Polycom, Inc. (NASDAQ:PLCM) Q4 2014 Earnings Conference Call - Final Transcript
Jan 22, 2015 • 05:00 pm ET
(Operator Instructions) Tavis McCourt, Raymond James.
Peter, for most of the year it looked like the EMEA region actually held up quite well and you mentioned a little bit of strength in China in 4Q, which I expect
is not things we are going to hear universally, this quarter from a lot of companies. So I wonder if you can drill down into those geographies and to what degree you think those trends are sustainable into 2015.
So first and foremost, I will touch on Europe and EMEA and we continue to be very pleased with the team and our performance. And I should probably note that it was a very balanced performance. But it was led by the U.K. And the U.K. team continues to grow at a very steady rate and they continue to win. And although our mix of the business was a little different than it normally been we were also pleased to see growth in Russia from a year-over-year basis.
And the rest of Europe did really a solid job, Middle East, Africa as well. So we grew 5% in Europe. We are continuing to focus on growth. We are continuing to focus on where we can win in Europe and obviously, we are challenged in the same way many others continue to be. We are keeping a keen eye on Russia, as you know it's about 12% of our EMEA business, so we are going to balance that. But, it was a good story and continued to be particularly in the second half of the year as we started to really see some growth. And it was a very strong quarter.
I should also note that Q4 is typically a stronger quarter for us in Europe and that proved to be the case. We also won some government deals in Europe that are longer sales cycle but they came to fruition and were in our favor.
The China story is one that we've talked about of late and it was a bit of a -- a challenged early part of the year in China. But the same held true as it relates to the focus on winning and going into a space that we have done traditionally very well in and continue to focus on growing and we have done that. And there are a series of competitors there that we focus on. The team has done a really solid job. We have been the market share leader in China for a long time. But, I think we've come at it with renewed rigor and looked at where we can broaden our coverage.
So again a really strong story for us. We obviously have watch items related to what happens in Russia from a GDP and political standpoint and oil prices and ruble et cetera and the same holds true in China as we saw GDP expected to not grow at the anticipated pace as previous pundits have forecasted. But, we are continuing to do