GAAP net income is provided in the tables at the end of this release.

On a product line basis, consolidated net revenues for the second quarter of 2010 were comprised of:

- 67 percent video solutions, or $197 million (53 percent video communications, or $157 million, and 14 percent network systems, or $40 million); and
- 33 percent voice communications, or $98 million.

On a product line basis, consolidated net revenues for the second quarter of 2009 were comprised of:

- 70 percent video solutions, or $162 million (56 percent video communications, or $129 million, and 14 percent network systems, or $33 million); and
- 30 percent voice communications, or $69 million.

"We generated record revenues and growth accelerated in the second quarter, which I believe validates Polycom's strategic investments and confirms that our gotomarket strategy and innovative solutions are aligned with our customers and partners," said Andrew Miller, Polycom president and CEO. "The Polycom Open Collaboration Network, which includes other technology leaders such as Microsoft, IBM, and HP, is already driving significant revenues for our company by providing a beautifully integrated solution for our enterprise and public sector customers. We are also gaining traction with our service provider partners, as cloudbased delivery is increasingly being chosen by enterprises and other customers looking to increase their output and productivity through businesstobusiness unified collaboration solutions. As a result, we believe the network effect for video collaboration is becoming a reality, enabling a further extension of our solutions into smalltomedium businesses and, over time, into consumer and mobility."

"We generated significant, broadbased growth across our theatres globally, driven by record levels of customer demand and strength in the emerging markets. Importantly, we continued to experience sales productivity gains, which contributed to our revenue ramp and further improvements in our operating margin. The strategic investment plan that we outlined over the last three quarters continues to yield betterthanplanned results through our gotomarket focus, breakthrough innovations, and strategic partnerships. We believe we are well positioned to continue capitalising on what is proving to be an incredible market opportunity by leveraging the best development and sales engine in the industry. I am confident that we can continue to deliver strong growth, consistent market gains, and expanding operating margins,” concluded Miller.

"In the second quarter, revenue growth accelerated, both sequentially and yearoveryear," said Michael Kourey, Polycom executive vice president, finance and administration, and CFO. "This drove our strong operating performance and, coupled with continued improvements in working capital management, we generated second quarter positive operating cash flow of $40 million-Polycom's 50th consecutive quarter of positive operating cash flow. We exited the second quarter with $485 million in cash and investments and no debt."

Polycom Germany GmbH

Polycom, Inc. (Nasdaq: PLCM) is a global leader in telepresence, video, and voice solutions and a visionary in communications that empower people to connect and collaborate everywhere. Please visit www.polycom.com for more information or connect with Polycom on Twitter, Facebook, and LinkedIn.

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The publisher indicated in each case is solely responsible for the press releases above, the event or job offer displayed, and the image and sound material used (see company info when clicking on image/message title or company info right column). As a rule, the publisher is also the author of the press releases and the attached image, sound and information material. The use of information published here is generally free of charge for personal information and editorial processing. Please clarify any copyright issues with the stated publisher before further use. In case of publication, please send a specimen copy to service@pressebox.de.