Poly remains bullish despite seeing the ongoing components shortage hit revenue in its Q3.

The vendor reported sales of $410m for the quarter ending 1 January 2022, down 15.5 percent year on year.

The sales figure however exceeded analyst expectations and Poly revealed that its backlog grew $59m sequentially during the quarter, taking total backlog to “hundreds of millions of dollars”.

Poly CEO Dave Shull said on an earnings call with investors that he sees light at the end of the tunnel.

“Our backlog tells the story,” he said.

“While we’re excited to see so much demand growth, we are frustrated because we want to fill our customers’ orders sooner than we currently can”

“Our supply chain team is doing extraordinary work to deliver improvements.

“Our recycling and refurbishing initiative is also working. We’ve already taken in approximately 15,000 devices from customers and we’re in the process of refurbishing and redistributing them to customers in need. Those that can’t be refurbished are recycled. A win for our customers, for us, and for our ESG initiatives.”

Shull said that Poly “sees a path” to mid-single-digit sales growth next year, with supply chain constraints continuing to have an impact in the first half of the period – but sales accelerating because of product redesigns and demand tailwinds in the second half.

The CEO also said that recent price rises have helped ease margin pressure.

Growth in All Three Areas

 Poly said that video accounts for around one-third of its overall backlog, with headsets slightly higher and desk phones slightly lower.

Shull however described video as “the growth engine of the company” because a chunk of the delayed shipments are high-margin products.

He also revealed that Poly has seen a “very, very significant uptick” on the voice side, although this demand has been suppressed by supply contrains. He said that this surge is being driven in part by companies looking to ditch their PSTN lines and upgrade devices.

 

 



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