Polycom Chief Makes Abrupt Exit Over Expense Reports

Videoconferencing vendor Polycom (PLCM) dropped a bombshell late Tuesday—just as it reported Q2 2013 earnings—disclosing that Andrew Miller, its president and chief executive since 2010, had resigned four days earlier when an internal audit revealed “certain irregularities” in his expense reporting. 

What kind of irregularities? So far, no one’s saying but Miller’s resignation recalls the high-profile exit three years ago of former Hewlett-Packard (HPQ) chief Mark Hurd, who also departed under a cloud of improper expense reporting, compounded, by other, shall we say, more salacious, allegations. In this case, Polycom provided no additional details on Miller’s leaving, other than to say in a statement, the “amounts involved did not have a material impact on the Company’s current or previously reported financial statements for any period, nor did they involve any other employees.”

Miller’s immediate, interim replacement is Kevin Parker, Polycom’s current chairman of the board, who’s served in that capacity only for two months but has been a board member since 2005. Parker is a co-founder and managing principal at Bridge Growth Partners, a private equity buyout firm startup launched last month.

“Andy Miller’s resignation under these circumstances is disappointing and should not be viewed as a reflection of the financial integrity of the company, the strength of our team or our plans for the future,” Parker said. “I look forward to working with the Polycom team, partners and customers to drive our strategy forward, and we thank Andy for his four years of service.”

In an SEC filing, Polycom disclosed that Miller will remain as a Polycom employee through Aug. 15 and will receive a $500,000 buyout and retain eligibility for his bonus for the first six months of this year.

In a separate SEC filing, Polycom said Tracey Newell, its global sales executive vice president for the past two years, resigned July 18 and will leave the company on Aug. 15 for what the vendor called a non-competitive situation. Newell’s departure and Miller’s resignation are unrelated, Polycom said.

As for Polycom’s Q2 2013 financial performance, the company posted $345.2 million in sales, a 4 percent slide from the same period last year. Net income fell some 16 percent to $5.3 million or $0.03 per share.

“Our second quarter sales results demonstrate continued progress with our new products, as we expand our addressable market and grow our services businesses,” said Eric Brown, Polycom chief operating officer and chief financial officer.