y/y down $6M of video systems
y/y up $3M for network systems
y/y down $30M for voice (thats -30%!!!)
I love Bob's quote:
“Although we experienced the challenges of the current economic environment in the first quarter, we believe the core drivers of our business remain strong,” said Robert Hagerty, Polycom chairman and CEO. “Now, more than ever, our customers are sensitive to discretionary spending and are increasingly focused on solutions that drive a hard-dollar return on investment (ROI) to improve their bottom line
I think maybe he's getting what i've blogged about earlier last year that customers want value priced solutions that have quicker ROIs.
Something interesting he mentioned was his excitement about the Polycom CX5000:
http://response.polycom.com/forms/SearchRegForm_CX5000InfoPack
For those not in the know, this is the Microsoft Roundtable. I really cant believe that PLCM was gullible enough to get saddled with this product. It took MS years to develop and no one wants it. What a waste of time/effort/money on PLCMs part to take this product on!
should be interesting to see what TAA posts...I don't expect it to be very good. Too bad LS is not public, I'd love to see how big their growth really is.
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Looks like Microsoft has sold 7,000 of them in 18 months:
http://www.crn.com/networking/216402069;jsessionid=1WQGRXEKYY2OSQSNDLRSKHSCJUNN2JVN
$15-20M a year in revenue, and Polycom didn't have to invest in R&D. Sounds like a pretty sweet deal to me.
Hi who_me?
Not sure if you run a company or not. But, in a business, you have to look at whats the best investment to make. There are several issues:
1. I really don't get why MS made the investment at all. When you're the size of MS, $20M in 18months is peanuts. How could you go to the board and tell them about a product that had less _revenue_ than just the interest on the MS checking account makes daily. If a product costs you more than the cost of money..its an automatic loser.
And if you compare that to Polycom...PLCM is about a $1B company. why waste time on a product that only contributes less than 1% on a yearly basis. To move forward in the game they need to invest in products that are going to contribute significant revenue, say 10%.
2. Ok, MS sold 7K of them in 18 months. Who's to say PLCM is going to sell anymore. I'll argue that most of that 7K of units people just bought to discover how bad the product is. If was such a hot seller, why would MS want to drop it.
My prediction...PLCM is going to waste a bunch of money stocking up their sales team, demo gear, etc, etc...spend money on marketing and never recoup any of it. Its going to be a money loser.
Why buy a QCIF product for the price of a HD product from a company like LS????
Polycom's latest results were a bit shocking--it's their third quarter in a row of missing their guidance. Of course, we'll have to wait to see Tandberg's results to see whether it was the weak economy to blame or if Tandberg is continuing to take market share.
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