Videoconferencing company Polycom Inc said it will sell its enterprise wireless voice solutions business to an affiliate of Sun Capital Partners for about $110 million in cash, and lowered its guidance for the second quarter.
The Pleasanton, California-based company said it would use $104 million of the proceeds to increase its $800 million share buyback program, of which about $78 million was remaining. The remaining authorization will now amount to about $182 million.
As a result of the deal, the company cut its forecast for adjusted second-quarter earnings to 18 cents to 20 cents per share from 20 cents to 22 cents per share -- a projection made when it released first-quarter earnings on April 18.
Analysts' on average were expecting the company to earn 21 cents per share in the second quarter, according to Thomson Reuters I/B/E/S.
Shares of Polycom, which touched a two-year low of $11.72 in intra-day trade on Thursday, closed at $12.01 on the Nasdaq. They have fallen more than 40 percent since the end of February.
Sun Capital Partners is a private equity firm based in Boca Raton, Florida. Founded in 1995, it manages about $8 billion in assets.
This article is copyrighted by Reuters
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