William Blair Downgrades Polycom (PLCM) to Underperform

William Blair downgraded Polycom (NASDAQ: PLCM) from Market Perform to Underperform and lowering estimates based on recent VAR discussions indicating that Polycom's business has come under increasing pressure in the June quarter - leading them to believe that there is meaningful risk to consensus estimates

Analyst Jason Ader said their field-level discussions revealed multiple simultaneous disruptions to the business, including: 1) weak video demand and sales execution, which appeared to some extent in the March quarter, and appears to have continued in the June quarter; 2) an overhaul of Polycom's channel partner program, which went into effect on April 1 and has alienated some channels; 3) increased competition in video from Cisco (CSCO), Lifesize, and newer entrants; and 4) longer-term questions on the Microsoft (MSFT) partnership, following Microsoft's recent introduction of a home-grown, room-based video conferencing product.

For an analyst ratings summary and ratings history on Polycom click here. For more ratings news on Polycom click here.

Shares of Polycom closed at $12.86 yesterday.

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