Poly Records 21 Percent Sales Growth, Cuts Q1 Losses in Half

Poly – a global outfitter of professional-grade audio/video and conferencing technology that “powers meaningful human connection and collaboration” – noted that it improved its revenues by 21 percent Y2Y for the fiscal 2022 first quarter ended July 3, 2021.

Company sales were $431 million, compared to FY21Q1 revenues of $356 million, with Net Product up 27 percent to $371 million and Net Services down 6 percent to $60 million. At the same time, Poly reduced its overall net losses by 51 percent, hitting $36.8 million, or $0.88 per share. This amount compares to year-ago losses of $75 million, or $1.85 per share.

Other quarterly highlights included:

  • Sales momentum growth of 20 percent Y2Y, driven by “continued strength in Video and rebounding Voice demand.” These areas grew 94 percent and 34 percent, respectively.
  • OEM with an undisclosed, global PC manufacturer to provide headsets.
  • Appointment of Warren Schlichting as Chief Operating Officer.
  • Strategic partnership with video-analysis and management platform CLIPr, to allow users to manage and extract “important moments” of recorded video content.

“Proactive expense management and operational execution allowed us to largely offset the gross margin impact of spot market purchases and elevated freight rates,” said CFO, Chuck Boynton. “With no near-term debt maturity and the recently executed interest rate hedge, we continue to make progress de-risking the balance sheet. We expect lower interest expense and our focus on working capital management to support stronger cash generation in the back half of fiscal ’22.”