<PAGE>
EXHIBIT 99.2
SELECTED HISTORICAL FINANCIAL DATA OF ACCORD NETWORKS LTD.,
SELECTED UNAUDITED PRO FORMA COMBINED FINANCIAL DATA
OF POLYCOM, INC. AND ACCORD NETWORKS LTD.
AND SELECTED COMPARATIVE HISTORICAL AND PRO FORMA PER SHARE DATA
OF POLYCOM, INC. AND ACCORD NETWORKS LTD.
The following Selected Historical Financial Data of Accord Networks Ltd.,
Selected Unaudited Pro Forma Combined Financial Data of Polycom, Inc. and Accord
Networks Ltd. and Selected Comparative Historical and Pro Forma Per Share Data
of Polycom, Inc. and Accord Networks Ltd. are also provided in the Registration
Statement on Form S-4, as amended, filed by Polycom, Inc. with the Securities
and Exchange Commission on January 9, 2001, in connection with the pending
merger of Merger Sub Ltd., a wholly-owned subsidiary of Polycom, Inc., with and
into Accord Networks Ltd., with Accord Networks Ltd. surviving the merger as a
wholly-owned subsidiary of Polycom, Inc. Additional information concerning the
pending merger of Polycom and Accord is available in the Registration Statement
on Form S-4, as amended, filed by Polycom with the Securities and Exchange
Commission on January 9, 2001.
<PAGE>
SELECTED HISTORICAL FINANCIAL DATA OF ACCORD NETWORKS LTD.
You should read the selected financial data set forth below in conjunction
with "Management's Discussion and Analysis of Financial Condition and Results of
Operations" and the financial statements and related notes included in the
Registration Statement on Form S-4, as amended, filed by Polycom, Inc.
with the Securities and Exchange Commission on January 9, 2001.
The audited consolidated balance sheet data as of December 31, 1998 and
1999 and the audited consolidated statement of operations data for the fiscal
years ended December 31, 1997, 1998 and 1999 and the unaudited consolidated
financial statements for the nine months ended September 30, 1999 and 2000
have been derived from the financial statements included the Registration
Statement on Form S-4, as amended, filed by Polycom, Inc. with the Securities
and Exchange Commission on January 9, 2001. The consolidated balance sheet
data as of December 31, 1995, 1996 and 1997 and the consolidated statement of
operations data for the fiscal years ended December 31, 1995 and 1996 have
been derived from audited financial statements not included in this document
or Polycom's Form S-4.
Accord's consolidated financial statements have been prepared according to
U.S. generally accepted accounting principles. In the opinion of Accord's
management, the consolidated statement of operations data for the nine months
ended September 30, 1999 and 2000 and the consolidated balance sheet data as of
September 30, 2000 include all adjustments, consisting only of normal recurring
adjustments, that are necessary for the fair presentation of Accord's results of
operations and financial position for those periods.
Historical results are not necessarily indicative of future results and the
results for interim periods are not necessarily indicative of the results that
may be expected for the entire year.
<TABLE>
<CAPTION>
NINE MONTHS
ENDED
DECEMBER 31, SEPTEMBER 30,
---------------------------------------------------- ---------------------
1995 1996 1997 1998 1999 1999 2000
-------- -------- -------- -------- -------- --------- ---------
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C> <C> <C> <C>
CONSOLIDATED STATEMENT OF OPERATIONS DATA:
Net revenues................................ $ -- $ -- $ 1,578 $12,597 $24,835 $16,910 $28,704
Gross profit................................ -- -- 611 8,120 17,325 11,804 20,203
Operating income (loss)..................... (3,717) (3,213) (4,909) (950) 506 185 (5,291)
Income (loss) before provision for income
taxes..................................... (3,681) (3,028) (5,002) (980) 364 152 (4,552)
Net income (loss)........................... $(3,681) $(3,028) $(5,002) $ (980) $ 364 $ 152 $(4,552)
Net income (loss) per share:
Basic..................................... $ (3.16) $ (2.42) $ (3.92) $ (.77) $ .28 $ 0.12 $ (0.57)
Diluted................................... $ (3.16) $ (2.42) $ (3.92) $ (.77) $ .02 $ 0.01 $ (0.57)
Weighted average shares outstanding:
Basic..................................... 1,165 1,249 1,277 1,277 1,318 1,277 7,996
Diluted................................... 1,165 1,249 1,277 1,277 16,093 15,407 7,996
</TABLE>
<TABLE>
<CAPTION>
AS OF
AS OF DECEMBER 31, SEPTEMBER 30,
---------------------------------------------------- ------------
1995 1996 1997 1998 1999 2000
-------- -------- -------- -------- -------- ------------
(IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C>
CONSOLIDATED BALANCE SHEET DATA:
Cash, cash equivalents and short-term
investments..................................... $ 1,077 $ 2,009 $ 2,099 $ 1,436 $ 5,787 $57,605
Working capital................................... 949 2,613 3,775 4,890 10,682 60,222
Total assets...................................... 2,110 4,287 7,388 10,113 20,498 81,414
Notes payable, less current portion............... 250 250 250 -- -- --
Mandatorily redeemable convertible preferred
stock........................................... 5,251 10,315 10,676 19,415 25,916 --
Total stockholders' equity (deficit).............. (4,068) (7,096) (12,098) (13,073) (12,460) 65,032
</TABLE>
<PAGE>
SELECTED UNAUDITED PRO FORMA COMBINED FINANCIAL DATA
OF POLYCOM, INC. AND ACCORD NETWORKS LTD.
The selected unaudited pro forma combined financial data gives effect to the
proposed merger of Polycom and Accord on a pooling-of-interests basis. The
unaudited pro forma balance sheet data as of September 30, 2000 gives effect to
the proposed merger as if it occurred on September 30, 2000. The unaudited pro
forma statement of operations data present the combined results of operations of
Polycom and Accord, as if the proposed merger had been effective at the
beginning of each period presented.
The selected unaudited pro forma combined financial data are presented for
illustrative purposes only and are not necessarily indicative of the combined
financial position or results of operations of future periods or the results
that actually would have been realized had the entities been a single entity
during these periods.
<TABLE>
<CAPTION>
NINE MONTHS
ENDED
DECEMBER 31, SEPTEMBER 30,
---------------------------------------------------- -------------------
1995 1996 1997 1998 1999 1999 2000
-------- -------- -------- -------- -------- -------- --------
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C> <C> <C> <C>
CONSOLIDATED STATEMENT OF OPERATIONS DATA:
Net revenues......................................... $25,073 $39,006 $ 51,972 $129,483 $224,902 $156,489 $259,976
Gross profit......................................... 14,129 20,019 23,422 67,100 126,135 87,356 148,463
------- ------- -------- -------- -------- -------- --------
Operating income (loss).............................. (5,409) (2,762) (19,999) 15,452 41,735 29,899 46,112
------- ------- -------- -------- -------- -------- --------
Income (loss) before provision for income taxes...... (5,304) (1,490) (18,926) 16,370 43,333 30,986 50,786
------- ------- -------- -------- -------- -------- --------
Net income (loss).................................... $(5,316) $(1,598) $(19,097) $ 14,621 $ 29,717 $21,618 $ 32,524
======= ======= ======== ======== ======== ======== ========
Net income (loss) per share:
Basic................................................ $ (0.54) $ (0.05) $ (0.44) $ 0.25 $ 0.43 $ 0.33 $ 0.44
======= ======= ======== ======== ======== ======== ========
Diluted.............................................. $ (0.54) $ (0.05) $ (0.44) $ 0.20 $ 0.38 $ 0.28 $ 0.39
======= ======= ======== ======== ======== ======== ========
Weighted average shares outstanding:
Basic.............................................. 9,780 29,979 43,369 58,012 68,707 64,784 73,154
Diluted............................................ 9,780 29,979 43,369 71,609 77,849 77,122 82,709
</TABLE>
<TABLE>
<CAPTION>
AS OF
SEPTEMBER 30, 2000
-------------------
(IN THOUSANDS)
<S> <C>
CONSOLIDATED BALANCE SHEET DATA:
Cash, cash equivalents and short-term investments........... $269,014
Working capital............................................. 325,951
Total assets................................................ 477,413
Total stockholders' equity.................................. 397,484
</TABLE>
<PAGE>
COMPARATIVE HISTORICAL AND PRO FORMA PER SHARE DATA
OF POLYCOM, INC. AND ACCORD NETWORKS LTD.
The following table presents certain unaudited historical per share and
combined pro forma per share data of Polycom and Accord after giving effect
to the merger using the pooling-of-interests method of accounting. The
equivalent Accord per share data is calculated based on an exchange ratio of
0.3065 of a share of Polycom common stock for each Accord ordinary share
outstanding. The pro forma data does not purport to be indicative of the
results of future operations or the results that would have occurred had the
merger been consummated at the beginning of the periods presented. The
information set forth below should be read in conjunction with the historical
financial statements and notes thereto of Polycom and Accord included in the
Registration Statement on Form S-4, as amended, filed by Polycom, Inc. with
the Securities and Exchange Commission on January 9, 2001 and incorporated by
reference, and the selected unaudited pro forma condensed combined financial
data included elsewhere in this document. All share information has been
restated, as applicable, for stock splits, as discussed in each entity's
respective consolidated financial statements and notes thereto. The unaudited
pro forma combined and unaudited pro forma equivalent per share data combine
the results of operations of Polycom for each of the three years ended
December 31, 1999 with the results of operations of Accord for each of the
three years ended December 31, 1999, respectively, the results of operations
of each of Polycom and Accord for the nine months ended September 30, 2000,
and Polycom's financial position at December 31, 1999 and September 30, 2000
with Accord's financial position at December 31, 1999 and September 30, 2000,
respectively. No cash dividends have ever been declared or paid on Polycom
common stock or Accord ordinary shares.
POLYCOM
<TABLE>
<CAPTION>
NINE MONTHS
FISCAL YEAR ENDED ENDED
DECEMBER 31, SEPTEMBER 30,
------------------------------ -------------
1997 1998 1999 2000
-------- -------- -------- -------------
<S> <C> <C> <C> <C>
Historical per common share data:
Income (loss) per diluted share........................... $(0.33) $0.23 $0.40 $0.48
Net book value per share(1)............................... $1.65 $4.43
</TABLE>
ACCORD
<TABLE>
<CAPTION>
NINE MONTHS
FISCAL YEAR ENDED ENDED
DECEMBER 31, SEPTEMBER 30,
------------------------------ -------------
1997 1998 1999 2000
-------- -------- -------- -------------
<S> <C> <C> <C> <C>
Historical per ordinary share data:
Income (loss) per diluted share........................... $(3.92) $(0.77) $ 0.02 $(0.57)
Net book value per share(1)............................... $(6.72) $ 3.16
</TABLE>
<PAGE>
POLYCOM AND ACCORD
<TABLE>
<CAPTION>
NINE MONTHS
FISCAL YEAR ENDED ENDED
DECEMBER 31, SEPTEMBER 30,
------------------------------ -------------
1997 1998 1999 2000
-------- -------- -------- -------------
<S> <C> <C> <C> <C>
Combined pro forma per common share data:
Income (loss) per combined company's diluted share(2)..... $(0.44) $0.20 $0.38 $0.39
Income (loss) from per equivalent Accord diluted
share(3)................................................ $(0.13) $0.06 $0.12 $0.12
Net book value per combined company's share(1)............ $1.74 $4.89
Net book value per equivalent Accord share(3)............. $0.53 $1.50
</TABLE>
------------------------------
(1) The historical book value per Polycom share is computed by dividing assets
less liabilities by the number of shares of common stock outstanding at
September 30, 2000 and at Polycom's fiscal year end. The historical book
value per Accord share is computed by dividing assets less liabilities and
less mandatorily redeemable preferred stock by the number of ordinary shares
outstanding at September 30, 2000 and at Accord's fiscal year end. The pro
forma combined book value per share is computed by dividing the pro forma
assets less liabilities by the pro forma number of shares of Polycom common
stock outstanding as of September 30, 2000 and at fiscal year end, assuming
the merger had occurred as of these dates.
(2) The pro forma combined shares used in this calculation are equal to Accord's
weighted average ordinary shares and, where applicable, potential ordinary
shares outstanding multiplied by the 0.3065 exchange ratio, plus Polycom's
weighted average common and equivalent shares outstanding.
(3) The shares used in this calculation are equal to the pro forma combined
shares described in footnote (2) divided by the 0.3065 exchange ratio.
