Polycom (PLCM) climbed in pre-market trading, after issuing its fourth quarter guidance above street estimates.
The stock was up $1.53 just before 8:45 am ET, advancing to $15.40. If pre-market gains hold, the stock will open at its highest level since mid-December.
Tuesday, Polycom said it has decided to cut its global workforce by approximately 150 positions or 6%, in a move to reduce its cost structure. The company also revealed earnings and revenue projections for the fourth quarter ended December 31, 2008.
On a GAAP basis, earnings for the fourth quarter are expected in the range of $0.29 to $0.31 per share, while on a non-GAAP basis, they are expected between $0.39 and $0.41 per share. Revenues are anticipated to be within the range of $263 million to $265 million.
Eleven analysts, on average, polled by First Call/Thomson Financial currently expect the company to earn $0.35 per share on revenues of approximately $269.44 million for the fourth quarter. Analysts' estimates typically exclude special items such as one-time gain or expense.
"As shown by our strong bottom-line results, we took proactive measures in the fourth quarter to control our operating costs and, through our restructuring, are also taking actions to optimize our cost structure as we move into 2009", said Robert Hagerty, President and Chief Executive Officer of Polycom.
Following the job cuts, the company said it will incur restructuring charges and make cash expenditures totaling approximately $6.5 million in the first quarter of 2009, primarily related to severance and other employee termination benefits.
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