Premiere Global Services Revenues Down 4% Y/Y

Oppenheimer has published a research report on Premiere Global Services PGI following the company's 3Q earnings results, which seem to suggest more possible virtual meetings opportunities. In the report, Oppenheimer writes "PGI reported largely better than expected 3Q results, as business trends appear to be stabilizing. Concurrently, PGI announced the sale of the PGiSend messaging business, which should allow the firm to focus resources on core IP communications business and improve financial flexibility/balance sheet strength. However, we would note that there should be near-term margin impact, as this business (~25% of revenue) features higher margins. Within the core conferencing business, trends appear stable, particularly within enterprise customers (though SMBs remain challenged). Further, management expects revenue/business day to tick up in 4Q. Positively, the iMeet beta has received substantial positive feedback, and should result in long-term growth opportunities." Oppenheimer maintains its Outperform rating and has lowered the price target to $9. Premiere Global Services closed yesterday at $7.18.