UPDATE 2-Polycom Q4 profit beats estimates; sees lower Q1 rev
* Q4 adj EPS 42 cents beats estimates of 40 cents
* Q4 revenue misses estimates
* Sees Q1 sales lower than Q4 on delayed budget decisions
* Sees Q1 gross margin falling sequentially
* Q4 Video services segment sales up (Recasts, adds outlook, comments from conference call)
Jan 21 (Reuters) - Video conferencing products maker Polycom Inc PLCM.O posted a quarterly profit that beat market estimates on strong growth at its video services segment, but warned of a sequential drop in revenue as firms delayed budget decisions.
Polycom and Norway's Tandberg TAA.OL dominate the video conferencing market which is expected to grow as companies looking to cut travel costs in a bleak economy choose video conferencing as a cheaper alternative to face-to-face meetings.
Polycom's fourth-quarter revenue from its video services segment rose 6.7 percent to $175.9 million, while that from its voice communications business fell 11.5 percent.
Fourth-quarter net income increased to $25.7 million, or 30 cents a share, from $22.8 million, or 25 cents a share, a year earlier. Revenue was flat at $263 million. Continuación...