If Microsofts January acquisition of Web conferencing service provider PlaceWare Inc. was supposed to have a chilling effect on the business of PlaceWares chief rival, WebEx Communications Inc., it has yet to be felt.
WebEx enjoyed another strong financial performance in the second quarter of 2003, posting revenues of $44.9 million, up from $33.2 million in the same period a year ago. That helped the San Jose, Calif.-based company more than double its profits, from $3.3 million to $7.9 million year-to-year.
"We had a solid second quarter," said Subrah Iyar, chairman and CEO of WebEx. "Our revenues and earnings grew due to the strength of our usage-based services and continued focus on operational excellence, which enabled us to grow with increased profitability."
In related earnings news this week:
Polycom Inc., a provider of video, voice and Web conferencing and collaboration solutions saw second quarter revenues slide from $122.2 million last year to $99.4 this year. That drove the Pleasanton, Calif.-based companys net income down from $5.6 million to $1.6 million year-to-year. Company officials chose to accentuate the positive however, noting that revenue was up sequentially from the first quarter and Polycom has now been cashflow-positive for 21 consecutive quarters.
Rich media conferencing company Latitude Communications Inc. saw second-quarter revenues fall from $10 million to $8.3 million year-to-year. Product revenues were hardest hit, dropping from $3.5 million to $1.95 million. That helped send the companys net loss up to $1.7 million from $1.2 million in the year-ago period. Revenues from the companys MeetingPlace services business are increasing however, company officials in Santa Clara, Calif. said.
Videoconferencing company Radvision Ltd.s second quarter revenues were nearly unchanged, coming in at $11.6 million after hitting $11.7 million in the same period last year. Net income for the Glen Rock, N.J.-based company was down slightly year-to-year, from $292,000 to $142,000.