SAN FRANCISCO (MarketWatch) � Shares of Polycom Inc. fell sharply on Thursday after the maker of videoconferencing systems posted a sales and earnings outlook that fell below Wall Street expectations.
/quotes/zigman/60019/quotes/nls/plcm PLCM 9.87, -0.96, -8.86% /quotes/zigman/3870025 SPX 1,354.68, -12.90, -0.94%
Polycom�s stock PLCM �fell 20% to close at $14.56 after the Pleasanton, Calif.-based company reported that it expects an adjusted first-quarter profit of 21 cents to 23 cents a share, and revenue in the range of $364 million to $370 million. Analysts were expecting a profit of 30 cents a share, on revenue of $397 million, according to a consensus survey by FactSet Research.
The drop put the shares at a new 52-week low. The stock has shed more than 30% since mid-February.
In a statement, Chief Executive Andrew Miller said the company grew slower than expected, �driven primarily by shortfalls in Asia Pacific and North America.�
The company is scheduled to report first-quarter financials on April 18.
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BMO Capital analyst Tim Long cut Polycom�s rating to market perform from outperform, citing �a pretty big miss� for the March quarter.
�Our checks had been mixed, but this is still worse than expected,� Long said in a note. �We believe a combination of a more aggressive Cisco and the realignment of the sales force is likely to blame for the shortfall. The company has now missed two of the last three quarters.�
Cisco Systems Inc. has been aggressively taking aim at the videoconferencing market, an effort that got a boost with its 2010 acquisition of Tandberg. Shares of Cisco CSCO �were trading down 1% at $20.12.
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