Plantronics (PLT) Tops Q1 EPS by 31c, Revenues Beat; Offers 2Q EPS Mid-Point Above Consensus, 2Q Revenue Outlook Below Consensus

Plantronics (NYSE: PLT) reported Q1 EPS of $0.33, $0.31 better than the analyst estimate of $0.02. Revenue for the quarter came in at $361 million versus the consensus estimate of $354.97 million.

Highlights for the First Quarter 2021

• Headsets demand remained elevated and voice solutions challenged as customers continue to work from home. Backlog at quarter-end was approximately five weeks.
• The Company's in-house manufacturing site in Tijuana, Mexico resumed production in early May after reconfiguring to implement specific safety protocols. The factory is capable of running at full capacity, but supply constraints continue to affect production.
• Poly announced a new family of Microsoft Teams Rooms (MTR) solutions and completed the Teams certification of the Studio X30 and X50 video bars. Poly also received Teams re-certification on six headsets for a total of 16 certified Teams headsets, and now offers the largest number of Teams certified endpoints in the market.
• Poly's next-gen video solutions, including the Studio X30, Studio X50, and G7500 became the first certified Zoom appliances in the market. In addition, the company announced participation in Zoom's Hardware-as-a-Service offering featuring Poly video bars and phones.
• LogMeIn announced that the Poly Studio X30 and X50 video bars are now available in bundled solutions for GoToRoom.
• The Company resolved several longstanding litigation matters, which will reduce Legal expenses going forward.
• The Company ended fiscal Q1 with $263 million in cash and short-term investments.

"We are working aggressively to fulfill elevated headset demand driven by the hybrid working trend as we navigate product shifts and supply chain challenges," said Robert Hagerty, Chairman of the Poly Board of Directors and Interim Chief Executive Officer. "We continue to make progress on the transformation necessary to achieve the objectives of the integrated company and return to profitable growth."

"In light of the current macroeconomic uncertainty, we have been accumulating cash to maximize financial flexibility and liquidity," said Charles Boynton, Executive Vice President and Chief Financial Officer. "As our business and the economy stabilize, our capital allocation strategy will focus on reducing leverage while maintaining appropriate liquidity."

GUIDANCE:

Plantronics sees Q2 2021 EPS of $0.25-$0.65, versus the consensus of $0.35. Plantronics sees Q2 2021 revenue of $350-390 million, versus the consensus of $400.13 million.

For earnings history and earnings-related data on Plantronics (PLT) click here.

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