StockCall Review on Polycom and Plantronics: Systems Software Companies Perform Well -- LONDON, February 20, 2013 /PRNewswire/ --
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
[ http://www.stockcall.com/register ]
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
[ http://www.StockCall.com/PLCM022013.pdf ]
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 11th. 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
[ http://www.StockCall.com/PLT022013.pdf ]
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 medium-term.
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