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Plantronics Announces Fourth Quarter & Record Fiscal Year 2013 Results



  Plantronics Announces Fourth Quarter & Record Fiscal Year 2013 Results

Revenue Exceeds and Earnings per Share Meets Guidance; Unified Communications
                     Net Revenues Grow 36% Year-over-Year

Business Wire

SANTA CRUZ, Calif. -- May 07, 2013

Plantronics, Inc. (NYSE: PLT) today announced fourth quarter and fiscal year
2013 results. Highlights of the quarter include the following (comparisons are
against the fourth quarter of fiscal year 2012):

  * Net revenues were $204.2 million, an increase of 15% compared with $177.6
    million.
  * GAAP gross margin was 52.0% compared with 53.6%; non-GAAP gross margin was
    52.3% compared with 53.9%.
  * GAAP operating income was $36.9 million; non-GAAP operating income was
    $41.9 million as compared to $32.0 million and $36.2 million,
    respectively.
  * GAAP diluted earnings per share (“EPS”) was $0.67, an increase of $0.12,
    or 22%, and within our guidance of $0.63 to $0.67.
  * Non-GAAP diluted EPS was $0.71, an increase of $0.09, or 15%, and within
    our guidance of $0.68 to $0.72.

 
Q4 GAAP Results
                                                    
                   Q4 2013          Q4 2012          Change (%)
Net revenues       $204.2 million   $177.6 million   15.0%
Operating income   $36.9 million    $32.0 million    15.3%
Operating Margin   18.1%            18.0%
Diluted EPS        $0.67            $0.55            21.8%
                                                      
Q4 Non-GAAP Results
                                                      
                   Q4 2013          Q4 2012          Change (%)
Operating income   $41.9 million    $36.2 million    15.7%
Operating Margin   20.5%            20.4%
Diluted EPS        $0.71            $0.62            14.5%
                                                      

Net revenues for fiscal year 2013 increased 7% to $762.2 million compared with
$713.4 million for fiscal year 2012. Our GAAP diluted EPS increased by 3% to
$2.49 for fiscal year 2013 compared with $2.41 in fiscal year 2012. Non-GAAP
diluted EPS for fiscal year 2013 increased by 5% to $2.77 compared with $2.65
in fiscal year 2012. The difference between GAAP and non-GAAP EPS for fiscal
year 2013 consists of stock-based compensation charges, restructuring and
other related charges, all net of the associated tax impact, a tax benefit
from the expiration of certain statutes of limitations, and the retroactive
reinstatement of the U.S. federal R&D tax credit related to calendar year
2012.

A reconciliation between our GAAP and non-GAAP results is provided in the
tables at the end of this press release.

“Our fiscal year revenues and earnings per share set records as we experienced
continued growth in the Unified Communications (“UC”) market throughout the
year. In the fourth quarter we experienced strong demand from China for
Bluetooth headsets as a result of their recent enforcement of their previously
enacted hands-free driving law, and some rebound in the global economy,” said
Ken Kannappan, President & CEO (currently on a temporary medical leave).
“Unified Communications (“UC”) momentum continues to build and it remains our
largest growth opportunity.”

“We generated approximately $32 million in cash flow from operations in the
fourth quarter of fiscal year 2013 and approximately $126 million for the full
fiscal year. We grew our cash, cash equivalents and short and long term
investments position to approximately $426 million while paying off our line
of credit,” said Pam Strayer, Acting Chief Executive Officer, Senior Vice
President and Chief Financial Officer.

OCC net revenues increased 9% to $142.7 million compared with $131.0 million
in the fourth quarter of fiscal year 2012 driven by the strength of our UC
revenues. Net revenues from UC products, a subset of OCC, grew by 36% to $36.9
million in the fourth quarter of fiscal year 2013 compared with $27.1 million
in the fourth quarter of fiscal year 2012.

Mobile net revenues were $49.9 million in the fourth quarter of fiscal year
2013, an increase of 41% from $35.3 million in the fourth quarter of fiscal
year 2012 primarily as a result of strong demand related to the enforcement of
the hands free driving law in China beginning in January 2013.

Dividend Announcement

We also announced that our Board of Directors declared a quarterly dividend of
$0.10 per share. The dividend will be payable on June 10, 2013 to stockholders
of record at the close of business on May 20, 2013.

Business Outlook

The following statements are based on our current expectations and many of
these statements are forward-looking. Actual results are subject to a variety
of risks and uncertainties and may differ materially from our expectations.

We have a “book and ship” business model whereby we fulfill the majority of
orders received within 48 hours of receipt of those orders. However, our
backlog is occasionally subject to cancellation or rescheduling by our
customers on short notice with little or no penalty. Therefore, the level of
backlog does not provide reliable visibility into potential future revenues.

Our business is inherently difficult to forecast, particularly with continuing
uncertainty in global economic conditions, and there can be no assurance that
expectations of incoming orders over the balance of the current quarter will
materialize.

Subject to the foregoing, we currently expect the following range of financial
results for the first quarter of fiscal year 2014:

  * Net revenues of $198 million to $205 million;
  * GAAP operating income of $33 million to $37 million;
  * Non-GAAP operating income of $40 million to $44 million, excluding the
    impact of $7 million from stock-based compensation, accelerated
    depreciation, and restructuring costs from GAAP operating income;
  * Assuming approximately 43.8 million diluted average weighted shares
    outstanding:

       * GAAP diluted EPS of $0.56 to $0.62;
       * Non-GAAP diluted EPS of $0.68 to $0.74; and
       * Cost of stock-based compensation, accelerated depreciation and
         restructuring costs to be approximately $0.12 per diluted share.

Please see our new Investor Relations Presentation available on our corporate
website at www.plantronics.com/ir.

Conference Call Scheduled to Discuss Financial Results

We have scheduled a conference call to discuss fourth quarter and full year
fiscal year 2013 results. The conference call will take place today, May 7,
2013, at 2:00 PM (Pacific Time). All interested investors and potential
investors in our stock are invited to participate. To listen to the call,
please dial in five to ten minutes prior to the scheduled starting time and
refer to the “Plantronics Conference Call.” Participants from North America
should call (888) 301-8736 and other participants should call (706) 634-7260.

A replay of the call with the conference ID # 31670407 will be available until
June 7, 2013 at (855) 859-2056 or (800) 585-8367 for callers from North
America and at (404) 537-3406 for all other callers. The conference call will
also be simultaneously webcast in the Investor Relations section of our
corporate website at www.plantronics.com/ir, and the webcast of the conference
call will remain available on our website for one month.

Use of Non-GAAP Financial Information

For the periods presented, we have excluded certain non-cash expenses and
charges, net of tax, including stock-based compensation related to stock
options, restricted stock and employee stock purchases, purchase accounting
amortization, accelerated depreciation, restructuring and other related
charges, and the retroactive reinstatement of the R&D tax credit, along with
the tax benefits from the expiration of certain statutes of limitations from
non-GAAP operating income, non-GAAP operating margin and non-GAAP diluted EPS.
We exclude these expenses from our non-GAAP measures primarily because
management does not consider them as part of our target operating model. We
believe that the use of non-GAAP financial measures provides meaningful
supplemental information regarding our performance and liquidity and helps
investors compare actual results to our long-term target operating model
goals. We believe that both management and investors benefit from referring to
these non-GAAP financial measures in assessing our performance and when
planning, forecasting and analyzing future periods; however, non-GAAP
financial measures are not meant to be considered in isolation or as a
substitute for, or superior to, gross margin, operating income, operating
margin, the effective tax rate, net income, or EPS prepared in accordance with
GAAP.

Safe Harbor

This release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements relating to
(i) our estimates of GAAP and non-GAAP financial results for the first quarter
of fiscal year 2014, including net revenues, operating income and diluted EPS;
(ii) our estimates of stock-based compensation, accelerated depreciation,
restructuring and other related charges, and tax benefits from the expiration
of certain statutes of limitation, as well as the impact of these non-cash
expenses on Non-GAAP operating income and diluted EPS; and (iii) our estimate
of weighted average shares outstanding for the first quarter of fiscal year
2014, in addition to other matters discussed in this press release that are
not purely historical data. We do not assume any obligation to update or
revise any such forward-looking statements, whether as the result of new
developments or otherwise.

Forward-looking statements involve risks and uncertainties that may cause
actual results to differ materially from those contemplated by such
statements. Among the factors that could cause actual results to differ
materially from those contemplated are:

  * Micro and macro economic conditions in our domestic and international
    markets;
  * our ability to realize our UC plans and to achieve the financial results
    projected to arise from UC adoption could be adversely affected by a
    variety of factors including the following: (i) as UC becomes more widely
    adopted, the risk that competitors will offer solutions that will
    effectively commoditize our headsets which, in turn, will reduce the sales
    prices for our headsets; (ii) our plans are dependent upon adoption of our
    UC solution by major platform providers and strategic partners such as
    Microsoft Corporation, Cisco Systems, Inc., Avaya, Inc., Alcatel-Lucent,
    and IBM, and we have a limited ability to influence such providers with
    respect to the functionality of their platforms or their product
    offerings, their rate of deployment, and their willingness to integrate
    their platforms and product offerings with our solutions, and our support
    expenditures may substantially increase over time due to the complex
    nature of the platforms and product offerings developed by the major UC
    providers as these platforms and product offerings continue to evolve and
    become more commonly adopted; (iii) the development of UC solutions is
    technically complex and this may delay or limit our ability to introduce
    solutions to the market on a timely basis and that are cost effective,
    feature rich, stable and attractive to our customers on a timely basis;
    (iv) our development of UC solutions is dependent on our ability to
    implement and execute new and different processes in connection with the
    design, development and manufacturing of complex electronic systems
    comprised of hardware, firmware and software that must work in a wide
    variety of environments and multiple variations, which may in some
    instances increase the risk of development delays or errors and require
    the hiring of new personnel and/or fourth party contractors which
    increases our costs; (v) because UC offerings involve complex integration
    of hardware and software with UC infrastructure, our sales model and
    expertise will need to continue to evolve; (vi) as UC becomes more widely
    adopted we anticipate that competition for market share will increase, and
    some competitors may have superior technical and economic resources; (vii)
    UC solutions may not be adopted with the breadth and speed in the
    marketplace that we currently anticipate; and, (viii) UC may evolve
    rapidly and unpredictably and our inability to timely and cost-effectively
    adapt to those changes and future requirements may impact our
    profitability in this market and our overall margins;
  * failure to match production to demand given long lead times and the
    difficulty of forecasting unit volumes and acquiring the component parts
    and materials to meet demand without having excess inventory or incurring
    cancellation charges;
  * volatility in prices from our suppliers, including our manufacturers
    located in China, have in the past and could in the future negatively
    affect our profitability and/or market share;
  * fluctuations in foreign exchange rates;
  * with respect to our stock repurchase program, prevailing stock market
    conditions generally, and the price of our stock specifically;
  * the bankruptcy or financial weakness of distributors or key customers, or
    the bankruptcy of or reduction in capacity of our key suppliers;
  * additional risk factors including: interruption in the supply of
    sole-sourced critical components, continuity of component supply at costs
    consistent with our plans, the inherent risks of our substantial foreign
    operations, and problems that might affect our manufacturing facilities in
    Mexico; and
  * seasonality in one or more of our business segments.

For more information concerning these and other possible risks, please refer
to our Annual Report on Form 10-K filed with the Securities and Exchange
Commission on May 25, 2012 and other filings with the Securities and Exchange
Commission, as well as recent press releases. These filings can be accessed
over the Internet at http://www.sec.gov/edgar/searchedgar/companysearch.html.

Financial Summaries

The following related charts are provided:

  * Summary Unaudited Condensed Consolidated Financial Statements
  * Unaudited Reconciliations of GAAP Measures to Non-GAAP Measures
  * Summary of Unaudited Reconciliations of GAAP Measures to Non-GAAP Measures
    and Other Unaudited GAAP Data

About Plantronics

Plantronics is a global leader in audio communications for businesses and
consumers. We have pioneered new trends in audio technology for over 50 years,
creating innovative products that allow people to simply communicate. From
Unified Communication solutions to Bluetooth headsets, we deliver
uncompromising quality, an ideal experience, and extraordinary service.
Plantronics is used by every company in the Fortune 100, as well as 911
dispatch, air traffic control and the New York Stock Exchange. For more
information, please visit www.plantronics.com or call (800) 544-4660.

Plantronics and the logo design are trademarks or registered trademarks of
Plantronics, Inc. The Bluetooth name and the Bluetooth trademarks are owned by
Bluetooth SIG, Inc. and are used by Plantronics, Inc. under license. All other
trademarks are the property of their respective owners.

                                                                    
PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
($ in thousands, except per share data)
                                                                        
UNAUDITED CONSOLIDATED                                                  
STATEMENTS OF OPERATIONS
                                                                        
                                   Three Months Ended      Twelve Months Ended
                                   March 31,               March 31,
                                   2013        2012        2013        2012
                                                                        
Net revenues                     $ 204,179   $ 177,584   $ 762,226   $ 713,368
Cost of revenues                   98,086      82,469      359,045     329,017
Gross profit                       106,093     95,115      403,181     384,351
Gross profit %                     52.0%       53.6%       52.9%       53.9%
                                                                        
Research, development and          20,848      18,278      80,373      69,664
engineering
Selling, general and               47,969      44,824      182,445     173,334
administrative
Restructuring and other            398         -           2,266       -
related charges
Total operating expenses           69,215      63,102      265,084     242,998
Operating income                   36,878      32,013      138,097     141,353
Operating income %                 18.1%       18.0%       18.1%       19.8%
                                                                        
Interest and other income, net     (136)       260         328         1,249
Income before income taxes         36,742      32,273      138,425     142,602
Income tax expense                 8,033       8,387       32,023      33,566
Net income                       $ 28,709    $ 23,886    $ 106,402   $ 109,036
                                                                        
% of net revenues                  14.1%       13.5%       14.0%       15.3%
                                                                        
Earnings per common share:
Basic                            $ 0.68      $ 0.57      $ 2.55      $ 2.48
Diluted                          $ 0.67      $ 0.55      $ 2.49      $ 2.41
                                                                        
Shares used in computing
earnings per common share:
Basic                              42,104      42,222      41,748      44,023
Diluted                            43,119      43,329      42,738      45,265
                                                                        
Effective tax rate                 21.9%       26.0%       23.1%       23.5%
                                                                        

                                                                  
PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
($ in thousands)
                                                                      
                                                                      
UNAUDITED CONSOLIDATED BALANCE SHEETS                                 
                                                                      
                                                       March 31,     March 31,
                                                       2013          2012
ASSETS
Cash and cash equivalents                            $ 228,776     $ 209,335
Short-term investments                                 116,581       125,177
Total cash, cash equivalents and short-term            345,357       334,512
investments
Accounts receivable, net                               128,209       111,771
Inventory, net                                         67,435        53,713
Deferred tax assets                                    10,120        11,090
Other current assets                                   15,369        13,088
Total current assets                                   566,490       524,174
Long-term investments                                  80,261        55,347
Property, plant and equipment, net                     99,111        76,159
Goodwill and purchased intangibles, net                16,440        14,388
Other assets                                           2,303         2,402
Total assets                                         $ 764,605     $ 672,470
                                                                      
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable                                     $ 37,067      $ 34,126
Accrued liabilities                                    66,419        52,067
Total current liabilities                              103,486       86,193
Deferred tax liabilities                               1,742         8,673
Long-term income taxes payable                         12,005        12,150
Revolving line of credit                               -             37,000
Other long-term liabilities                            925           1,210
Total liabilities                                      118,158       145,226
Stockholders' equity                                   646,447       527,244
Total liabilities and stockholders' equity           $ 764,605     $ 672,470
                                                                      

                                                                   
PLANTRONICS, INC.
UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES
($ in thousands, except per share data)
                                                                       
UNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS                                               
DATA
                                                                       
                                 Three Months Ended      Twelve Months Ended
                                 March 31,               March 31,
                                 2013        2012        2013         2012
                                                                       
GAAP Gross profit              $ 106,093   $ 95,115    $ 403,181    $ 384,351
Stock-based compensation         391         548         2,020        2,212
Accelerated depreciation         252         -           1,012        -
Purchase accounting              -           -           -            187
amortization
Non-GAAP Gross profit          $ 106,736   $ 95,663    $ 406,213    $ 386,750
Non-GAAP Gross profit %          52.3%       53.9%       53.3%        54.2%
                                                                       
GAAP Research, development     $ 20,848    $ 18,278    $ 80,373     $ 69,664
and engineering
Stock-based compensation         (1,126)     (990)       (4,842)      (3,918)
Accelerated depreciation         (176)       -           (682)        -
Non-GAAP Research,             $ 19,546    $ 17,288    $ 74,849     $ 65,746
development and engineering
                                                                       
GAAP Selling, general and      $ 47,969    $ 44,824    $ 182,445    $ 173,334
administrative
Stock-based compensation         (2,659)     (2,677)     (11,488)     (11,351)
Purchase accounting              -           -           -            (142)
amortization
Non-GAAP Selling, general      $ 45,310    $ 42,147    $ 170,957    $ 161,841
and administrative
                                                                       
GAAP Restructuring and other   $ 398       $ -         $ 2,266      $ -
related charges
                                                                       
GAAP Operating expenses        $ 69,215    $ 63,102    $ 265,084    $ 242,998
Stock-based compensation         (3,785)     (3,667)     (16,330)     (15,269)
Accelerated depreciation         (176)       -           (682)        -
Purchase accounting              -           -           -            (142)
amortization
Restructuring and other          (398)       -           (2,266)      -
related charges
Non-GAAP Operating expenses    $ 64,856    $ 59,435    $ 245,806    $ 227,587
                                                                       

                                                                   
PLANTRONICS, INC.
UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES
($ in thousands, except per share data)
                                                                               
UNAUDITED
CONSOLIDATED
STATEMENTS OF                                                                  
OPERATIONS
DATA
(CONTINUED)
                                                                               
                  Three Months Ended                Twelve Months Ended
                  March 31,                         March 31,
                  2013             2012             2013              2012
                                                                               
GAAP
Operating       $ 36,878         $ 32,013         $ 138,097         $ 141,353
income
Stock-based       4,176            4,215            18,350            17,481
compensation
Accelerated       428              -                1,694             -
depreciation
Purchase
accounting        -                -                -                 329
amortization
Restructuring
and other         398              -                2,266             -
related
charges
Non-GAAP
Operating       $ 41,880         $ 36,228         $ 160,407         $ 159,163
income
                                                                               
GAAP Net        $ 28,709         $ 23,886         $ 106,402         $ 109,036
income
Stock-based       4,176            4,215            18,350            17,481
compensation
Accelerated       428              -                1,694             -
depreciation
Purchase
accounting        -                -                -                 329
amortization
Restructuring
and other         398              -                2,266             -
related
charges
Income tax        (3,251) ^(1)     (1,292) ^(2)     (10,457) ^(3)     (7,094) ^(4)
effect
Non-GAAP Net    $ 30,460         $ 26,809         $ 118,255         $ 119,752
income
                                                                               
GAAP Diluted
earnings per    $ 0.67           $ 0.55           $ 2.49            $ 2.41
common share
Stock-based       0.11             0.10             0.44              0.39
compensation
Accelerated       0.01             -                0.03              -
depreciation
Purchase
accounting        -                -                -                 0.01
amortization
Restructuring
and other         -                -                0.05              -
related
charges
Income tax        (0.08)           (0.03)           (0.24)            (0.16)
effect
Non-GAAP
Diluted         $ 0.71           $ 0.62           $ 2.77            $ 2.65
earnings per
common share
                                                                               
Shares used
in diluted
earnings per      43,119           43,329           42,738            45,265
common share
calculation
                                                                               

       Excluded amount represents tax benefits from stock-based compensation,
^(1)   accelerated depreciation, restructuring and other related charges, and
       $1,835 related to the retroactive reinstatement of the federal R&D tax
       credit.
^(2)   Excluded amount represents tax benefits from stock-based compensation
       and $1,507 from the expiration of certain statutes of limitations.
       Excluded amount represents tax benefits from stock-based compensation,
       accelerated depreciation, restructuring and other related charges,
^(3)   $2,071 related to the expiration of certain statutes of limitations,
       and $1,835 related to the retroactive reinstatement of the federal R&D
       tax credit.
       Excluded amount represents tax benefits from stock-based compensation,
^(4)   purchase accounting amortization, and $1,507 from the expiration of
       certain statutes of limitations.

Use of Non-GAAP Financial Information

For the periods presented, we have excluded certain non-cash expenses and
charges, net of tax, including stock-based compensation related to stock
options, restricted stock and employee stock purchases, purchase accounting
amortization, accelerated depreciation, restructuring and other related
charges, along with tax benefits from the expiration of certain statutes of
limitations and the retroactive reinstatement of the federal R&D tax credit
from non-GAAP operating income, non-GAAP operating margin and non-GAAP diluted
EPS. We exclude these expenses from our non-GAAP measures primarily because
management does not consider them as part of our target operating model. We
believe that the use of non-GAAP financial measures provides meaningful
supplemental information regarding our performance and liquidity and helps
investors compare actual results to our long-term target operating model
goals. We believe that both management and investors benefit from referring to
these non-GAAP financial measures in assessing our performance and when
planning, forecasting and analyzing future periods; however, non-GAAP
financial measures are not meant to be considered in isolation or as a
substitute for, or superior to, gross margin, operating income, operating
margin, the effective tax rate, net income or EPS prepared in accordance with
GAAP.

                                                                                                           
Summary of Unaudited Reconciliations of GAAP Measures to Non-GAAP Measures and other Unaudited GAAP Data
($ in thousands, except per share data)
                                                                   
                Q112         Q212         Q312         Q412         Q113         Q213         Q313          Q413
GAAP Gross      $ 94,058     $ 98,966     $ 96,212     $ 95,115     $ 97,696     $ 97,228     $ 102,164     $ 106,093
profit
Stock-based       546          559          559          548          596          526          507           391
compensation
Accelerated       -            -            -            -            124          318          318           252
depreciation
Purchase
accounting        125          62           -            -            -            -            -             -        
amortization
Non-GAAP        $ 94,729     $ 99,587     $ 96,771     $ 95,663     $ 98,416     $ 98,072     $ 102,989     $ 106,736  
Gross profit
Non-GAAP
Gross profit      53.9   %     56.3   %     52.8   %     53.9   %     54.3   %     54.7   %     52.2    %     52.3    %
%
                                                                                                             
GAAP
Operating       $ 59,022     $ 62,069     $ 58,805     $ 63,102     $ 65,600     $ 62,711     $ 67,558      $ 69,215
expenses
Stock-based       (3,633 )     (3,949 )     (4,020 )     (3,667 )     (4,024 )     (4,336 )     (4,185  )     (3,785  )
compensation
Accelerated       -            -            -            -            (57    )     (226   )     (223    )     (176    )
depreciation
Purchase
accounting        (71    )     (71    )     -            -            -            -            -             -
amortization
Restructuring
and other         -            -            -            -            -            -            (1,868  )     (398    )
related
charges
Non-GAAP
Operating       $ 55,318     $ 58,049     $ 54,785     $ 59,435     $ 61,519     $ 58,149     $ 61,282      $ 64,856   
expenses
                                                                                                             
GAAP
Operating       $ 35,036     $ 36,897     $ 37,407     $ 32,013     $ 32,096     $ 34,517     $ 34,606      $ 36,878
income
Stock-based       4,179        4,508        4,579        4,215        4,620        4,862        4,692         4,176
compensation
Accelerated       -            -            -            -            181          544          541           428
depreciation
Purchase
accounting        196          133          -            -            -            -            -             -
amortization
Restructuring
and other         -            -            -            -            -            -            1,868         398      
related
charges
Non-GAAP
Operating       $ 39,411     $ 41,538     $ 41,986     $ 36,228     $ 36,897     $ 39,923     $ 41,707      $ 41,880   
income
Non-GAAP
Operating         22.4   %     23.5   %     22.9   %     20.4   %     20.3   %     22.3   %     21.1    %     20.5    %
income %
                                                                                                             
GAAP Income
before income   $ 35,677     $ 36,839     $ 37,813     $ 32,273     $ 32,108     $ 34,792     $ 34,783      $ 36,742
taxes
Stock-based       4,179        4,508        4,579        4,215        4,620        4,862        4,692         4,176
compensation
Accelerated       -            -            -            -            181          544          541           428
depreciation
Purchase
accounting        196          133          -            -            -            -            -             -
amortization
Restructuring
and other         -            -            -            -            -            -            1,868         398      
related
charges
Non-GAAP
Income before   $ 40,052     $ 41,480     $ 42,392     $ 36,488     $ 36,909     $ 40,198     $ 41,884      $ 41,744   
income taxes
                                                                                                             
GAAP Income     $ 8,946      $ 9,318      $ 6,915      $ 8,387      $ 8,545      $ 8,868      $ 6,577       $ 8,033
tax expense
Income tax
effect of         1,282        1,441        1,448        1,292        1,382        1,532        1,342         1,223
stock-based
compensation
Income tax
effect of         -            -            -            -            39           116          124           90
accelerated
depreciation
Income tax
effect of
purchase          74           50           -            -            -            -            -             -
accounting
amortization
Income tax
effect of
restructuring     -            -            -            -            -            -            600           103
and other
related
charges
Tax benefit
from the
expiration of     -            -            1,507        -            -            -            2,071         -
certain
statutes of
limitations
Tax benefit
from the
retroactive       -            -            -            -            -            -            -             1,835    
reinstatement
of the R&D
tax credit
Non-GAAP
Income tax      $ 10,302     $ 10,809     $ 9,870      $ 9,679      $ 9,966      $ 10,516     $ 10,714      $ 11,284   
expense
Non-GAAP
Income tax
expense as a      25.7   %     26.1   %     23.3   %     26.5   %     27.0   %     26.2   %     25.6    %     27.0    %
% of Non-GAAP
Income before
income taxes
                                                                                                             

                                                                                                                 
Summary of Unaudited Reconciliations of GAAP Measures to Non-GAAP Measures and other Unaudited GAAP Data (Continued)
($ in thousands, except per share data)
                                                                                     
                Q112          Q212          Q312          Q412          Q113          Q213          Q313          Q413
GAAP Net        $ 26,731      $ 27,521      $ 30,898      $ 23,886      $ 23,563      $ 25,924      $ 28,206      $ 28,709
income
Stock-based       4,179         4,508         4,579         4,215         4,620         4,862         4,692         4,176
compensation
Accelerated       -             -             -             -             181           544           541           428
depreciation
Purchase
accounting        196           133           -             -             -             -             -             -
amortization
Restructuring
and other         -             -             -             -             -             -             1,868         398
related
charges
Income tax        (1,356  )     (1,491  )     (2,955  )     (1,292  )     (1,421  )     (1,648  )     (4,137  )     (3,251  )
effect
Non-GAAP Net    $ 29,750      $ 30,671      $ 32,522      $ 26,809      $ 26,943      $ 29,682      $ 31,170      $ 30,460   
income
                                                                                                                   
GAAP Diluted
earnings per    $ 0.56        $ 0.60        $ 0.71        $ 0.55        $ 0.55        $ 0.61        $ 0.66        $ 0.67
common share
Stock-based       0.09          0.10          0.11          0.10          0.11          0.11          0.11          0.11
compensation
Accelerated       -             -             -             -             -             0.01          0.01          0.01
depreciation
Restructuring
and other         -             -             -             -             -             -             0.05          -
related
charges
Income tax        (0.03   )     (0.03   )     (0.07   )     (0.03   )     (0.03   )     (0.03   )     (0.10   )     (0.08   )
effect
Non-GAAP
Diluted         $ 0.62        $ 0.67        $ 0.75        $ 0.62        $ 0.63        $ 0.70        $ 0.73        $ 0.71     
earnings per
common share
                                                                                                                   
Shares used
in diluted
earnings per      48,060        45,717        43,640        43,329        42,570        42,403        42,618        43,119   
common share
calculation
                                                                                                                   
                                                                                                                   
SUMMARY OF UNAUDITED GAAP DATA
($ in thousands)
Net revenues
from
unaffiliated
customers:
Office and
Contact         $ 130,999     $ 136,395     $ 133,335     $ 130,980     $ 134,033     $ 133,119     $ 139,449     $ 142,700
Center
Mobile            32,164        28,341        36,024        35,296        36,157        33,305        44,138        49,860
Gaming and
Computer          7,395         8,381         9,209         6,870         6,789         7,797         9,024         7,137
Audio
Clarity           5,042         3,831         4,668         4,438         4,386         5,059         4,791         4,482    
Total net       $ 175,600     $ 176,948     $ 183,236     $ 177,584     $ 181,365     $ 179,280     $ 197,402     $ 204,179  
revenues
                                                                                                                   
Net revenues
by geographic
area from
unaffiliated
customers:
Domestic        $ 100,291     $ 101,196     $ 99,070      $ 105,676     $ 104,078     $ 107,513     $ 111,847     $ 113,009
International     75,309        75,752        84,166        71,908        77,287        71,767        85,555        91,170   
Total net       $ 175,600     $ 176,948     $ 183,236     $ 177,584     $ 181,365     $ 179,280     $ 197,402     $ 204,179  
revenues
                                                                                                                   
                                                                                                                   
Balance Sheet accounts and metrics:
Accounts
receivable,     $ 108,516     $ 103,026     $ 109,677     $ 111,771     $ 108,300     $ 108,070     $ 112,677     $ 128,209
net
Days sales
outstanding       56            52            54            57            54            54            51            57
(DSO)
Inventory,      $ 57,697      $ 60,717      $ 57,799      $ 53,713      $ 58,932      $ 61,639      $ 66,905      $ 67,435
net
Inventory         5.7           5.1           6.0           6.1           5.7           5.3           5.7           5.8      
turns
                                                                                                                   

Contact:

Plantronics, Inc.
Greg Klaben, 831-458-7533 (Investors)
Vice President of Investor Relations
Genevieve Haldeman, 831-458-7343 (Media)
Vice President of Global Communications
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