Dear Fellow Shareholders,

2012 was another record year for PGi. We are very proud of the great strides we made to advance our strategic and financial goals last year, and we are grateful to our shareholders, employees, partners and customers for their continuing support and commitment to our success.

For over 20 years, PGi has innovated collaboration technologies to help people meet in more meaningful and productive ways. Along the way, we have helped tens-of-thousands of companies—from nearly every industry vertical and region of the world—be more connected, competitive and successful.

Today, our 1,800 associates serve over 40,000 customers worldwide with a dedication to providing simple, personal and mobile collaboration solutions and the best customer care in the industry. Through our commitment to product innovation and our laser-focus on providing the best possible user experience, PGi continues to lead the market into an exciting new era of collaboration.

PGi continues to lead the market into an exciting new era of collaboration.

Our Unique

PERSPECTIVE

Since our founding in 1991, PGi has experienced an amazing evolution of our company vision, unique perspectives and culture.

Over the past two decades, PGi has transformed into a true global leader in virtual meetings—trusted by many of the largest, most discriminating buyers of technology services in the world for their mission-critical daily collaboration needs.

As we continue innovating and evolving our company to remain relevant in the fast-changing world of technology, our vision, mission and core values provide a vibrant foundation upon which our future will grow.

VISION

We provide collaboration services to the world for the shaping and advancement of ideas.

MISSION

We are dedicated to bringing the best virtual collaboration experience to each and every business professional around the world through our product innovation, our global network and our extraordinary customer care.

CORE VALUES

POSITIVITY. We value positive leadership and the commitment to inspire and empower those we interact with each day.

RESPONSIBILITY. We value acting with integrity, personal accountability and a sense of urgency.

HUMILITY. We value leading others with mutual respect, an open mind and an eagerness to learn.

CREATIVITY. We value creativity and encourage a passionate spirit of innovation and a devotion to improving the status quo.

SUSTAINABILITY. We value operating PGi to endure as a market leader, with a commitment to social responsibility, corporate philanthropy and individual volunteerism.

Our customers are at the heart of everything we do, driving not only our product innovation, but also forming the very core of our company philosophy.

PGi’s continued focus on delivering a world-class customer care experience expanded into the digital world in 2012, with the establishment of two new, state-of-the-art customer care communities.

The iMeet® Community and the GlobalMeet® Community are dedicated to fostering near-instantaneous customer support, enabling heightened operational efficiencies across regions, improving customer service margins, driving market awareness through online search and further establishing PGi as the thought leader and innovator in the collaboration market. The communities provide a user-defined forum for getting questions answered, sharing best practices and learning more about how to drive business goals through better meetings.

THE FUTURE

OF COLLABORATION

The way in which people meet and collaborate continues to change, supported by significant advances in communications technology and evolving user demands.

In today’s modern workplace, more people are mobile and working remotely than ever before. As a result, business collaboration is quickly moving towards an always-available, highly mobile environment, where the same productive meeting experience is expected simply everywhere—regardless of the user’s location or preferred device. At the same time, business collaboration is increasingly occurring in near-time venues, such as social networks and social business platforms, team workspaces, file sharing and collaboration sites and unified communications applications, to name a few.

While the way people collaborate continues to evolve, one thing is constant: good things happen when people meet. As global leaders in business collaboration, PGi is committed to continuing to stay ahead of the changing needs of our customers.

PGi has identified several industry trends that are shaping our market—and our market strategy—today, including those highlighted in our recent eBook: The Future of Business Collaboration.

TECHNOLOGY POWERS THE MOBILE WORKER

OUR

PRODUCTS

Over the last few years, PGi has built an internal expertise in software application development.

We believe PGi's ability to lead the market in highly differentiated collaboration products will continue to be a significant competitive advantage for us.

Our PGi software applications—iMeet®, GlobalMeet® and GlobalMeet® Audio—were developed specifically to address a large void in the market for meeting products that are highly usable and available everywhere. We built these products on top of our global IP network, which we believe is the most advanced private cloud network in the industry.

Our overriding goal is to develop enterprise-ready collaboration products that delight users with the best experience on the market—delivered directly to users where they are, regardless of their location, platform or device.

iMeet was designed to be the most versatile and engaging online meeting product on the market, with technologies like HD video, cloud file storage and more that let users meet face-to-face online from anywhere, anytime, on any device.

iMEET + PLANTRONICS®.
With the integration of the Plantronics Voyager Legend™ headset, iMeet virtual meetings are more natural and intuitive than ever before.
iMEET MOBILE.
iMeet mobile apps for iPhone®, iPad®, Android® phones and BlackBerry® help you meet when you’re on the go.
EASY-TO-USE INTERFACE.
iMeet’s intuitive design make virtual collaboration as simple as possible.
SCREEN SHARING.
iMeet guests can see exactly what you want in the highest quality possible.

BEST NEW PRODUCT

“iMEET HAS SUCCEEDED WHERE MANY OTHERS HAVE FAILED.”

“A WONDERFUL CONVERGENCE OF USABILITY, RESPONSIVENESS AND CONNECTIVITY.”

“iMEET PROMISES WHAT YOU WANT MOST IN A VIDEO CONFERENCE OR WEB MEETING—RELIABILITY.”

GlobalMeet was designed and built to be the easiest to use, most intuitive web conferencing product on the market, with a simple-to-navigate user interface, scalability for large group meetings and easy access from the desktop, web, tablets and mobile devices.

GLOBALMEET MOBILE.
GlobalMeet mobile apps for iPhone®, iPad® and BlackBerry® help you meet when you’re on the go.
GLOBALMEET FOR PC/Mac.
Schedule, start, join and manage meetings right from your desktop. GlobalMeet also has a toolbar for Microsoft Office Outlook®.
CALL MY COMPUTER.
Connect with meeting participants via GlobalMeet’s global Voice-over-IP capabilities.
CONTENT LIBRARY.
Upload, manage and share presentations, images and documents right inside the meeting.

“EASY TO USE INTUITIVE INTERFACE WITH EVERYTHING YOU NEED FOR AUDIO AND WEB CONFERENCING.”

“INTERACTIVE AND COLLABORATIVE ENGAGEMENT.”

“THE ONLY PRODUCT NECESSARY FOR BUSINESSES TO HOLD MEETINGS.”

GlobalMeet Audio is an easy-to-use audio conferencing application for the desktop, tablet and smartphone. With its convenient visual controls, GlobalMeet Audio makes it easy to schedule, join and manage audio meetings from anywhere in the world.

GLOBALMEET AUDIO MOBILE.
Managing conference calls from your mobile device has never been easier with apps for iPhone® and BlackBerry®.
GLOBALMEET AUDIO DESKTOP APP.
Schedule, start, join and manage GlobalMeet Audio conferences right on your desktop.

iMeet was designed to be the most versatile and engaging online meeting product on the market, with technologies like HD video, cloud file storage and more that let users meet face-to-face online from anywhere, anytime, on any device.

iMEET + PLANTRONICS®.
With the integration of the Plantronics Voyager Legend™ headset, iMeet virtual meetings are more natural and intuitive than ever before.
iMEET MOBILE.
iMeet mobile apps for iPhone®, iPad®, Android® phones and BlackBerry® help you meet when you’re on the go.
EASY-TO-USE INTERFACE.
iMeet’s intuitive design make virtual collaboration as simple as possible.
SCREEN SHARING.
iMeet guests can see exactly what you want in the highest quality possible.
BEST NEW PRODUCT
“iMEET HAS SUCCEEDED WHERE MANY OTHERS HAVE FAILED.”
“A WONDERFUL CONVERGENCE OF USABILITY, RESPONSIVENESS AND CONNECTIVITY.”
“iMEET PROMISES WHAT YOU WANT MOST IN A VIDEO CONFERENCE OR WEB MEETING—RELIABILITY.”

GlobalMeet was designed and built to be the easiest to use, most intuitive web conferencing product on the market, with a simple-to-navigate user interface, scalability for large group meetings and easy access from the desktop, web, tablets and mobile devices.

GLOBALMEET MOBILE.
GlobalMeet mobile apps for iPhone®, iPad® and BlackBerry® help you meet when you’re on the go.
GLOBALMEET FOR PC/Mac.
Schedule, start, join and manage meetings right from your desktop. GlobalMeet also has a toolbar for Microsoft Office Outlook®.
CALL MY COMPUTER.
Connect with meeting participants via GlobalMeet’s global Voice-over-IP capabilities.
CONTENT LIBRARY.
Upload, manage and share presentations, images and documents right inside the meeting.
“EASY TO USE INTUITIVE INTERFACE WITH EVERYTHING YOU NEED FOR AUDIO AND WEB CONFERENCING.”
“INTERACTIVE AND COLLABORATIVE ENGAGEMENT.”
“THE ONLY PRODUCT NECESSARY FOR BUSINESSES TO HOLD MEETINGS.”

GlobalMeet was designed and built to be the easiest to use, most intuitive web conferencing product on the market, with a simple-to-navigate user interface, scalability for large group meetings and easy access from the desktop, web, tablets and mobile devices.

GLOBALMEET AUDIO MOBILE.
Managing conference calls from your mobile device has never been easier with apps for iPhone® and BlackBerry®.
GLOBALMEET AUDIO DESKTOP APP.
Schedule, start, join and manage GlobalMeet Audio conferences right on your desktop.

AWARDS

AND ACCOLADES

We are very proud that our leadership team, innovative products and unique global culture were recognized with multiple prestigious industry awards and accolades in 2012.

  • BEST NEW PRODUCT: iMEET®
  • TOP 250 INNOVATORS OF THE YEAR: PGi
  • EXECUTIVE OF THE YEAR: BOLAND T. JONES
  • TECHNOLOGY EXECUTIVE OF THE YEAR: DAVID GUTHRIE
  • EXECUTIVE OF THE YEAR: BOLAND T. JONES
  • FEMALE EXECUTIVE OF THE YEAR: TAMMY HAMMOND
  • COMMUNICATIONS PROFESSIONAL OF THE YEAR: CORA RODENBUSCH
  • PRODUCT DEVELOPMENT/ MANAGEMENT EXECUTIVE OF THE YEAR: DAVID GUTHRIE
  • PRODUCT DEVELOPMENT/ MANAGEMENT EXECUTIVE OF THE YEAR: DAVID GUTHRIE
  • COMMUNICATIONS PROFESSIONAL OF THE YEAR: CORA RODENBUSCH
  • MOST INNOVATIVE COMPANY OF THE YEAR: PGi
  • MAVERICK OF THE YEAR: BOLAND T. JONES
  • PRODUCT DEVELOPMENT/ MANAGEMENT EXECUTIVE OF THE YEAR: DAVID GUTHRIE
  • CHANNEL PARTNERS TOP 50 CHANNEL PROGRAM: PGi
  • ONE OF AMERICA'S BEST ADOPTION FRIENDLY WORKPLACES: PGi
BEST NEW PRODUCT: iMEET®
TOP 250 INNOVATORS OF THE YEAR: PGi
EXECUTIVE OF THE YEAR: BOLAND T. JONES
TECHNOLOGY EXECUTIVE OF THE YEAR: DAVID GUTHRIE
EXECUTIVE OF THE YEAR: BOLAND T. JONES
FEMALE EXECUTIVE OF THE YEAR: TAMMY HAMMOND
COMMUNICATIONS PROFESSIONAL OF THE YEAR: CORA RODENBUSCH
PRODUCT DEVELOPMENT/ MANAGEMENT EXECUTIVE OF THE YEAR: DAVID GUTHRIE
PRODUCT DEVELOPMENT/ MANAGEMENT EXECUTIVE OF THE YEAR: DAVID GUTHRIE
COMMUNICATIONS PROFESSIONAL OF THE YEAR: CORA RODENBUSCH
MOST INNOVATIVE COMPANY OF THE YEAR: PGi
MAVERICK OF THE YEAR: BOLAND T. JONES
PRODUCT DEVELOPMENT/ MANAGEMENT EXECUTIVE OF THE YEAR: DAVID GUTHRIE
CHANNEL PARTNERS TOP 50 CHANNEL PROGRAM: PGi
ONE OF AMERICA'S BEST ADOPTION FRIENDLY WORKPLACES: PGi

FINANCIAL

PERFORMANCE

2012 was the first full year that we offered our PGi software products in the market. It’s clear to us that our emphasis on selling these highly differentiated solutions has already made a positive difference in our financial performance.

2012 Highlights:

Reported our highest annual organic revenue growth (3) in four years, with organic revenue increasing 7.5% as compared to 2011;

Grew revenue across all of our PGi product lines and in all regions;

Reported nearly 18% growth in non-GAAP diluted EPS from continuing operations (1, 2) as compared to 2011;

Grew total meetings hosted by nearly 30% as compared to 2011;

More than doubled the revenue run-rate from iMeet® and GlobalMeet®, exiting 2012 with an annual revenue run-rate of nearly $23 million from these solutions;

Announced a multi-year, multi-million dollar strategic alliance with Deutsche Telekom®, naming the integrated telecommunications company as the exclusive reseller of iMeet in Germany;

Announced a multi-year strategic alliance with eircom®, Ireland’s leading provider of fixed and mobile telecommunications, which will offer PGi’s entire suite of conferencing solutions, including iMeet and GlobalMeet, to its business customers;

Established a new open market share repurchase program for up to 5 million shares of our common stock; and

Repurchased nearly 3.2 million shares of common stock in the open market under our prior share repurchase plan.

2012 FINANCIAL DETAILS

In 2012, we hosted 62 million meetings—nearly 30% growth from 2011.

Number of meetings in millions

Year-over-year revenue growth from continuing operations, adjusted for constant currency and acquisitions

Organic revenue growth(3) trends

Our stock outperformed many of the major market indices in 2012.

Comparison of 1-year cumulative total return*

*This illustration shows the TSR of our common stock or the applicable index for fiscal year 2012 and assumes an investment of $100 on December 31, 2011, including reinvestment of dividends. The stock price performance in this graph is not necessarily indicative of the future performance of our common stock. Total return calculations were prepared by the Research Data Group.

PGi Financial Results Highlights

2012
(in millions)
2011
(in millions)
GROWTH
Net revenues $505,281 $473,834 7%
GAAP operating income 41,426 39,956 15%
Non-GAAP operating income(1) 57,327 51,223 12%
GAAP diluted EPS from continuing operations 0.58 0.34 71%
Non-GAAP diluted EPS from continuing operations(1, 2) 0.73 0.62 18%
Net cash provided by operating activities from continuing operations 70,521 58,729 20%

In 2012, we hosted 62 million meetings—nearly 30% growth from 2011.

Number of meetings in millions

Year-over-year revenue growth from continuing operations, adjusted for constant currency and acquisitions

Organic revenue growth(3) trends

Our stock outperformed many of the major market indices in 2012.

Comparison of 1-year cumulative total return*

*This illustration shows the TSR of our common stock or the applicable index for fiscal year 2012 and assumes an investment of $100 on December 31, 2011, including reinvestment of dividends. The stock price performance in this graph is not necessarily indicative of the future performance of our common stock. Total return calculations were prepared by the Research Data Group.

PGi Financial Results Highlights

2012
(in millions)
2011
(in millions)
GROWTH
Net revenues $505,281 $473,834 7%
GAAP operating income 41,426 39,956 15%
Non-GAAP operating income(1) 57,327 51,223 12%
GAAP diluted EPS from continuing operations 0.58 0.34 71%
Non-GAAP diluted EPS from continuing operations(1, 2) 0.73 0.62 18%
Net cash provided by operating activities from continuing operations 70,521 58,729 20%

THE YEAR

AHEAD

Over the last few years, PGi has proven that we can build, bring to market and sell world-class business collaboration software applications. Now, our focus shifts to accelerating our growth, upgrading and expanding our product portfolio and improving our customer experience.

Our key priorities for 2013 include:

ENHANCE AND EXPAND OUR PRODUCT PORTFOLIO TO CAPITALIZE ON EXISTING AND NEW MARKET OPPORTUNITIES. In the year ahead, we will continue our focus on growing PGi's share of both current and new emerging markets through our continued investment in product development. Toward this objective, we plan to launch significant feature enhancements and upgrades to both iMeet® and GlobalMeet® this year—while at the same time expanding our suite of PGi software products.

Expand our offerings to meet the demand for personal business communications, including ad hoc meetings, peer-to-peer video chat, team collaboration and large format meetings.

Expand the web and audio meeting capacity to penetrate the webinar and training markets.

WEBCASTING

Launch a new product to revolutionize the webcasting event market, with a goal of making this traditionally expensive and cumbersome offering as simple as launching a web browser and affordable for any sized business.

EXPAND OUR GLOBAL DISTRIBUTION IN SUPPORT OF HIGHER GROWTH. We believe our success with both our direct sales and carrier partner efforts in 2012 validates that iMeet, GlobalMeet and GlobalMeet Audio are filling a real need in the market. In 2013, we plan to continue to add new PGi direct sales headcount, new agents and resellers, new marketing alliances and new strategic partners to greatly increase our global distribution and to drive new sales opportunities.

IMPROVE OUR FINANCIAL PERFORMANCE. We are focused on continuing to transition our model toward higher growth and increased profitability by emphasizing sales of our PGi software solutions—in both new and existing customer opportunities. While it is too early to declare an inflection point in our current, mid-single-digit growth trajectory, we are continuing to execute our plan to return PGi to higher growth rates and improved margins.

CONTINUE OUR FOCUS ON DELIVERING A WORLD-CLASS CUSTOMER EXPERIENCE. Our PGi software products are designed to provide better, more enjoyable experiences for our users. We will continue to develop products with the specific intent of delighting our users, while continuing to meet the increasing demands of the buyers of our services. At the same time, we are focused on delivering superior operational quality, with market-leading uptimes and service excellence.

THE GREATER

GOOD

Building on PGi’s corporate philosophy and values, we are pleased to launch a new Corporate Social Responsibility program in 2013, aimed at maximizing the impact of our corporate philanthropy, employee volunteerism and global sustainability practices.

The leadership team of PGi is committed to being responsible corporate citizens, serving the communities where our associates live and work and where our customers call home. Through our charitable sponsorships, in-kind donations of technology, social outreach and the individual volunteer efforts of our associates around the world, PGi strives to diligently support and empower diverse charitable projects around the globe.

JUNIOR ACHIEVEMENT®. PGi is proud to actively support JA BizTown®, which helps elementary and middle school students connect the dots between what they learn in school and the real world.

BERT’S BIG ADVENTURE®. PGi is a proud sponsor of Bert’s Big Adventure, a non-profit organization helping to change the lives of children with chronic or terminal illnesses.

YEAR UP ATLANTA. PGi is honored to support Year Up Atlanta, which helps low-income young adults develop into successful businesspeople.

AMERICAN CANCER SOCIETY®. PGi is a major supporter of the American Cancer Society and Relay for Life.

1 2 3 4
CLOSE

JUNIOR ACHIEVEMENT®. PGi is proud to actively support JA BizTown®, which helps elementary and middle school students connect the dots between what they learn in school and the real world.

BERT’S BIG ADVENTURE®. PGi is a proud sponsor of Bert’s Big Adventure, a non-profit organization helping to change the lives of children with chronic or terminal illnesses.

YEAR UP ATLANTA. PGi is honored to support Year Up Atlanta, which helps low-income young adults develop into successful businesspeople.

AMERICAN CANCER SOCIETY®. PGi is a major supporter of the American Cancer Society and Relay for Life.

A FINAL NOTE OF

THANKS

Boland T. Jones

FOUNDER, CHAIRMAN & CEO

2012 was a year of growth and great success for PGi. We are pleased with the progress we made on both the financial and strategic fronts, as we continued to advance our mission to bring the best virtual collaboration experience to business professionals around the world.

As we look ahead, we remain excited about the opportunities available in today’s evolving global marketplace for PGi and our products. We believe our focused vision, mission and strategy, powered by our invaluable employees and partners, will enable our company to be leaders in business collaboration software.

Thank you, our valued shareholders, for your continued support. We also extend our sincerest gratitude to our 1,800-plus dedicated PGi employees and our customers worldwide, who honor us with their trust, their confidence and their commitment to our success.

Sincerely,

This annual report
contains forward-looking
statements within the meaning
of the federal securities laws.
Please refer to the Risk Factors
section of our Annual Report on
Form 10-K for the year ended
December 31, 2012, for a
description of such
forward-looking
statements.