UPDATE 1-Polycom sees Q4 earnings above estimates, cuts jobs
(Recasts, adds details, share movement)
Jan 6 (Reuters) - Video-conferencing products maker Polycom Inc PLCM.O forecast fourth quarter earnings above market estimates and said it laid off 6 percent of it workforce to reduce costs, and its shares rose 8 percent.
The company said the 150 job cuts were with immediate effect and that it would take a related charge of about $6.5 million in the first quarter of 2009. Polycom however cut its revenue view due to a continued weakness in its voice communications business. It now expects revenue to fall to $263 million to $265 million in the fourth-quarter ended December 31.
The company had earlier expected revenue to be sequentially flat.
Polycom said it expects fourth-quarter earnings of 29 cents to 31 cents a share. Excluding items, it expects to earn 39 cents to 41 cents a share.
Analysts on average expect earnings of 35 cents a share, before special items, on revenue of $271.5 million, according to Reuters Estimates.
Polycom and Norway's Tandberg TAA.OL dominate the video conference systems industry in a virtual duopoly, with the two companies controlling 80 percent to 90 percent of the market.
Shares of the company, whose customers include Dell DELL.O, Pfizer (PFE.N: Cotización) and American Express (AXP.N: Cotización), were up 8 percent at $14.97 in trading after the bell. They closed at $13.87 Tuesday on Nasdaq. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Savio D'Souza ) ((firstname.lastname@example.org; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: email@example.com))
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