Polycom Inc SWOT Analysis & Company Profile by BusinessReview

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									Polycom, Inc.


Polycom, Inc.: SWOT Analysis & Company

Reference code: TC0011CP

Published: Jan 2011

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Polycom, Inc. - SWOT Profile                                                        Page 1
Polycom, Inc.


Polycom, Inc. - Company Overview

Polycom, Inc. (Polycom) is one of the leading unified communication solutions providers in the US. The company is
principally engaged in the provision of a range of voice, video, and telepresence communications. It also provides video
and voice media servers and network management solutions. Polycam has more than 600 issued or pending approval
patents and over 15 million lines of active code across its product portfolio. The company manages its business
operations under three reportable segments namely, Video Communications Solutions, Voice Communications Solutions
and Services. Polycom manages its operations in different parts of the world including the US, Canada, Europe, Middle
East and Africa, Caribbean and Latin America and Asia. Polycom is headquartered in Pleasanton (California), the US.

Financial Performance

The company reported revenues of (U.S. Dollars) USD 966.98 million during the fiscal year ended December 2009, a
decrease of 9.57% from 2008. The operating profit of the company was USD 69.64 million during the fiscal year 2009, a
decrease of 26.01% from 2008. The net profit of the company was USD 49.88 million during the fiscal year 2009, a
decrease of 34.11% from 2008.

Polycom, Inc. - Key Facts

Polycom, Inc., Key Facts

                                  4750 Willow Road, Pleasanton,
                                  California (CA), 94588, United    Ticker Symbol, Stock
Corporate Address:                                                                                   PLCM (NASDAQ)

Telephone                         + 1 925 9246000                   No. of Employees                 2,693

Fax                               + 1 925 9246100                   Financial Year End               December

URL                               www.polycom.com                   Revenue (in USD Million)         966.98

                                  Technology and
Industry                          Communications

                                  Australia, Hong Kong Special Administrative Region of China, India, Republic of Korea, Singapore,
                                  Taiwan, Thailand, Asia-Pacific, Denmark, France, Germany, Italy, Netherlands, Norway, Poland,
Locations                         Romania, Russian Federation, Spain, Sweden, Switzerland, United Kingdom, Europe, Israel, Middle
                                  East and Africa, Canada, United States, North America, Argentina, Brazil, Chile, Mexico, Peru, South
                                  and Central America
Source: Annual Report, Company Website, Primary and Secondary Research


Polycom, Inc. - SWOT Profile                                                                                                 Page 2
Polycom, Inc.


Polycom, Inc. - Business Description

Polycom is a US based technology company that provides a diversified set of communications solutions. It provides
solutions to connect and communicate from the personal desktops, meeting rooms, class rooms, and mobile settings to
various government, enterprise, education, and healthcare customers. The company partners with leading Unified
Communications (UC) providers such as Avaya, Broasoft, Cisco Systems, HP, Juniper, Microsoft, Siemens, and IBM to
offers an open and interoperable collaborative solutions to large global enterprises and organizations. Polycom employs
2,693 people.

Polycom conducts its business activities under three reportable segments namely, Video Communication Solutions, Voice
Communications Solutions, and Services.

The Video Communications Solutions segment is engaged in the provision of a broad spectrum of video conferencing
collaboration products from entry level to professional high definition products to all meeting rooms ranging from small
offices to large boardrooms and auditoriums. This segment also provides a broad range of network infrastructure
hardware and software to facilitate video, voice and data conferencing and collaboration solutions to telecommunications
service providers, businesses, and to various governmental and educational institutions.

The Video Communications Solutions segment offers a wide range of telepresence solutions, video conference systems,
management applications, security and remote access solutions, and other accessories under Polycom HDX series,
Polycom VSX series, and Polycom QDX series. Under HD series the company provides different products namely,
Polycom HDX 9000 Series, Polycom HDX 8000 Series, Polycom HDX 7000 Series and Polycom HDX Media Center, as
room conferencing requirement. Polycom offers HD video conferencing systems like Polycom HDX 4000 series and
Polycom Converged Management Application (CMA) desktop. It also provides telepresence solutions in a broad array of
configurations such as eight or 16-foot high definition picture views, high definition sound and EyeConnect technology.
During the fiscal year 2009, the Video Communications segment contributed 54% towards the total revenues of the
company, generating USD 523.35 million, a decrease of 6.56% over the previous year.

The company’s Voice Communications Solutions segment provides a comprehensive range of voice communications
products which could enhance business communications in the conference room, on the desktop and in mobile
applications. It maintains strategic technology relationship with 3Com, Adtran, Alcatel-Lucent, Avaya, BroadSoft, Cisco,
Digium, Interactive Intelligence, Metaswitch, Nortel, Sphere Communications, Sylantro, and so on, for VoIP call
managers. It designs a range of desktop phones under the SoundPoint series on the basis of Session Initiation Protocol
(SIP). It also supplies the Polycom Communicator Speakerphone for the PC-based Voice and Video over IP (V2oIP) and
Voice over Instant Messaging (VoIM) markets. The SpectraLink Wi-Fi products support the communication requirements
of vertical market segments like healthcare, retail, manufacturing and hospitality. During the fiscal year 2009, the Voice
Communications Solutions segment contributed 27.7% towards the total revenues of the company, generating USD
268.16 million, a decrease of 24.18% over the previous year.

The Service segment of the company is engaged in the provision of a wide range of service and support to resellers and
end-user customers. It offers maintenance programs; integration services such as education, consulting, design and
project management services. The company is specialized in the provision of consulting services such as planning and
needs analysis for end-users and design services, such as room design and custom solutions; and project management,
installation and training. During the fiscal year 2009, the Services segment contributed 18% towards the total revenues of
the company, generating USD 175.45 million, a decrease of 12.8% over the previous year.

The company markets and sells its communication products through a broad network of channel partners such as value-
added resellers, distributors, service providers, strategic partners, and retailers. Polycom distributes voice and video
endpoint products through warehouses located in Hong Kong, Netherlands, Thailand, and Tracy, California. It distributes
telepresence products directly from manufacturing locations in Israel, China, Colorado and Thailand.

Polycom is continuously engaged in the research and development of new architectures, improvement of existing
products, and develop new products to obtain technological competitiveness. During the fiscal year 2009, the company
spent USD 117.6 million, which is equal to 12% of its total revenue in 2009.

The company operates in five geographic regions namely, the US, Canada, Europe, Middle East and Africa, Caribbean
and Latin America and Asia. During the fiscal year 2009, the company reported revenues of USD 460.69 million from the
US region, followed by USD 44.04 million from Canada, USD 240 million from Europe, Middle East and Africa, USD
190.46 million from Asia, and USD 31.78 million from Caribbean and Latin America.

Recently, the company launched a portfolio of Unified Communications Professional Services through Polycom Global
Services, Polycom Open Collaboration Network partners, and certified Polycom partners to help customers successfully
integrate Polycom voice and visual communications solutions. It also signed an expanded global agreement with HP,
where Polycom’s complete portfolio of voice and video technologies will be sold by HP. In addition, the company also
expanded its relationship with Avaya to jointly develop and market integrated video, voice and collaboration solutions.


Polycom, Inc. - SWOT Profile                                                                                     Page 3
Polycom, Inc.


Polycom, Inc. - Major Products and Servic
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