Polycom Inc., maker of video conferencing products, on Wednesday said its Q2 net income fell to $15.3 million from $17.8 million, but surpassed Wall Street forecasts as improved demand across markets in commercial and public sectors boosted the earnings.

The company has been helped by the gloomy economy, where companies cut back on travel, videoconferencing is viewed as a cost-effective option.

With contracts from French retail group Auchan, UK office space provider Regus and law firm Perkins Coie bagged in Q2 alone, Polycom managed a 3 percent Q-o-q growth in its video products, amounting to $161.7 million.

However Voice communications remained unchanged at $69 million.

Polycom recorded sequential revenue growth in North American and Asia, while revenue from Europe fell.

Excluding items, it earned 29 cents per share, beating market estimates by a penny.

Its revenue fell 15 percent to $230.7 million.

Polycom shares rose 4 percent to $22.71 in trading and closed at $21.75 Wednesday on Nasdaq.