Polycom Announces Anticipated First Quarter Results; Completion of Acquisition Of Circa Communications and Share Repurchase Program

Apr 02, 2001, 01:00 ET from Polycom, Inc.

    MILPITAS, Calif., April 2 /PRNewswire/-- Polycom(R), Inc. (Nasdaq:   PLCM),
 a worldwide leader in broadband communication solutions, today reported that
 it expects net revenues for the quarter ended March 31, 2001 to be in the
 range of $95 million to $97 million, compared with revenues of $75.6 million
 in the first quarter of 2000.  The Company expects pro forma net income in the
 range of $0.16 to $0.18 per diluted share, excluding acquisition-related
 costs, compared to a pro forma net income of $0.13 per diluted share,
 excluding the release of litigation reserves, in the first quarter of 2000.
 These preliminary results reflect the results of Accord Networks, acquired by
 the Company effective February 28, 2001, and accounted for as a pooling of
 interests.  Prior periods have been restated for the Accord acquisition.
     These preliminary results are based on management's initial analysis of
 operating results.  The Company will announce its final results for the
 quarter as planned after market close on April 25, 2001.
 
     POLYCOM COMPLETES ACQUISITION OF CIRCA COMMUNICATIONS LTD.
     Polycom also announced the completion of its acquisition of Circa
 Communications Ltd., a leading developer of voice over internet protocol
 (VoIP) telephony products.
     Under the terms of the transaction, originally announced
 September 12, 2000, Polycom will exchange approximately 665,000 shares of
 common stock for all outstanding Circa shares and assume Circa options
 exercisable into approximately 249,000 shares of Polycom common stock.  An
 additional 422,000 shares of Polycom common stock will be delivered upon the
 successful completion of certain revenue-based earn-out thresholds.  As
 previously announced, Polycom will account for the merger as a purchase.
     Circa's development team will remain in North Vancouver, Canada, and Circa
 will be integrated into Polycom's Voice Communications product line.
 
     SHARE REPURCHASE PROGRAM
     Polycom further announced today that its Board of Directors has approved a
 stock repurchase program in which up to 1,275,000 shares of its common stock
 may be repurchased from time to time, representing the maximum number of
 shares which Polycom may repurchase under the pooling of interests accounting
 of its recent acquisition of Accord Networks and the repurchase of shares
 Polycom will issue through the closing of the Circa acquisition.
     Purchases shares may be made, from time to time, in the open market or in
 privately negotiated transactions and will be funded from available working
 capital. The number of shares to be purchased and the timing of purchases will
 be based on the level of Polycom's cash balances, general business and market
 conditions, and other factors, including alternative investment opportunities.
     Robert Hagerty, president and CEO of Polycom, stated that "the decision
 was made in view of the prices at which the Company's common stock has
 recently traded, which we believe do not reflect the true long-term value of
 the Company."  Mr. Hagerty further stated that the repurchase program will
 also offset the dilutive effect to earnings per share caused by the issuance
 of stock under Polycom's employee stock plans.
     Polycom will hold a conference call today at 5:00 p.m. ET/2:00 p.m. PT, to
 discuss its preliminary first quarter results, the completion of the
 acquisition of Circa, and the commencement of share repurchases.
 Robert Hagerty, Chairman, President and CEO, and Michael Kourey, CFO will host
 the conference.  Interested parties may participate by viewing the website at
 www.polycom.com, or in the U.S. and Canada by calling 888-243-1119 and outside
 the U.S. and Canada by calling 212-231-6042.
 
     About Polycom
     Polycom develops, manufactures and markets a full range of high-quality,
 easy-to-use and affordable voice and video communication endpoints and network
 infrastructure and access solutions. Polycom's integrated communications
 solutions enable business and professional users to immediately realize the
 benefits of voice, video and data over rapidly growing broadband networks.
 Additional information about Polycom is available at www.polycom.com.
     This release contains forward-looking statements about our expected net
 revenues and earnings for the first quarter of fiscal 2001. These statements
 are subject to many risks and uncertainties, including potential discrepancies
 between management's initial and complete analyses of operating results for
 the first quarter of fiscal 2001 and possible accounting entries made before
 the announcement of final results on April 25.  Further risks are detailed
 from time to time in Polycom's SEC reports, including its Form 10-K Report for
 2000 and subsequent Form 10-Q filings.
 
     NOTE:  Polycom and the Polycom logo design are registered trademarks of
 Polycom, Inc. in the U.S. and various countries.
 
 

SOURCE Polycom, Inc.
    MILPITAS, Calif., April 2 /PRNewswire/-- Polycom(R), Inc. (Nasdaq:   PLCM),
 a worldwide leader in broadband communication solutions, today reported that
 it expects net revenues for the quarter ended March 31, 2001 to be in the
 range of $95 million to $97 million, compared with revenues of $75.6 million
 in the first quarter of 2000.  The Company expects pro forma net income in the
 range of $0.16 to $0.18 per diluted share, excluding acquisition-related
 costs, compared to a pro forma net income of $0.13 per diluted share,
 excluding the release of litigation reserves, in the first quarter of 2000.
 These preliminary results reflect the results of Accord Networks, acquired by
 the Company effective February 28, 2001, and accounted for as a pooling of
 interests.  Prior periods have been restated for the Accord acquisition.
     These preliminary results are based on management's initial analysis of
 operating results.  The Company will announce its final results for the
 quarter as planned after market close on April 25, 2001.
 
     POLYCOM COMPLETES ACQUISITION OF CIRCA COMMUNICATIONS LTD.
     Polycom also announced the completion of its acquisition of Circa
 Communications Ltd., a leading developer of voice over internet protocol
 (VoIP) telephony products.
     Under the terms of the transaction, originally announced
 September 12, 2000, Polycom will exchange approximately 665,000 shares of
 common stock for all outstanding Circa shares and assume Circa options
 exercisable into approximately 249,000 shares of Polycom common stock.  An
 additional 422,000 shares of Polycom common stock will be delivered upon the
 successful completion of certain revenue-based earn-out thresholds.  As
 previously announced, Polycom will account for the merger as a purchase.
     Circa's development team will remain in North Vancouver, Canada, and Circa
 will be integrated into Polycom's Voice Communications product line.
 
     SHARE REPURCHASE PROGRAM
     Polycom further announced today that its Board of Directors has approved a
 stock repurchase program in which up to 1,275,000 shares of its common stock
 may be repurchased from time to time, representing the maximum number of
 shares which Polycom may repurchase under the pooling of interests accounting
 of its recent acquisition of Accord Networks and the repurchase of shares
 Polycom will issue through the closing of the Circa acquisition.
     Purchases shares may be made, from time to time, in the open market or in
 privately negotiated transactions and will be funded from available working
 capital. The number of shares to be purchased and the timing of purchases will
 be based on the level of Polycom's cash balances, general business and market
 conditions, and other factors, including alternative investment opportunities.
     Robert Hagerty, president and CEO of Polycom, stated that "the decision
 was made in view of the prices at which the Company's common stock has
 recently traded, which we believe do not reflect the true long-term value of
 the Company."  Mr. Hagerty further stated that the repurchase program will
 also offset the dilutive effect to earnings per share caused by the issuance
 of stock under Polycom's employee stock plans.
     Polycom will hold a conference call today at 5:00 p.m. ET/2:00 p.m. PT, to
 discuss its preliminary first quarter results, the completion of the
 acquisition of Circa, and the commencement of share repurchases.
 Robert Hagerty, Chairman, President and CEO, and Michael Kourey, CFO will host
 the conference.  Interested parties may participate by viewing the website at
 www.polycom.com, or in the U.S. and Canada by calling 888-243-1119 and outside
 the U.S. and Canada by calling 212-231-6042.
 
     About Polycom
     Polycom develops, manufactures and markets a full range of high-quality,
 easy-to-use and affordable voice and video communication endpoints and network
 infrastructure and access solutions. Polycom's integrated communications
 solutions enable business and professional users to immediately realize the
 benefits of voice, video and data over rapidly growing broadband networks.
 Additional information about Polycom is available at www.polycom.com.
     This release contains forward-looking statements about our expected net
 revenues and earnings for the first quarter of fiscal 2001. These statements
 are subject to many risks and uncertainties, including potential discrepancies
 between management's initial and complete analyses of operating results for
 the first quarter of fiscal 2001 and possible accounting entries made before
 the announcement of final results on April 25.  Further risks are detailed
 from time to time in Polycom's SEC reports, including its Form 10-K Report for
 2000 and subsequent Form 10-Q filings.
 
     NOTE:  Polycom and the Polycom logo design are registered trademarks of
 Polycom, Inc. in the U.S. and various countries.
 
 SOURCE  Polycom, Inc.