Polycom sees better-than-expected 2Q, stock offering

On the same day it unveiled plans for a stock offering of 2.6 million shares, Polycom (Nasdaq: PLCM) said it expects to report second quarter results slightly ahead of consensus estimates.

After market close Thursday, the maker of conferencing equipment said it sees second quarter profit ranging between 30 and 31 cents per share, on revenue of $75.5 million to $77.5 million. First Call's survey of nine analysts predicts second quarter earnings of 29 cents per share for the quarter ended June 30.

Also Thursday, Polycom said it registered with the U.S. Securities and Exchange Commission to offer 2.6 million shares. The filing indicates a maximum per-share offering price of $91.2656, for a total of almost $272.9 million, although the actual price may be different by the time shares are actually sold.

Following the announcements, shares of Polycom traded at 85 1/8 in afterhours activity on the Island electronic communications network. The stock closed Thursday's regular trading at 85 3/16, down 5/16 for the session. Polycom has gained roughly 60 percent since mid-May.

The company would sell 1.6 million shares. The other 1 million would be sold by Minnesota Mining & Manufacturing, also known as 3M (NYSE: MMM), which currently owns about 2 million Polycom shares, or 5.7 percent of the company.

Polycom had more than 35.2 million shares outstanding at the end of March, and expects to have 36.8 million outstanding following the offering. The company said it would use funds raised for general corporate purposes including possibly an acquisition or investment, although Polycom added it is not currently in talks with anyone.

Morgan Stanley Dean Witter and Thomas Weisel Partners are co-lead managers of the offering, with Dain Rauscher Wessels and UBS Warburg assisting.>