Plantronics Announces Fourth Quarter & Fiscal Year 2015 Results
Tweet
Share
E-mailGet Alerts PLT Hot Sheet
Join SI Premium – FREE
SANTA CRUZ, CA -- (Marketwired) -- 04/27/15 -- Plantronics, Inc. (NYSE: PLT) today announced fourth quarter and fiscal year 2015 results. Highlights of the fourth quarter include the following (comparisons are against the fourth quarter of fiscal year 2014):
- Net revenues were $200.8 million compared with $209.1 million
- GAAP gross margin was 54.4% compared with 53.1%
- Non-GAAP gross margin was 54.7% compared with 53.5%.
- GAAP operating income was $32.9 million compared with $35.5 million
- Non-GAAP operating income was $40.4 million compared with $41.7 million
- GAAP diluted earnings per share ("EPS") was $0.61 compared with $0.65
- Non-GAAP diluted EPS was $0.72 compared with $0.74
Q4 Fiscal Year 2015 GAAP Results
Q4 2015 Q4 2014 Change (%)
Net revenues $200.8 million $209.1 million (4.0)%
Operating income $32.9 million $35.5 million (7.3)%
Operating Margin 16.4% 17.0%
Diluted EPS $0.61 $0.65 (6.2)%
Q4 Fiscal Year 2015 Non-GAAP Results
Q4 2015 Q4 2014 Change (%)
Operating income $40.4 million $41.7 million (3.1)%
Operating Margin 20.1% 20.0%
Diluted EPS $0.72 $0.74 (2.7)%
Fiscal Year 2015 GAAP Results
2015 2014 Change (%)
Net revenues $865.0 million $818.6 million 5.7%
Operating income $149.1 million $140.1 million 6.4%
Operating Margin 17.2% 17.1%
Diluted EPS $2.63 $2.59 1.5%
Fiscal Year 2015 GAAP Results
2015 2014 Change (%)
Net revenues $865.0 million $818.6 million 5.7%
Operating income $149.1 million $140.1 million 6.4%
Operating Margin 17.2% 17.1%
Diluted EPS $2.63 $2.59 1.5%
A reconciliation between our GAAP and non-GAAP results is provided in the tables at the end of this press release.
"Our fourth quarter revenue results disappointed due primarily to currency headwinds, a decline in the consumer mono Bluetooth market, and a delayed new product introduction," stated Ken Kannappan, President & CEO. "On an annual basis, we achieved solid revenue growth with even better profitability growth. We continue to execute well on our strategy and are maintaining product leadership and innovation in all of our major product categories. We continue to believe in the fundamentals of the Company and that our market position remains strong."
"Our hedging program, along with a lower quarterly share count and lower tax rate mitigated the currency impact to the quarter," said Pam Strayer, Senior Vice President and Chief Financial Officer. "We generated approximately $54 million in cash flow from operations in the fourth quarter of fiscal year 2015 and approximately $154 million for the full fiscal year. We drew $34.5 million on our line of credit to partially fund the purchase of 1.6 million shares of our common stock for $85 million during the quarter. We grew our cash, cash equivalents and short and long term investments position to approximately $482 million.
Enterprise net revenues decreased 1% to $148.7 million in the fourth quarter of fiscal year 2015 compared with $150.5 million in the fourth quarter of fiscal year 2014 driven by a decline in Core enterprise revenue and unfavorable currency rates. Net revenues from UC products, a subset of Enterprise, grew by 5% to $45.8 million in the fourth quarter of fiscal year 2015 compared with $43.6 million in the fourth quarter of fiscal year 2014.
Consumer net revenues were $52.1 million in the fourth quarter of fiscal year 2015, down from $58.6 million in the fourth quarter of fiscal year 2014, due to several factors, including a decline in the mono Bluetooth market and the bankruptcy of a large U.S. retailer.
Plantronics Announces Quarterly Dividend of $0.15
We are also announcing that we have declared a quarterly dividend of $0.15 per common share, to be paid on June 10, 2015 to all shareholders of record as of the close of business on May 20, 2015.
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 currency fluctuations, 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 2016:
- Net revenues of $202 million to $212 million;
- GAAP operating income of $26 million to $31 million;
- Non-GAAP operating income of $34 million to $39 million, excluding the impact of $8 million from stock-based compensation and purchase accounting amortization from GAAP operating income;
- Assuming approximately 40 million diluted average weighted shares outstanding:
- GAAP diluted EPS of $0.48 to $0.57;
- Non-GAAP diluted EPS of $0.62 to $0.71; and
- Cost of stock-based compensation and purchase accounting amortization to be approximately $0.14 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 fourth quarter and full year fiscal year 2015 results. The conference call will take place today, April 27, 2015, at 6:00 AM (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 # 13097180 will be available until May 27, 2015 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 belief in our fundamentals and market positions; (ii) our estimates of GAAP and non-GAAP financial results for the first quarter of fiscal year 2016, including net revenues, operating income and diluted EPS; (iv) 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 first quarter of fiscal year 2016; and (v) our estimate of weighted average shares outstanding for the first quarter of fiscal year 2016, 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 and achieve positive 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 our influence over 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 is limited; (iii) delays or limitations on our ability to timely introduce solutions that are cost effective, feature-rich, stable, and attractive to our customers within forecasted development budgets; (iv) our successful implementation and execution new and different processes involving the design, development, and manufacturing of complex electronic systems composed of hardware, firmware, and software that works seamlessly and continuously in a wide variety of environments and with multiple devices; (v) our sales model and expertise must successfully evolve to support complex integration of hardware and software with UC infrastructure consistent with changing customer purchasing expectations; (vi) as UC becomes more widely adopted we anticipate that competition for market share will increase, particularly given that some competitors may have superior technical and economic resources; (vii) UC solutions generally, or our solutions in particular, may not be adopted with the breadth and speed in the marketplace that we currently anticipate; (viii) sales cycles for more complex UC deployments are longer as compared to our traditional Enterprise products; (ix) 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; and (x) our failure to expand our technical support capabilities to support the complex and proprietary platforms in which our UC products are and will be integrated;
- 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, and the inherent risks of our substantial foreign operations; and
- seasonality in one or more of our product categories.
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 Twelve Months Ended
March 31, March 31,
--------------------------- ---------------------------
2015 2014 2015 2014
------------- ------------- ------------- -------------
Net revenues $ 200,762 $ 209,070 $ 865,010 $ 818,607
Cost of revenues 91,596 98,015 403,391 391,979
------------- ------------- ------------- -------------
Gross profit 109,166 111,055 461,619 426,628
Gross profit % 54.4% 53.1% 53.4% 52.1%
Research, development
and engineering 22,347 22,453 91,627 84,781
Selling, general and
administrative 54,813 53,105 229,569 201,176
Gain from litigation
settlements (846) - (8,662) -
Restructuring and
other related
charges - - 547
------------- ------------- ------------- -------------
Total operating
expenses 76,314 75,558 312,534 286,504
------------- ------------- ------------- -------------
Operating income 32,852 35,497 149,085 140,124
Operating income
% 16.4% 17.0% 17.2% 17.1%
Interest and other
income (expense),
net (2,151) 956 (3,834) 1,015
------------- ------------- ------------- -------------
Income before income
taxes 30,701 36,453 145,251 141,139
Income tax expense 4,877 8,510 32,950 28,722
------------- ------------- ------------- -------------
Net income $ 25,824 $ 27,943 $ 112,301 $ 112,417
============= ============= ============= =============
% of net revenues 12.9% 13.4% 13.0% 13.7%
Earnings per common
share:
Basic $ 0.62 $ 0.67 $ 2.69 $ 2.65
Diluted $ 0.61 $ 0.65 $ 2.63 $ 2.59
Shares used in
computing earnings
per common share:
Basic 41,606 41,866 41,723 42,452
Diluted 42,482 42,697 42,643 43,364
Effective tax rate 15.9% 23.3% 22.7% 20.4%
PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
($ in thousands)
UNAUDITED CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------------
March 31, March 31,
2015 2014
---------------- ----------------
ASSETS
Cash and cash equivalents $ 276,850 $ 232,704
Short-term investments 97,859 102,717
---------------- ----------------
Total cash, cash equivalents and short-
term investments 374,709 335,421
Accounts receivable, net 136,581 138,301
Inventory, net 56,676 57,132
Deferred tax assets 6,564 11,776
Other current assets 28,124 13,657
---------------- ----------------
Total current assets 602,654 556,287
Long-term investments 107,590 100,342
Property, plant and equipment, net 139,413 134,402
Goodwill and purchased intangibles, net 16,077 16,165
Other assets 10,308 4,619
---------------- ----------------
Total assets $ 876,042 $ 811,815
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 32,781 $ 30,756
Accrued liabilities 62,041 66,851
---------------- ----------------
Total current liabilities 94,822 97,607
Long-term income taxes payable 12,984 12,719
Revolving line of credit 34,500 -
Other long-term liabilities 6,339 2,825
---------------- ----------------
Total liabilities 148,645 113,151
Stockholders' equity 727,397 698,664
---------------- ----------------
Total liabilities and stockholders'
equity $ 876,042 $ 811,815
================ ================
PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
($ in thousands, except per share data)
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
---------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
March 31, March 31,
--------------------- ---------------------
2015 2014 2015 2014
---------- ---------- ---------- ----------
Cash flows from operating
activities
Net Income $ 25,824 $ 27,943 $ 112,301 $ 112,417
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 4,736 3,895 18,711 15,566
Stock-based compensation 7,472 6,184 28,594 23,180
Excess tax benefit from
stock-based compensation (532) (225) (3,520) (4,659)
Deferred income taxes (2,634) (6,343) (980) (5,813)
Provision for excess and
obsolete inventories (61) (281) 931 4,138
Other operating activities (1,672) 638 (1,188) 1,983
Changes in assets and
liabilities:
Accounts receivable, net 22,751 (4,597) 4,272 (11,136)
Inventory, net 1,048 9,175 128 6,040
Current and other assets (688) 529 (5,368) 1,355
Accounts payable (2,457) 4,028 (62) (6,311)
Accrued liabilities (2,964) (1,806) 500 (418)
Income taxes 3,239 10,229 119 5,149
---------- ---------- ---------- ----------
Cash provided by operating
activities 54,062 49,369 154,438 141,491
---------- ---------- ---------- ----------
Cash flows from investing
activities
Proceeds from sale of
investments 23,565 12,732 96,129 102,414
Proceeds from maturities of
investments 18,255 42,745 120,430 137,955
Purchase of investments (43,256) (65,519) (216,013) (247,355)
Acquisitions, net of cash
acquired - - (150) -
Capital expenditures (2,748) (13,328) (21,962) (50,985)
---------- ---------- ---------- ----------
Cash provided by (used for)
investing activities (4,184) (23,370) (21,566) (57,971)
---------- ---------- ---------- ----------
Cash flows from financing
activities
Repurchase of common stock (85,496) (28,900) (112,939) (85,654)
Employees' tax withheld and
paid for restricted stock and
restricted stock units (305) (208) (7,611) (6,222)
Proceeds from issuances under
stock-based compensation plans 5,221 4,456 23,042 24,055
Proceeds from revolving line of
credit 34,500 - 34,500 -
Repayments of revolving line of
credit - - - -
Payment of cash dividends (6,434) (4,267) (25,730) (17,372)
Excess tax benefit from stock-
based compensation 532 225 3,520 4,659
Cash used for financing
activities (51,982) (28,694) (85,218) (80,534)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Effect of exchange rate changes
on cash and cash equivalents (1,396) (135) (3,508) 942
---------- ---------- ---------- ----------
Net increase (decrease) in cash
and cash equivalents (3,500) (2,830) 44,146 3,928
Cash and cash equivalents at
beginning of period 280,350 235,534 232,704 228,776
---------- ---------- ---------- ----------
Cash and cash equivalents at end
of period $ 276,850 $ 232,704 $ 276,850 $ 232,704
========== ========== ========== ==========
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,
--------------------- ---------------------
2015 2014 2015 2014
---------- ---------- ---------- ----------
GAAP Gross profit $ 109,166 $ 111,055 $ 461,619 $ 426,628
Stock-based compensation 695 695 2,583 2,554
Accelerated depreciation - - - 261
Lease termination charges - - - 1,388
---------- ---------- ---------- ----------
Non-GAAP Gross profit $ 109,861 $ 111,750 $ 464,202 $ 430,831
========== ========== ========== ==========
Non-GAAP Gross profit % 54.7% 53.5% 53.7% 52.6%
GAAP Research, development and
engineering $ 22,347 $ 22,453 $ 91,627 $ 84,781
Stock-based compensation (2,119) (1,696) (8,053) (6,404)
Accelerated depreciation - - - (200)
Lease termination charges - - - (21)
Purchase accounting
amortization (63) (50) (238) (200)
---------- ---------- ---------- ----------
Non-GAAP Research, development
and engineering $ 20,165 $ 20,707 $ 83,336 $ 77,956
========== ========== ========== ==========
GAAP Selling, general and
administrative $ 54,813 $ 53,105 $ 229,569 $ 201,176
Stock-based compensation (4,655) (3,794) (17,955) (14,222)
Lease termination charges - - - (45)
Purchase accounting
amortization - - - (106)
---------- ---------- ---------- ----------
Non-GAAP Selling, general and
administrative $ 50,158 $ 49,311 $ 211,614 $ 186,803
========== ========== ========== ==========
GAAP Operating expenses $ 76,314 $ 75,558 $ 312,534 $ 286,504
Stock-based compensation (6,774) (5,490) (26,008) (20,626)
Accelerated depreciation - - - (200)
Lease termination charges - - - (66)
Purchase accounting
amortization (63) (50) (238) (306)
Restructuring and other related
charges - - - (547)
---------- ---------- ---------- ----------
Non-GAAP Operating expenses $ 69,477 $ 70,018 $ 286,288 $ 264,759
========== ========== ========== ==========
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,
--------------------- ---------------------
2015 2014 2015 2014
---------- ---------- ---------- ----------
GAAP Operating income $ 32,852 $ 35,497 $ 149,085 $ 140,124
Stock-based compensation 7,469 6,185 28,591 23,180
Accelerated depreciation - - - 461
Lease termination charges - - - 1,454
Purchase accounting
amortization 63 50 238 306
Restructuring and other related
charges - - - 547
---------- ---------- ---------- ----------
Non-GAAP Operating income $ 40,384 $ 41,732 $ 177,914 $ 166,072
========== ========== ========== ==========
GAAP Net income $ 25,824 $ 27,943 $ 112,301 $ 112,417
Stock-based compensation 7,469 6,185 28,591 23,180
Accelerated depreciation - - - 461
Lease termination charges - - - 1,454
Purchase accounting
amortization 63 50 238 306
Restructuring and other related
charges - - - 547
Income tax effect of above
items (2,252) (1,738) (8,506) (7,498)
Income tax effect of unusual
tax items (489) (650) (2,864) (7,432)
---------- ---------- ---------- ----------
Non-GAAP Net income $ 30,615 $ 31,790 $ 129,760 $ 123,435
========== ========== ========== ==========
GAAP Diluted earnings per common
share $ 0.61 $ 0.65 $ 2.63 $ 2.59
Stock-based compensation 0.17 0.14 0.67 0.53
Accelerated depreciation - - - 0.01
Lease termination charges - - - 0.03
Restructuring and other related
charges - - - 0.02
Income tax effect (0.06) (0.05) (0.26) (0.33)
---------- ---------- ---------- ----------
Non-GAAP Diluted earnings per
common share $ 0.72 $ 0.74 $ 3.04 $ 2.85
========== ========== ========== ==========
Shares used in diluted earnings
per common share calculation 42,482 42,697 42,643 43,364
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
GAAP Gross profit $ 105,632 $ 99,614 $ 110,327 $ 111,055
Stock-based compensation 535 638 686 695
Accelerated depreciation 220 41 - -
Lease termination charges 262 1,126 - -
---------- ---------- ---------- ----------
Non-GAAP Gross profit $ 106,649 $ 101,419 $ 111,013 $ 111,750
========== ========== ========== ==========
Non-GAAP Gross profit % 52.6% 52.3% 52.2% 53.5%
GAAP Operating expenses $ 69,683 $ 68,778 $ 72,485 $ 75,558
Stock-based compensation (4,452) (5,327) (5,357) (5,490)
Accelerated depreciation (151) (49) - -
Lease termination charges - (66) - -
Purchase accounting
amortization (121) (85) (50) (50)
Restructuring and other
related charges (723) 176 - -
---------- ---------- ---------- ----------
Non-GAAP Operating expenses $ 64,236 $ 63,427 $ 67,078 $ 70,018
========== ========== ========== ==========
GAAP Operating income $ 35,949 $ 30,836 $ 37,842 $ 35,497
Stock-based compensation 4,987 5,965 6,043 6,185
Accelerated depreciation 371 90 - -
Lease termination charges 262 1,192 - -
Purchase accounting
amortization 121 85 50 50
Restructuring and other
related charges 723 (176) - -
---------- ---------- ---------- ----------
Non-GAAP Operating income $ 42,413 $ 37,992 $ 43,935 $ 41,732
========== ========== ========== ==========
Non-GAAP Operating income % 20.9% 19.6% 20.7% 20.0%
GAAP Income before income taxes $ 35,463 $ 31,195 $ 38,028 $ 36,453
Stock-based compensation 4,987 5,965 6,043 6,185
Accelerated depreciation 371 90 - -
Lease termination charges 262 1,192 - -
Purchase accounting
amortization 121 85 50 50
Restructuring and other
related charges 723 (176) - -
---------- ---------- ---------- ----------
Non-GAAP Income before income
taxes $ 41,927 $ 38,351 $ 44,121 $ 42,688
========== ========== ========== ==========
GAAP Income tax expense $ 8,510 $ 8,057 $ 3,645 $ 8,510
Income tax effect of above
items 1,889 2,072 1,799 1,738
Income tax effect of unusual
tax items 935 226 5,621 650
---------- ---------- ---------- ----------
Non-GAAP Income tax expense $ 11,334 $ 10,355 $ 11,065 $ 10,898
========== ========== ========== ==========
Non-GAAP Income tax expense as a
% of Non-GAAP Income before
income taxes 27.0% 27.0% 25.1% 25.5%
Summary of Unaudited Reconciliations of GAAP Measures to Non-GAAP Measures
and other Unaudited GAAP Data
($ in thousands, except per share data)
Q115 Q215 Q315 Q415
GAAP Gross profit $ 114,710 $ 117,827 $ 119,916 $ 109,166
Stock-based compensation 535 668 685 695
Accelerated depreciation - - - -
Lease termination charges - - - -
----------- ---------- ---------- ----------
Non-GAAP Gross profit $ 115,245 $ 118,495 $ 120,601 $ 109,861
=========== ========== ========== ==========
Non-GAAP Gross profit % 53.2% 54.9% 52.0% 54.7%
GAAP Operating expenses $ 76,949 $ 79,969 $ 79,302 $ 76,314
Stock-based compensation (5,770) (6,719) (6,745) (6,774)
Accelerated depreciation - - - -
Lease termination charges - - - -
Purchase accounting
amortization (50) (61) (64) (63)
Restructuring and other
related charges - - - -
----------- ---------- ---------- ----------
Non-GAAP Operating expenses $ 71,129 $ 73,189 $ 72,493 $ 69,477
=========== ========== ========== ==========
GAAP Operating income $ 37,761 $ 37,858 $ 40,614 $ 32,852
Stock-based compensation 6,305 7,387 7,430 7,469
Accelerated depreciation - - - -
Lease termination charges - - - -
Purchase accounting
amortization 50 61 64 63
Restructuring and other
related charges - - - -
----------- ---------- ---------- ----------
Non-GAAP Operating income $ 44,116 $ 45,306 $ 48,108 $ 40,384
=========== ========== ========== ==========
Non-GAAP Operating income % 20.4% 21.0% 20.8% 20.1%
GAAP Income before income taxes $ 38,781 $ 37,173 $ 38,596 $ 30,701
Stock-based compensation 6,305 7,387 7,430 7,469
Accelerated depreciation - - - -
Lease termination charges - - - -
Purchase accounting
amortization 50 61 64 63
Restructuring and other
related charges - - - -
----------- ---------- ---------- ----------
Non-GAAP Income before income
taxes $ 45,136 $ 44,621 $ 46,090 $ 38,233
=========== ========== ========== ==========
GAAP Income tax expense $ 10,109 $ 9,752 $ 8,212 $ 4,877
Income tax effect of above
items 1,800 2,250 2,204 2,252
Income tax effect of unusual
tax items 273 74 2,028 489
----------- ---------- ---------- ----------
Non-GAAP Income tax expense $ 12,182 $ 12,076 $ 12,444 $ 7,618
=========== ========== ========== ==========
Non-GAAP Income tax expense as a
% of Non-GAAP Income before
income taxes 27.0% 27.1% 27.0% 19.9%
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
GAAP Net income $ 26,953 $ 23,138 $ 34,383 $ 27,943
Stock-based compensation 4,987 5,965 6,043 6,185
Accelerated depreciation 371 90 - -
Lease termination charges 262 1,192 - -
Purchase accounting
amortization 121 85 50 50
Restructuring and other
related charges 723 (176) - -
Income tax effect of above
items (1,889) (2,072) (1,799) (1,738)
Income tax effect of unusual
tax items (935) (226) (5,621) (650)
---------- ---------- ---------- ----------
Non-GAAP Net income $ 30,593 $ 27,996 $ 33,056 $ 31,790
========== ========== ========== ==========
GAAP Diluted earnings per common
share $ 0.62 $ 0.53 $ 0.80 $ 0.65
Stock-based compensation 0.11 0.14 0.14 0.14
Accelerated depreciation 0.01 - - -
Lease termination charges 0.01 0.02 - -
Restructuring and other
related charges 0.02 - - -
Income tax effect (0.07) (0.05) (0.18) (0.05)
---------- ---------- ---------- ----------
Non-GAAP Diluted earnings per
common share $ 0.70 $ 0.64 $ 0.76 $ 0.74
========== ========== ========== ==========
Shares used in diluted earnings
per common share calculation 43,650 43,597 43,228 42,697
SUMMARY OF UNAUDITED GAAP DATA
($ in thousands)
Net revenues from unaffiliated
customers:
Enterprise $ 151,183 $ 139,945 $ 146,636 $ 150,501
Consumer 51,635 54,035 66,103 58,569
---------- ---------- ---------- ----------
Total net revenues $ 202,818 $ 193,980 $ 212,739 $ 209,070
========== ========== ========== ==========
Net revenues by geographic area
from unaffiliated customers:
Domestic $ 121,318 $ 115,795 $ 113,042 $ 125,123
International 81,500 78,185 99,697 83,947
---------- ---------- ---------- ----------
Total net revenues $ 202,818 $ 193,980 $ 212,739 $ 209,070
========== ========== ========== ==========
Balance Sheet accounts and
metrics:
Accounts receivable, net $ 120,903 $ 123,748 $ 133,379 $ 138,301
Days sales outstanding (DSO) 54 57 56 60
Inventory, net $ 65,314 $ 69,150 $ 66,569 $ 57,132
Inventory turns 6.0 5.5 6.2 6.9
Summary of Unaudited Reconciliations of GAAP Measures to Non-GAAP Measures
and other Unaudited GAAP Data (Continued)
($ in thousands, except per share data)
Q115 Q215 Q315 Q415
GAAP Net income $ 28,672 $ 27,421 $ 30,384 $ 25,824
Stock-based compensation 6,305 7,387 7,430 7,469
Accelerated depreciation - - - -
Lease termination charges - - - -
Purchase accounting
amortization 50 61 64 63
Restructuring and other
related charges - - - -
Income tax effect of above
items (1,800) (2,250) (2,204) (2,252)
Income tax effect of unusual
tax items (273) (74) (2,028) (489)
----------- ---------- ---------- ----------
Non-GAAP Net income $ 32,954 $ 32,545 $ 33,646 $ 30,615
=========== ========== ========== ==========
GAAP Diluted earnings per common
share $ 0.68 $ 0.65 $ 0.71 $ 0.61
Stock-based compensation 0.15 0.17 0.18 0.17
Accelerated depreciation - - - -
Lease termination charges - - - -
Restructuring and other
related charges - - - -
Income tax effect (0.05) (0.05) (0.10) (0.06)
----------- ---------- ---------- ----------
Non-GAAP Diluted earnings per
common share $ 0.78 $ 0.77 $ 0.79 $ 0.72
=========== ========== ========== ==========
Shares used in diluted earnings
per common share calculation 42,466 42,505 42,700 42,482
SUMMARY OF UNAUDITED GAAP DATA
($ in thousands)
Net revenues from unaffiliated
customers:
Enterprise $ 152,353 $ 156,680 $ 161,591 $ 148,660
Consumer 64,309 59,125 70,190 52,102
----------- ---------- ---------- ----------
Total net revenues $ 216,662 $ 215,805 $ 231,781 $ 200,762
=========== ========== ========== ==========
Net revenues by geographic area
from unaffiliated customers:
Domestic $ 124,467 $ 123,697 $ 123,092 $ 116,351
International 92,195 92,108 108,689 84,411
----------- ---------- ---------- ----------
Total net revenues $ 216,662 $ 215,805 $ 231,781 $ 200,762
=========== ========== ========== ==========
Balance Sheet accounts and
metrics:
Accounts receivable, net $ 150,765 $ 140,427 $ 157,322 $ 136,581
Days sales outstanding (DSO) 63 59 61 61
Inventory, net $ 60,968 $ 63,551 $ 57,724 $ 56,676
Inventory turns 6.7 6.2 7.8 6.5
INVESTOR CONTACT: Greg Klaben Vice President of Investor Relations (831) 458-7533MEDIA CONTACT: George Gutierrez Vice President of Global Communications (831) 458-7537
Source: Plantronics, Inc.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- MVB Bank partners with DingoBlu on mobile banking platform
- Sellas presents preclinical SLS009 pancreatic cancer data at AACR
- Leader's Advantage Acquisition Corp. closes $150M IPO on Nasdaq
Create E-mail Alert Related Categories
Press ReleasesRelated Entities
Dividend, Bankruptcy, Stock Buyback, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
