High-Tech Meetings

02/09/2007 12:00 am EST

Focus:

Jim Collins

Chairman and CEO, Insight Capital Research & Management, Inc.

Are in-person meetings destined to become relics of the past? With stock pro Jim Collins' new investment recommendation, which offers voice, data, video & web communications via video- and tele-conferencing, one might reasonably think so...

"Polycom, Inc. (PLCM NASDAQ GS) is a leading global provider of communications equipment that enables enterprise users to more effectively conduct video, voice, data, and web communications. In video communications, Polycom's VSXT and V-series product lines comprise a suite of high-performance, cost-effective and easy-to-use group video conferencing systems. The Polycom PVXT desktop video conferencing product extends professional-grade video conferencing to desktop or laptop PC's. Additionally, the company has launched a broad line of high definition video products for the conference room market.

"Voice products include the Vortex series of rack-mounted voice conferencing products for larger, high-end conference rooms, training rooms, auditoriums, courtrooms, classrooms, and other permanent installations. They can be used as a stand alone audio system or in combination with a video system to significantly enhance the voice quality and microphone pick up. Additionally, Polycom offers a wide variety of desktop and conference phones, including VoIP products, under the SoundPoint and SoundStation brands.

"The network systems segment includes a broad line of media servers to enable voice and video conferencing. The services segment assists end customers with installation, training and network design.

"In January, Polycom launched the Polycom RealPresenceT Experience High Definition (RPXT HD) telepresence solutions. The systems include full eight or 16-foot HD cinematic views, stereo surround sound and EyeConnectT technology that puts the camera at eye level for more natural face-to-face interaction. RPX HD solutions provide intimate and effective communication and collaboration with enhanced clarity. RPX HD telepresence solutions are ideal for business applications where the details are important, including merger and acquisition negotiations, executive management of internal teams and outsourced vendors, hiring and training, customer and partner negotiations, research and development activities, etc.

"For the quarter ended December 31, 2006, Polycom reported net income of $0.35 per share, compared to $0.23 reported in the prior year. Total revenue increased 19% to $186.5 million compared to $156.1 million reported last year. Results were driven by strength in all product segments, particularly in VoIP products. Additionally, Polycom saw its backlog and deferred revenue grow to record levels during the quarter.

"Polycom's stock reached a multi-year high on January 30, 2007 before retreating modestly. Of the approximately 88.6 million shares in float, 1,245,880 trade daily. Banks and mutual funds own 33% and management owns an additional 4% of the shares outstanding. The company has a relative strength of 95 and receives a rating of A- for accumulation/distribution."

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