Plantronics Announces First Quarter Fiscal 2015 Financial Results

  Plantronics Announces First Quarter Fiscal 2015 Financial Results

  Revenue & Earnings Per Share Exceed Guidance; UC & Consumer Revenues Drive
                                    Upside

Business Wire

SANTA CRUZ, Calif. -- July 29, 2014

Plantronics, Inc. (NYSE: PLT) today announced first quarter fiscal year 2015
results. Highlights of the quarter include the following (comparisons are
against the first quarter of fiscal year 2014):

  *Net revenues were $216.7 million compared with $202.8 million.
  *GAAP gross margin was 52.9% compared with 52.1%

       *Non-GAAP gross margin was 53.2% compared with 52.6%.

  *GAAP operating income was $37.8 million compared with $35.9 million

       *Non-GAAP operating income was $44.1 million compared with $42.4
         million

  *GAAP diluted earnings per share (“EPS”) was $0.68, above our guidance of
    $0.54 to $0.61.

       *Non-GAAP diluted EPS was $0.78, above our guidance of $0.65 to $0.72.


Q1 Fiscal Year 2015 GAAP Results
                                                 
                   Q1 2015          Q1 2014          Change (%)
Net revenues       $216.7 million   $202.8 million   6.9%
Operating income   $37.8 million    $35.9 million    5.3%
Operating Margin   17.4%            17.7%
Diluted EPS        $0.68            $0.62            9.7%
                                                     
                                                     
Q1 Fiscal Year 2015 Non-GAAP Results
                                                     
                   Q1 2015          Q1 2014          Change (%)
Operating income   $44.1 million    $42.4 million    4.0%
Operating Margin   20.4%            20.9%
Diluted EPS        $0.78            $0.70            11.4%
                                                     

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

“Unified Communications and consumer revenue growth contributed to double
digit earnings per share growth,” stated Ken Kannappan, President & CEO. “We
continue to make great strategic progress, resulting in record profitability,
share gains in the consumer Bluetooth market, and an exciting pipeline of new
products.”

“We achieved a major milestone in upgrading our ERP system in the first
quarter to better manage the complexities of our global business,” said Pam
Strayer, Senior Vice President and Chief Financial Officer. “We went live with
Oracle release 12 and anticipate that it will enable us to make better
decisions, scale the business effectively and manage globally to lower costs
and increase performance.“

Enterprise net revenues increased 1% to $152.4 million in the first quarter of
fiscal year 2015 compared with $151.2 million in the first quarter of fiscal
year 2014 driven by the strength of our UC revenues. Net revenues from UC
products, a subset of Enterprise, grew by 17% to $49.2 million in the first
quarter of fiscal year 2015 compared with $42.1 million in the first quarter
of fiscal year 2014.

Consumer net revenues were $64.3 million in the first quarter of fiscal year
2015, up 25% from $51.6 million in the first quarter of fiscal year 2014,
driven by strong sales in the mono and stereo Bluetooth product categories.

Dividend Announcement

We are also announcing that we have declared a quarterly dividend of $0.15 per
common share, to be paid on September 10, 2014 to all shareholders of record
as of the close of business on August 20, 2014.

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, there is a
lack of meaningful correlation between backlog at the end of a fiscal period
and net revenues in a succeeding fiscal period.

Our business is inherently difficult to forecast, particularly with continuing
uncertainty in regional 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 second quarter of fiscal year 2015:

  *Net revenues of $210 million to $220 million;
  *GAAP operating income of $35 million to $40 million;
  *Non-GAAP operating income of $42 million to $47 million, excluding the
    impact of $7 million from stock-based compensation and purchase accounting
    amortization from GAAP operating income;
  *Assuming approximately 42.5 million diluted average weighted shares
    outstanding:

       *GAAP diluted EPS of $0.60 to $0.68;
       *Non-GAAP diluted EPS of $0.72 to $0.80; and
       *Cost of stock-based compensation and purchase accounting amortization
         to be approximately $0.12 per diluted share.

Please see our updated 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 first quarter fiscal year 2015
results. The conference call will take place today, July 29, 2014, 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 #69490319 will be available until
August 29, 2014 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.

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

Use of Non-GAAP Financial Information

To supplement our condensed consolidated financial statements presented on a
GAAP basis, we use non-GAAP measures of operating results, which are adjusted
to exclude certain non-cash expenses and charges from non-GAAP operating
income, non-GAAP operating margin and non-GAAP diluted EPS, including
stock-based compensation related to stock options, restricted stock and
employee stock purchases made under our employee stock purchase plan, purchase
accounting amortization, accelerated depreciation, and early lease termination
charges, all net of the associated tax impact, tax benefits from the release
of tax reserves, transfer pricing, tax deduction and tax credit adjustments,
and the impact of tax law changes. We exclude these expenses from our non-GAAP
measures primarily because Plantronics’ management does not believe they are
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 with 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, 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 expectations regarding earnings and revenue growth, (ii) our estimates
of GAAP and non-GAAP financial results for the second quarter of fiscal year
2015, including net revenues, operating income and diluted EPS; (iii) our
estimates of stock-based compensation and purchase accounting amortization and
other related charges, as well as the impact of these non-cash expenses on
Non-GAAP operating income and diluted EPS for the second quarter of fiscal
year 2015; and (iv) our estimate of weighted average shares outstanding for
the second quarter of fiscal year 2015, 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:

  *Adverse or uncertain economic conditions;
  *The volume and timing of orders we receive during each quarter;
  *Competition;
  *New product introductions and product transitions;
  *Changes in product mix and geographic sales mix
  *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., and
    Alcatel-Lucent, 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 first 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;
  *fluctuations in customer demand and 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;
  *the impact of accounting changes, including changes in revenue recognition
    as a result of incorporating software features and functionality in our
    products;
  *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, litigation or other contingencies and fluctuations in our
    corporate tax rate; 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 16, 2014, and other filings with the Securities and Exchange
Commission, as well as recent press releases. The Securities and Exchange
Commission 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
                                                     June 30,
                                                     2014          2013
                                                                     
Net revenues                                         $ 216,662     $ 202,818
Cost of revenues                                      101,952     97,186  
Gross profit                                           114,710       105,632
Gross profit %                                         52.9    %     52.1    %
                                                                     
Research, development and engineering                  22,520        20,863
Selling, general and administrative                    56,429        48,097
Gain from litigation settlement                        (2,000  )     -
Restructuring and other related charges               -           723     
Total operating expenses                              76,949      69,683  
Operating income                                       37,761        35,949
Operating income %                                     17.4    %     17.7    %
                                                                     
Interest and other income (expense), net              1,020       (486    )
Income before income taxes                             38,781        35,463
Income tax expense                                    10,109      8,510   
Net income                                           $ 28,672     $ 26,953  
                                                                     
% of net revenues                                      13.2    %     13.3    %
                                                                     
Earnings per common share:
Basic                                                $ 0.69        $ 0.63
Diluted                                              $ 0.68        $ 0.62
                                                                     
Shares used in computing earnings per common
share:
Basic                                                  41,619        42,692
Diluted                                                42,466        43,650
                                                                     
Effective tax rate                                     26.1    %     24.0    %

                                                                
PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
($ in thousands, except per share data)
                                                                     
                                                                     
UNAUDITED CONSOLIDATED BALANCE SHEETS
                                                                     
                                                        June 30,     March 31,
                                                       2014        2014
ASSETS
Cash and cash equivalents                             $ 235,250    $ 232,704
Short-term investments                                 93,187      102,717
Total cash, cash equivalents and short-term             328,437      335,421
investments
Accounts receivable, net                                150,765      138,301
Inventory, net                                          60,968       57,132
Deferred tax assets                                     11,507       11,776
Other current assets                                   13,949      13,657
Total current assets                                    565,626      556,287
Long-term investments                                   108,784      100,342
Property, plant and equipment, net                      137,046      134,402
Goodwill and purchased intangibles, net                 16,115       16,165
Other assets                                           2,149       4,619
Total assets                                          $ 829,720    $ 811,815
                                                                     
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable                                      $ 36,751     $ 30,756
Accrued liabilities                                    61,489      66,851
Total current liabilities                               98,240       97,607
Long-term income taxes payable                          13,224       12,719
Other long-term liabilities                            4,527       2,825
Total liabilities                                       115,991      113,151
Stockholders' equity                                   713,729     698,664
Total liabilities and stockholders' equity            $ 829,720    $ 811,815

                                                                
PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
($ in thousands, except per share data)
                                                                     
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                     
                                                     Three Months Ended
                                                     June 30,
                                                     2014          2013
                                                                     
Cash flows from operating activities
Net income                                           $ 28,672      $ 26,953
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                          4,624         4,108
Stock-based compensation                               6,305         4,988
Provision for excess and obsolete inventories          379           1,783
Deferred income taxes                                  2,715         5,703
Excess tax benefit from stock-based compensation       (992    )     (3,573  )
Other operating activities                             581           1,065
Changes in assets and liabilities:
Accounts receivable, net                               (12,631 )     5,916
Inventory, net                                         (3,983  )     228
Current and other assets                               (970    )     703
Accounts payable                                       5,995         (4,340  )
Accrued liabilities                                    (4,520  )     (7,277  )
Income taxes                                          3,363       (2,117  )
Cash provided by operating activities                 29,538      34,140  
                                                                     
Cash flows from investing activities
Purchase of investments                                (54,867 )     (57,121 )
Proceeds from maturities of investments                50,900        35,200
Proceeds from sale of investments                      5,014         30,815
Capital expenditures                                  (7,312  )    (13,014 )
Cash used for investing activities                    (6,265  )   (4,120  )
                                                                     
Cash flows from financing activities
Repurchase of common stock                             (12,438 )     (10,766 )
Proceeds from issuances under stock-based              2,832         13,163
compensation plans
Employees' tax withheld and paid for restricted        (5,787  )     (4,026  )
stock and restricted stock units
Payment of cash dividends                              (6,389  )     (4,368  )
Excess tax benefit from stock-based compensation      992         3,573   
Cash used for financing activities                    (20,790 )   (2,424  )
                                                                     
Effect of exchange rate changes on cash and cash      63          (29     )
equivalents
Net increase (decrease) in cash and cash               2,546         27,567
equivalents
Cash and cash equivalents at beginning of period      232,704     228,776 
Cash and cash equivalents at end of period           $ 235,250   $ 256,343 

                                                            
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
                                                 June 30,
                                                 2014          2013
                                                                 
GAAP Gross profit                                $ 114,710     $ 105,632
Stock-based compensation                           535           535
Accelerated depreciation                           -             220
Lease termination charges                         -           262     
Non-GAAP Gross profit                            $ 115,245    $ 106,649 
Non-GAAP Gross profit %                            53.2    %     52.6    %
                                                                 
GAAP Research, development and engineering       $ 22,520      $ 20,863
Stock-based compensation                           (1,751  )     (1,368  )
Accelerated depreciation                           -             (151    )
Purchase accounting amortization                  (50     )    (50     )
Non-GAAP Research, development and engineering   $ 20,719     $ 19,294  
                                                                 
GAAP Selling, general and administrative         $ 56,429      $ 48,097
Stock-based compensation                           (4,019  )     (3,084  )
Purchase accounting amortization                  -           (71     )
Non-GAAP Selling, general and administrative     $ 52,410     $ 44,942  
                                                                 
GAAP Operating expenses                          $ 76,949      $ 69,683
Stock-based compensation                           (5,770  )     (4,452  )
Accelerated depreciation                           -             (151    )
Purchase accounting amortization                   (50     )     (121    )
Restructuring and other related charges           -           (723    )
Non-GAAP Operating expenses                      $ 71,129     $ 64,236  

                                             
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
                                               June 30,
                                               2014            2013
                                                                          
GAAP Operating income                          $ 37,761        $ 35,949
Stock-based compensation                         6,305           4,987
Accelerated depreciation                         -               371
Lease termination charges                        -               262
Purchase accounting amortization                 50              121
Restructuring and other related charges         -             723    
Non-GAAP Operating income                      $ 44,116       $ 42,413 
                                                                          
GAAP Net income                                $ 28,672        $ 26,953
Stock-based compensation                         6,305           4,987
Accelerated depreciation                         -               371
Lease termination charges                        -               262
Purchase accounting amortization                 50              121
Restructuring and other related charges          -               723
Income tax effect of above items                 (1,800 )        (1,889 )
Income tax effect of unusual tax items          (273   ) ^(1)  (935   ) ^(2)
Non-GAAP Net income                            $ 32,954       $ 30,593 
                                                                          
GAAP Diluted earnings per common share         $ 0.68          $ 0.62
Stock-based compensation                         0.15            0.11
Accelerated depreciation                         -               0.01
Lease termination charges                        -               0.01
Restructuring and other related charges          -               0.02
Income tax effect                               (0.05  )       (0.07  )
Non-GAAP Diluted earnings per common share     $ 0.78         $ 0.70   
                                                                          
Shares used in diluted earnings per common       42,466          43,650
share calculation

^(1)  Excluded amount represents tax benefits from stock-based compensation
       and release of tax reserves.
       Excluded amount represents tax benefit from stock-based compensation,
       accelerated depreciation, lease termination charges, purchase
^(2)   accounting amortization, restructuring and other related charges, and
       tax benefits from the release of tax reserves and transfer pricing
       adjustments.


Use of Non-GAAP Financial Information
To supplement our condensed consolidated financial statements presented on a
GAAP basis, we use non-GAAP measures of operating results, which are adjusted
to exclude certain non-cash expenses and charges from non-GAAP operating
income, non-GAAP operating margin and non-GAAP diluted EPS, including
stock-based compensation related to stock options, restricted stock and
employee stock purchases made under our employee stock purchase plan, purchase
accounting amortization, accelerated depreciation, and early lease termination
charges, all net of the associated tax impact, tax benefits from the release
of tax reserves, transfer pricing, tax deduction and tax credit adjustments,
and the impact of tax law changes. We exclude these expenses from our non-GAAP
measures primarily because Plantronics’ management does not believe they are
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 with 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, 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)
                                                      
              Q114         Q214         Q314         Q414         Q115
GAAP Gross      $ 105,632     $ 99,614      $ 110,327     $ 111,055     $ 114,710
profit
Stock-based       535           638           686           695           535
compensation
Accelerated       220           41            -             -             -
depreciation
Lease
termination      262         1,126       -           -           -       
charges
Non-GAAP        $ 106,649    $ 101,419    $ 111,013    $ 111,750    $ 115,245 
Gross profit
Non-GAAP
Gross profit      52.6    %     52.3    %     52.2    %     53.5    %     53.2    %
%
                                                                        
GAAP
Operating       $ 69,683      $ 68,778      $ 72,485      $ 75,558      $ 76,949
expenses
Stock-based       (4,452  )     (5,327  )     (5,357  )     (5,490  )     (5,770  )
compensation
Accelerated       (151    )     (49     )     -             -             -
depreciation
Lease
termination       -             (66     )     -             -             -
charges
Purchase
accounting        (121    )     (85     )     (50     )     (50     )     (50     )
amortization
Restructuring
and other        (723    )    176         -           -           -       
related
charges
Non-GAAP
Operating       $ 64,236     $ 63,427     $ 67,078     $ 70,018     $ 71,129  
expenses
                                                                        
GAAP
Operating       $ 35,949      $ 30,836      $ 37,842      $ 35,497      $ 37,761
income
Stock-based       4,987         5,965         6,043         6,185         6,305
compensation
Accelerated       371           90            -             -             -
depreciation
Lease
termination       262           1,192         -             -             -
charges
Purchase
accounting        121           85            50            50            50
amortization
Restructuring
and other        723         (176    )    -           -           -       
related
charges
Non-GAAP
Operating       $ 42,413     $ 37,992     $ 43,935     $ 41,732     $ 44,116  
income
Non-GAAP
Operating         20.9    %     19.6    %     20.7    %     20.0    %     20.4    %
income %
                                                                        
GAAP Income
before income   $ 35,463      $ 31,195      $ 38,028      $ 36,453      $ 38,781
taxes
Stock-based       4,987         5,965         6,043         6,185         6,305
compensation
Accelerated       371           90            -             -             -
depreciation
Lease
termination       262           1,192         -             -             -
charges
Purchase
accounting        121           85            50            50            50
amortization
Restructuring
and other        723         (176    )    -           -           -       
related
charges
Non-GAAP
Income before   $ 41,927     $ 38,351     $ 44,121     $ 42,688     $ 45,136  
income taxes
                                                                        
GAAP Income     $ 8,510       $ 8,057       $ 3,645       $ 8,510       $ 10,109
tax expense
Income tax
effect of         1,889         2,072         1,799         1,738         1,800
above items
Income tax
effect of        935         226         5,621       650         273     
unusual tax
items
Non-GAAP
Income tax      $ 11,334     $ 10,355     $ 11,065     $ 10,898     $ 12,182  
expense
                                                                        
Non-GAAP
Income tax
expense as a    27.0    %   27.0    %   25.1    %   25.5    %   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)
                                                     
              Q114         Q214         Q314         Q414         Q115
GAAP Net        $ 26,953      $ 23,138      $ 34,383      $ 27,943      $ 28,672
income
Stock-based       4,987         5,965         6,043         6,185         6,305
compensation
Accelerated       371           90            -             -             -
depreciation
Lease
termination       262           1,192         -             -             -
charges
Purchase
accounting        121           85            50            50            50
amortization
Restructuring
and other         723           (176    )     -             -             -
related
charges
Income tax
effect of         (1,889  )     (2,072  )     (1,799  )     (1,738  )     (1,800  )
above items
Income tax
effect of        (935    )    (226    )    (5,621  )    (650    )    (273    )
unusual tax
items
Non-GAAP Net    $ 30,593     $ 27,996     $ 33,056     $ 31,790     $ 32,954  
income
                                                                        
GAAP Diluted
earnings per    $ 0.62        $ 0.53        $ 0.80        $ 0.65        $ 0.68
common share
Stock-based       0.11          0.14          0.14          0.14          0.15
compensation
Accelerated       0.01          -             -             -             -
depreciation
Lease
termination       0.01          0.02          -             -             -
charges
Restructuring
and other         0.02          -             -             -             -
related
charges
Income tax       (0.07   )    (0.05   )    (0.18   )    (0.05   )    (0.05   )
effect
Non-GAAP
Diluted         $ 0.70       $ 0.64       $ 0.76       $ 0.74       $ 0.78    
earnings per
common share
                                                                        
Shares used
in diluted
earnings per    43,650     43,597     43,228     42,697     42,466  
common share
calculation
                                                                        
                                                                        
SUMMARY OF UNAUDITED GAAP DATA
($ in thousands)
Net revenues
from
unaffiliated
customers:
Enterprise      $ 151,183     $ 139,945     $ 146,636     $ 150,501     $ 152,353
Consumer        $ 51,635     $ 54,035     $ 66,103     $ 58,569     $ 64,309  
Total net       $ 202,818    $ 193,980    $ 212,739    $ 209,070    $ 216,662 
revenues
                                                                        
Net revenues
by geographic
area from
unaffiliated
customers:
Domestic        $ 121,318     $ 115,795     $ 113,042     $ 125,123     $ 124,467
International    81,500      78,185      99,697      83,947      92,195  
Total net       $ 202,818     $ 193,980     $ 212,739     $ 209,070     $ 216,662
revenues
                                                              
                                                              
Balance Sheet
accounts and
metrics:
Accounts
receivable,     $ 120,903     $ 123,748     $ 133,379     $ 138,301     $ 150,765
net
Days sales
outstanding       54            57            56            60            63
(DSO)
Inventory,      $ 65,314      $ 69,150      $ 66,569      $ 57,132      $ 60,968
net
Inventory       6.0        5.5        6.2        6.9        6.7     
turns

Contact:

Plantronics, Inc.
Investor Contact:
Greg Klaben, 831-458-7533
Vice President of Investor Relations
or
Media Contact:
Terry Anderson, 831-420-3021
Corporate Communications
 
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