Video-conferencing firm Polycom looks and sounds like a leader
Article Abstract:
Last year, conference telephone equipment-maker Polycom moved into the video-conferencing equipment area and swiftly cornered the market by offering products that perform like expensive equipment, but at much lower prices. Polycom's systems cost around $10,000, while those of others were priced at $40,000 and up. As a result, industry rivals now also offer products at $10,000 and under, and sales are up throughout the industry. Polycom retains an advantage, however, due to its unparalleled distribution channel, selling its products directly and through over 175 resellers, including 3M, Lucent Technologies, MCI Worldcom, Southwestern Bell, Ameritech and Nortel. Some industry analysts see the company as very well positioned, and project 19% annualized revenue growth in video-conferencing equipment over the next five years. Other industry experts caution that as society moves away from doing things in groups in 'real time,' video-conferencing will become less popular if not obsolete, and also point to declining sequential revenue and 'significant' insider trading of stock, among other issues, as potential problems that investors should weigh as they consider buying shares in Polycom.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Bay Networks' results to trail forecasts
Article Abstract:
Bay Networks estimated its 3rd qtr 1998 revenue to total $581 million, a figure that will fall considerably short of projections. The computer networking company's revised forecast casts doubt on the strength of its recovery. Bay's performance represents a 10% decline from the 2nd qtr 1998's sales total, and the networking hardware maker said gross profit margins have fallen below the 51.5% level achieved in the 3rd qtr 1997. The new Bay forecast will still top 3rd qtr 1997 revenue by 13%, but analysts expected a stronger rebound to reflect its new Accelar products. A Bay press release blamed the revenue shortfall on unexpectedly weaker customer demand. CEO David House said customer purchase delays stemmed from confusion about new industry standards in many of its product areas.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The design of self-managed learning: some choices and dilemmas. Organisational culture change in mid Devon district council
- Abstracts: Move over, Dad. Turning a loss into a gain
- Abstracts: A new way: Doug Kirkpatrick has discovered the most exciting aspect of computers in the classroom: they change the way he teaches
- Abstracts: What is this language called Java? Scooby Doo, where are you?: at 43rd and Broadway, not on Mount Everest, but a G.P.S. receiver might not tell you that
- Abstracts: Faith and doubt for a maker of modems. Cable modems: for a few, real speed. Voice mail vs. answering machine