SOURCE: Plantronics
May 04, 2010 16:00 ET
Plantronics Announces Fourth Quarter Fiscal 2010 Results
Revenue & Earnings per Share Exceed Guidance; Company Achieves Record Fiscal Year Cash Flow From Operations
SANTA CRUZ, CA--(Marketwire - May 4, 2010) - Plantronics, Inc. (NYSE: PLT) today
announced fourth quarter fiscal 2010 net revenues of $162.3 million
compared with $128.1 million in the fourth quarter of fiscal 2009. Net
revenues were above the guidance provided on January 26, 2010 of $150
million to $155 million. Plantronics' GAAP diluted earnings per share from
continuing operations were $0.49 in the fourth quarter of fiscal 2010
compared with a diluted loss per share from continuing operations of $0.15
in the same quarter of the prior year. Non-GAAP diluted earnings per share
from continuing operations for the fourth quarter of fiscal 2010 were $0.53
compared with $0.07 in the fourth quarter of fiscal 2009 and were greater
than the previously provided non-GAAP guidance of $0.40 to $0.44. The
difference between GAAP and non-GAAP earnings per share from continuing
operations for the fourth quarter of fiscal 2010 includes stock-based
compensation charges, purchase accounting amortization and restructuring
and other related charges, all net of associated tax benefits along with
the release of $1.1 million in tax reserves due to the expiration of
certain statutes of limitations.
Net revenues for fiscal year 2010 were $613.8 million compared with $674.6
million for fiscal year 2009. Plantronics' GAAP diluted earnings per share
from continuing operations were $1.55 for fiscal year 2010 compared with
$0.93 in fiscal year 2009. Non-GAAP diluted earnings per share from
continuing operations for fiscal 2010 were $1.85 and were $1.26 in fiscal
year 2009.
The Company completed the sale of Altec Lansing, its Audio Entertainment
Group ("AEG") segment, effective as of December 1, 2009. All results of
operations related to AEG including the loss on the sale are classified as
discontinued operations for all periods presented.
Plantronics also announced that its Board of Directors declared a quarterly
dividend of $0.05 per share. The dividend is payable on June 10, 2010 to
stockholders of record at the close of business on May 20, 2010.
"Revenues and profitability exceeded expectations as we experienced better
than anticipated demand in our Office & Contact Center product group,"
stated Ken Kannappan, President & CEO. "We believe we are well positioned
to benefit from a further economic recovery and continued adoption of
Unified Communications technologies."
"We completed fiscal 2010 with record cash flow from operations and a
considerably improved balance sheet from fiscal 2009 including an increase
of approximately $151 million in cash, cash equivalents, and short term
investments in addition to lower inventory levels. For fiscal 2011, we
remain committed to achieving a high return on capital," stated Barbara
Scherer, SVP Finance and Administration & CFO.
Business Results (Non-GAAP from Continuing Operations)
Fourth quarter fiscal 2010 net revenues of $162.3 million increased 27%
compared with $128.1 million in the prior year quarter and declined by 2%
from $165.9 million in the third quarter of fiscal 2010. Geographically,
revenues in all regions grew year over year but declined sequentially
except for the Asia Pacific region in which revenues grew both year over
year and sequentially.
Improved economic conditions led to increases in net revenues both year
over year and sequentially in the Office and Contact Center market. Office
and Contact Center net revenues were $111.9 million in the fourth quarter
of fiscal 2010, an increase of 31% from $85.6 million in the fourth quarter
of fiscal 2009 and a sequential increase of 9% from $103.1 million in the
third quarter of fiscal 2010.
Mobile and Gaming & Computer Audio net revenues increased year over year
and declined sequentially while net revenues from the Clarity group
declined both year over year and sequentially. Mobile headset net revenues
were $35.8 million in the fourth quarter of fiscal 2010, an increase of 17%
from the prior year quarter of $30.6 million but a sequential decrease of
24% from $47.0 million in the third quarter of fiscal 2010.
Gross margin in the fourth quarter of fiscal 2010 was 54.5% compared with
39.2% in the fourth quarter of the prior year and 48.9% in the third
quarter of fiscal 2010. The increase in the fourth quarter as compared to
the same period in the prior year was primarily driven by lower
requirements for excess and obsolete inventory, cost reductions, and higher
rates of factory utilization. The sequential improvement was primarily
driven by an improved product mix.
Operating income in the fourth quarter was $35.9 million compared with
previously provided guidance of $27 million to $30 million, resulting in an
operating margin of 22.1% as compared to operating income of $8.4 million
and an operating margin of 6.5% in the prior year quarter and operating
income of $31.8 million and an operating margin of 19.2% in the third
quarter of fiscal 2010.
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.
Plantronics has a "book and ship" business model whereby it ships most
orders to customers within 48 hours of its receipt of those orders and,
therefore, the level of backlog does not provide reliable visibility into
potential future revenues. The Company's business is inherently difficult
to forecast, particularly with continuing uncertainty in global economic
conditions, and there can be no assurance that the incoming orders it
expects to receive over the balance of the current quarter will
materialize.
Subject to the foregoing, we are currently expecting the following range of
financial results for continuing operations for the first quarter of fiscal
2011:
-- Net revenues of $160 million - $165 million;
-- Non-GAAP operating income of $32.5 million to $35.5 million;
-- Non-GAAP diluted earnings per share of $0.46 - $0.50;
-- Non-GAAP tax rate to be approximately 28%;
-- The EPS cost of stock-based compensation to be approximately $0.06; and
-- GAAP diluted earnings per share of $0.40 to $0.45.
Plantronics does not intend to update these targets during the quarter or
to report on its progress toward these targets. Plantronics will not
comment on these targets to analysts or investors except by its press
release announcing its first quarter fiscal 2011 results or by other public
disclosure. Any statements by persons outside Plantronics speculating on
the progress of the first quarter fiscal 2011 will not be based on internal
Company information and should be assessed accordingly by investors.
Conference Call Scheduled to Discuss Actual Financial Results
Plantronics has scheduled a conference call to discuss fourth quarter
fiscal 2010 results. The conference call will take place Tuesday, May 4th
at 2:00 PM (PDT). All interested investors and potential investors in
Plantronics 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 #55076064 will be available for
72 hours at (800) 642-1687 for callers from North America and at (706)
645-9291 for all other callers. The conference call will also be
simultaneously web cast at www.plantronics.com under Investor Relations,
and the web cast of the conference call will remain available at the
Plantronics website for thirty days.
Use of Non-GAAP Financial Information
Plantronics excludes non-recurring transactions and non-cash expenses and
charges such as restructuring and other related charges, the release of
certain tax reserves, stock-based compensation expenses related to stock
options, stock awards and employee stock purchases, purchase accounting
amortization and impairment of goodwill and long-lived assets from non-GAAP
income from continuing operations, non-GAAP earnings per diluted share from
continuing operations, non-GAAP operating income, non-GAAP gross margin,
non-GAAP operating margin and non-GAAP effective tax rate on continuing
operations. Plantronics excludes these expenses from its non-GAAP measures
primarily because Plantronics does not believe they are reflective of
ongoing operating results and are not considered by management as part of
its target operating model. Plantronics believes that the use of non-GAAP
financial measures provides meaningful supplemental information regarding
its performance and liquidity, and helps investors compare actual results
to its long-term target operating model goals. Plantronics believes that
both management and investors benefit from referring to these non-GAAP
financial measures in assessing its performance and when planning,
forecasting and analyzing future periods.
Safe Harbor
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Exchange 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 2011, including revenue, operating
income and earnings per share; (ii) our estimated tax rate for the first
quarter of fiscal 2011; (iii) our estimated stock-based compensation
expense for the first quarter of fiscal 2011; (iv) our long term prospects
with respect to the UC opportunities and our market growth opportunities
with regard to all of our product lines, as well as other matters discussed
in this press release that are not purely historical data. Plantronics
does 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:
-- economic conditions in both the domestic and international markets;
-- fluctuations in foreign exchange rates;
-- the bankruptcy or financial weakness of distributors or key customers,
or the bankruptcy of or reduction in capacity of our key suppliers;
-- our ability to realize our Unified Communications ("UC") plans and to
achieve the financial results projected to arise from UC adoption could
be adversely affected by the following factors: (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 such as
Microsoft, Avaya, IBM and Cisco, and we have a limited ability to
influence such providers with respect to the functionality of their
platforms, their rate of deployment, and their willingness to integrate
their platforms with our solutions; (iii) the development of UC
solutions is technically complex and this may delay or obstruct 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; (iv) 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; (v) UC solutions may
not be adopted with the breadth and speed in the marketplace that we
currently anticipate, and (vi) our support expenditures may
substantially increase over time due to the complex nature of the
platforms developed by the major UC providers as these platforms
continue to evolve and become more commonly adopted;
-- failure to match production to demand given long lead times and the
difficulty of forecasting unit volumes and acquiring the component
parts to meet demand without having excess inventory or incurring
cancellation charges;
-- further impairment losses on the carrying value of our intangible
assets and goodwill could be recognized if it is determined the value
is not recoverable which would adversely affect our financial results;
-- volatility in prices from our suppliers, including our manufacturers
located in China, have and could negatively affect our profitability
and/or market share; and
-- 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 which might affect our manufacturing
facilities in Mexico, and unexpected delays and uncertainties affecting
our ability to realize targeted expense reductions and annualized
savings by outsourcing the manufacturing of our Bluetooth products in
China to GoerTek, Inc.
For more information concerning these and other possible risks, please
refer to the Company's Annual Report on Form 10-K filed May 26, 2009,
quarterly reports filed on Form 10-Q 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 GAAP to Non-GAAP Statements of Operations Reconciliations for
the Three and Twelve Months ended March 31, 2010 and March 31, 2009
-- Summary Unaudited Statements of Operations and Related Data on a
Non-GAAP Basis
About Plantronics
Plantronics is a world leader in personal audio communications for
professionals and consumers. From unified communication solutions to
Bluetooth headsets, Plantronics delivers unparalleled audio experiences and
quality that reflect our nearly 50 years of innovation and customer
commitment. Plantronics is used by every company in the Fortune 100 and is
the headset of choice for air traffic control, 911 dispatch and the New
York Stock Exchange. For more information, please visit
www.plantronics.com or call (800) 544-4660.
Plantronics, the logo design, and Clarity 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,
---------------------- ----------------------
2009 2010 2009 2010
---------- ---------- ---------- ----------
Net revenues $ 128,098 $ 162,282 $ 674,590 $ 613,837
Cost of revenues 78,500 74,516 382,659 312,767
---------- ---------- ---------- ----------
Gross profit 49,598 87,766 291,931 301,070
Gross profit % 38.7% 54.1% 43.3% 49.0%
Research, development and
engineering 13,119 15,793 63,840 57,784
Selling, general and
administrative 31,791 40,185 155,678 143,784
Restructuring and other
related charges 10,664 100 10,952 1,867
---------- ---------- ---------- ----------
Total operating expenses 55,574 56,078 230,470 203,435
---------- ---------- ---------- ----------
Operating income (loss) (5,976) 31,688 61,461 97,635
Operating income (loss) % (4.7%) 19.5% 9.1% 15.9%
Interest and other income
(expense), net (415) (548) (3,544) 3,105
---------- ---------- ---------- ----------
Income (loss) from
continuing operations
before income taxes (6,391) 31,140 57,917 100,740
Income tax expense from
continuing operations 1,111 6,725 12,575 24,287
---------- ---------- ---------- ----------
Income (loss) from
continuing operations,
net of tax (7,502) 24,415 45,342 76,453
Discontinued operations:
Income (loss) from
operations of
discontinued AEG segment
(including loss on sale
of AEG) (5,412) 394 (142,633) (29,898)
Income tax expense
(benefit) on
discontinued operations (1,882) 228 (32,392) (11,180)
---------- ---------- ---------- ----------
Income (loss) on
discontinued
operations (3,530) 166 (110,241) (18,718)
---------- ---------- ---------- ----------
Net income (loss) $ (11,032) $ 24,581 $ (64,899) $ 57,735
========== ========== ========== ==========
% of net revenues (8.6%) 15.1% (9.6%) 9.4%
Earnings (loss) per common
share:
Basic
Continuing operations $ (0.15) $ 0.51 $ 0.93 $ 1.58
Discontinued operations $ (0.07) $ 0.00 $ (2.27) $ (0.39)
---------- ---------- ---------- ----------
Net income (loss) $ (0.23) $ 0.51 $ (1.34) $ 1.19
========== ========== ========== ==========
Diluted
Continuing operations $ (0.15) $ 0.49 $ 0.93 $ 1.55
Discontinued operations $ (0.07) $ 0.00 $ (2.25) $ (0.38)
---------- ---------- ---------- ----------
Net income (loss) $ (0.23) $ 0.50 $ (1.33) $ 1.17
========== ========== ========== ==========
Shares used in computing
earnings (loss) per share:
Basic 48,431 48,146 48,589 48,504
Diluted 48,431 49,562 48,947 49,331
Tax rate from continuing
operations (17.4%) 21.6% 21.7% 24.1%
PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
($ in thousands, except per share data)
UNAUDITED CONSOLIDATED BALANCE SHEETS
March 31, March 31,
2009 2010
---------- ----------
ASSETS
Cash and cash equivalents $ 158,193 $ 349,961
Short-term investments 59,987 19,231
---------- ----------
Total cash, cash equivalents, and short-term
investments 218,180 369,192
Accounts receivable, net 83,657 88,898
Inventory, net 119,296 70,518
Deferred income taxes 12,486 10,911
Other current assets 29,936 21,568
Assets held for sale - 8,861
---------- ----------
Total current assets 463,555 569,948
Long-term investments 23,718 -
Property, plant and equipment, net 95,719 65,700
Intangibles, net 26,575 3,449
Goodwill 14,005 14,005
Other assets 9,548 2,605
---------- ----------
Total assets $ 633,120 $ 655,707
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 32,827 $ 23,779
Accrued liabilities 53,143 45,837
---------- ----------
Total current liabilities 85,970 69,616
Deferred tax liability 8,085 551
Long-term income taxes payable 12,677 12,926
Other long-term liabilities 1,021 924
---------- ----------
Total liabilities 107,753 84,017
Stockholders' equity 525,367 571,690
---------- ----------
Total liabilities and stockholders' equity $ 633,120 $ 655,707
========== ==========
PLANTRONICS, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
($ in thousands, except per share data)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31, 2010
-----------------------------------
GAAP Excluded Non-GAAP
--------- --------- ---------
Net revenues $ 162,282 $ - $ 162,282
Cost of revenues 74,516 (745) (1) 73,771
--------- --------- ---------
Gross profit 87,766 745 88,511
Gross profit % 54.1% 54.5%
Research, development and engineering 15,793 (951) (1) 14,842
Selling, general and administrative 40,185 (2,364) (1) 37,821
Restructuring and other related charges 100 (100) (3) -
--------- --------- ---------
Total operating expenses 56,078 (3,415) 52,663
--------- --------- ---------
Operating income 31,688 4,160 35,848
Operating income % 19.5% 22.1%
Interest and other income (expense),
net (548) - (548)
--------- --------- ---------
Income from continuing operations
before income taxes 31,140 4,160 35,300
Income tax expense from continuing
operations 6,725 2,404 (4) 9,129
--------- --------- ---------
Income from continuing operations,
net of tax $ 24,415 $ 1,756 $ 26,171
========= ========= =========
% of net revenues 15.0% 16.1%
Diluted earnings per common share
from continuing operations $ 0.49 $ 0.53
Shares used in diluted per share
calculations 49,562 49,562
Twelve Months Ended
March 31, 2010
-----------------------------------
GAAP Excluded Non-GAAP
--------- --------- ---------
Net revenues $ 613,837 $ - $ 613,837
Cost of revenues 312,767 (7,947) (2) 304,820
--------- --------- ---------
Gross profit 301,070 7,947 309,017
Gross profit % 49.0% 50.3%
Research, development and engineering 57,784 (3,404) (1) 54,380
Selling, general and administrative 143,784 (8,799) (1) 134,985
Restructuring and other related charges 1,867 (1,867) (3) -
--------- --------- ---------
Total operating expenses 203,435 (14,070) 189,365
--------- --------- ---------
Operating income 97,635 22,017 119,652
Operating income % 15.9% 19.5%
Interest and other income (expense),
net 3,105 - 3,105
--------- --------- ---------
Income from continuing operations
before income taxes 100,740 22,017 122,757
Income tax expense from continuing
operations 24,287 7,230 (5) 31,517
--------- --------- ---------
Income from continuing operations,
net of tax $ 76,453 $ 14,787 $ 91,240
========= ========= =========
% of net revenues 12.5% 14.9%
Diluted earnings per common share
from continuing operations $ 1.55 $ 1.85
Shares used in diluted per share
calculations 49,331 49,331
(1) Excluded amount represents stock-based compensation and purchase
accounting amortization.
(2) Excluded amount represents stock-based compensation, purchase
accounting amortization and $5,205 of accelerated depreciation on
assets related to restructuring activity.
(3) Excluded amount represents restructuring and other related charges.
(4) Excluded amount represents tax benefit from stock-based compensation,
purchase accounting amortization and restructuring and other related
charges and $1,061 related to a tax benefit from expiration of certain
statutes of limitations.
(5) Excluded amount represents tax benefit from stock-based compensation,
purchase accounting amortization and restructuring and other related
charges and $2,217 related to a tax benefit from expiration of certain
statutes of limitations.
Use of Non-GAAP Financial Information
To supplement our consolidated financial statements presented on a GAAP
basis, Plantronics uses non-GAAP measures of operating results from
continuing operations, which are adjusted to exclude non-recurring and
non-cash expenses and charges, such as restructuring and other related
charges, certain tax credits and the release of certain tax reserves,
stock-based compensation expenses related to stock options, awards and
employee stock purchases, purchase accounting amortization and impairment
of goodwill and long-lived assets. Plantronics does not believe these
expenses and charges are reflective of ongoing operating results and are
not part of our target operating model. We have presented non-GAAP
statements that only show our results to the income from continuing
operations after tax line. The non-GAAP financial measures should not be
considered a substitute for, or superior to, financial measures calculated
in accordance with GAAP, and the financial results calculated in accordance
with GAAP and the reconciliations to those financial statements should be
carefully evaluated. The non-GAAP financial measures used by Plantronics
may be calculated differently from, and therefore may not be comparable to,
similarly titled measures used by other companies.
PLANTRONICS, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
($ in thousands, except per share data)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31, 2009
-----------------------------------
GAAP Excluded Non-GAAP
--------- --------- ---------
Net revenues $ 128,098 $ - $ 128,098
Cost of revenues 78,500 (666) (1) 77,834
--------- --------- ---------
Gross profit 49,598 666 50,264
Gross profit % 38.7% 39.2%
Research, development and engineering 13,119 (872) (1) 12,247
Selling, general and administrative 31,791 (2,162) (1) 29,629
Restructuring and other related charges 10,664 (10,664) (2) -
--------- --------- ---------
Total operating expenses 55,574 (13,698) 41,876
--------- --------- ---------
Operating income (loss) (5,976) 14,364 8,388
Operating income (loss) % (4.7%) 6.5%
Interest and other income (expense),
net (415) - (415)
--------- --------- ---------
Income (loss) from continuing
operations before income taxes (6,391) 14,364 7,973
Income tax expense from continuing
operations 1,111 3,285 (3) 4,396
--------- --------- ---------
Income (loss) from continuing
operations, net of tax $ (7,502) $ 11,079 $ 3,577
========= ========= =========
% of net revenues (5.9%) 2.8%
Diluted earnings (loss) per common
share from continuing operations $ (0.15) $ 0.07
Shares used in diluted per share
calculations 48,431 48,431
Twelve Months Ended
March 31, 2009
-----------------------------------
GAAP Excluded Non-GAAP
--------- --------- ---------
Net revenues $ 674,590 $ - $ 674,590
Cost of revenues 382,659 (3,215) (1) 379,444
--------- --------- ---------
Gross profit 291,931 3,215 295,146
Gross profit % 43.3% 43.8%
Research, development and engineering 63,840 (3,687) (1) 60,153
Selling, general and administrative 155,678 (9,551) (1) 146,127
Restructuring and other related charges 10,952 (10,952) (2) -
--------- --------- ---------
Total operating expenses 230,470 (24,190) 206,280
--------- --------- ---------
Operating income (loss) 61,461 27,405 88,866
Operating income (loss) % 9.1% 13.2%
Interest and other income (expense),
net (3,544) - (3,544)
--------- --------- ---------
Income (loss) from continuing
operations before income taxes 57,917 27,405 85,322
Income tax expense from continuing
operations 12,575 11,195 (4) 23,770
--------- --------- ---------
Income (loss) from continuing
operations, net of tax $ 45,342 $ 16,210 $ 61,552
========= ========= =========
% of net revenues 6.7% 9.1%
Diluted earnings (loss) per common
share from continuing operations $ 0.93 $ 1.26
Shares used in diluted per share
calculations 48,947 48,947
(1) Excluded amount represents stock-based compensation and purchase
accounting amortization.
(2) Excluded amount represents restructuring and other related charges.
(3) Excluded amount represents tax benefit from stock-based compensation,
purchase accounting amortization and restructuring and other related
charges.
(4) Excluded amount represents tax benefit from stock-based compensation,
purchase accounting amortization and restructuring and other related
charges and $3,813 related to a tax benefit from expiration of certain
statutes of limitations.
Use of Non-GAAP Financial Information
To supplement our consolidated financial statements presented on a GAAP
basis, Plantronics uses non-GAAP measures of operating results from
continuing operations, which are adjusted to exclude non-recurring and
non-cash expenses and charges, such as restructuring and other related
charges, certain tax credits and the release of certain tax reserves,
stock-based compensation expenses related to stock options, awards and
employee stock purchases, purchase accounting amortization and impairment
of goodwill and long-lived assets. Plantronics does not believe these
expenses and charges are reflective of ongoing operating results and are
not part of our target operating model. We have presented non-GAAP
statements that only show our results to the income from continuing
operations after tax line. The non-GAAP financial measures should not be
considered a substitute for, or superior to, financial measures calculated
in accordance with GAAP, and the financial results calculated in accordance
with GAAP and the reconciliations to those financial statements should be
carefully evaluated. The non-GAAP financial measures used by Plantronics
may be calculated differently from, and therefore may not be comparable to,
similarly titled measures used by other companies.
Summary of Unaudited Statements of Operations and Related Data -
Non-GAAP on Income From Continuing Operations
($ in thousands, except per share data)
Q109 Q209 Q309 Q409 FY09
Net revenues $ 198,527 $ 195,349 $ 152,616 $ 128,098 $ 674,590
Cost of revenues 108,449 101,720 91,441 77,834 379,444
Gross profit 90,078 93,629 61,175 50,264 295,146
Gross profit % 45.4% 47.9% 40.1% 39.2% 43.8%
Research, development
and engineering 16,204 15,878 15,824 12,247 60,153
Selling, general and
administrative 40,369 39,774 36,355 29,629 146,127
Operating expenses 56,573 55,652 52,179 41,876 206,280
Operating income 33,505 37,977 8,996 8,388 88,866
Operating income % 16.9% 19.4% 5.9% 6.5% 13.2%
Income from continuing
operations before
income taxes 35,045 34,807 7,497 7,973 85,322
Income tax expense
from continuing
operations 8,763 10,118 493 4,396 23,770
Income tax expense as
a percent of income
from continuing
operations before
taxes 25.0% 29.1% 6.6% 55.1% 27.9%
Income from continuing
operations, net of
tax $ 26,282 $ 24,689 $ 7,004 $ 3,577 $ 61,552
Diluted EPS -
continuing
operations $ 0.53 $ 0.50 $ 0.14 $ 0.07 $ 1.26
Diluted shares
outstanding 49,245 49,489 48,522 48,431 48,947
Net revenues from
unaffiliated
customers:
Office and Contact
Center $ 122,803 $ 119,530 $ 101,694 $ 85,642 $ 429,669
Mobile 59,882 60,911 36,011 30,615 187,419
Gaming and
Computer Audio 9,621 8,977 8,531 6,923 34,052
Clarity 6,221 5,931 6,380 4,918 23,450
Net revenues by
geographic area
from unaffiliated
customers:
Domestic $ 123,603 $ 129,789 $ 91,594 $ 79,304 $ 424,290
International 74,924 65,560 61,022 48,794 250,300
Balance Sheet
accounts and
metrics:
Accounts receivable,
net (1) $ 130,530 $ 115,032 $ 106,463 $ 83,657 $ 83,657
Days sales
outstanding (DSO) (1) 59 53 63 59
Inventory, net (2) $ 116,379 $ 135,736 $ 114,423 $ 100,171 $ 100,171
Inventory turns (2) 3.7 3.0 3.2 3.1
Q110 Q210 Q310 Q410 FY10
Net revenues $ 141,162 $ 144,458 $ 165,935 $ 162,282 $ 613,837
Cost of revenues 72,036 74,145 84,868 73,771 304,820
Gross profit 69,126 70,313 81,067 88,511 309,017
Gross profit % 49.0% 48.7% 48.9% 54.5% 50.3%
Research, development
and engineering 12,850 12,733 13,955 14,842 54,380
Selling, general and
administrative 31,058 30,823 35,283 37,821 134,985
Operating expenses 43,908 43,556 49,238 52,663 189,365
Operating income 25,218 26,757 31,829 35,848 119,652
Operating income % 17.9% 18.5% 19.2% 22.1% 19.5%
Income from continuing
operations before
income taxes 26,565 27,641 33,251 35,300 122,757
Income tax expense
from continuing
operations 7,172 6,939 8,277 9,129 31,517
Income tax expense as
a percent of income
from continuing
operations before
taxes 27.0% 25.1% 24.9% 25.9% 25.7%
Income from continuing
operations, net of
tax $ 19,393 $ 20,702 $ 24,974 $ 26,171 $ 91,240
Diluted EPS -
continuing
operations $ 0.40 $ 0.42 $ 0.50 $ 0.53 $ 1.85
Diluted shares
outstanding 48,665 49,567 49,625 49,562 49,331
Net revenues from
unaffiliated
customers:
Office and Contact
Center $ 95,923 $ 93,503 $ 103,096 $ 111,875 $ 404,397
Mobile 32,310 34,665 46,951 35,830 149,756
Gaming and
Computer Audio 8,810 9,015 11,072 10,363 39,260
Clarity 4,119 7,275 4,816 4,214 20,424
Net revenues by
geographic area
from unaffiliated
customers:
Domestic $ 88,789 $ 93,370 $ 99,157 $ 96,803 $ 378,119
International 52,373 51,088 66,778 65,479 235,718
Balance Sheet
accounts and
metrics:
Accounts receivable,
net (1) $ 88,350 $ 103,003 $ 113,291 $ 88,898 $ 88,898
Days sales
outstanding (DSO) (1) 56 64 61 49
Inventory, net (2) $ 90,258 $ 78,026 $ 70,914 $ 70,518 $ 70,518
Inventory turns (2) 3.2 3.8 4.8 4.2
(1) Accounts receivable, net is presented on a consolidated basis
including discontinued operations as Plantronics does not maintain
balance by segment; DSO is calculated on revenues from continuing
operations and consolidated Accounts receivable.
(2) Inventory, net and inventory turns reflect amounts in continuing
operations only.