The unified collaborative communications (popularly known as video conferencing) market is going through consolidation phase. Polycom Inc. (PLCM: 30.12 -0.13 -0.43%) remains the only pure-play video conferencing solutions provider which is yet to collaborate with another company. The company will declare second quarter 2010 financial results on July 15 after the closing bell. Polycom is a leading solutions provider for video conferencing, with an estimated 40% share of the market.Agreement of Analysts
The overall estimate revision trend is very flat. Over the last 30 days, 1 out of total 8 analysts covering the stock raised his earning estimates for both the second quarter and fiscal 2010. No analyst made any downward earning estimate revision during this period. The current Zacks Consensus Estimate for the second quarter is 21 cents per share, which is actually indicating a 5.11% fall from the prior-year result.
We believe increased competition in the videoconferencing market is the main reason for this negative outlook. After Cisco System Inc’s (CSCO: 22.805 +0.105 +0.46%) acquisition of Tandbarg and Logitech International SA’s (LOGI: 14.41+0.09 +0.63%) purchase of LifeSize Communications, Polycom is facing severe pricing pressure.
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