-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q+PT+4w7iDdGzezEOp+ImcSxPwd+18/H6+RNzPJ+gmAqwPcOxScGFjhhjnNYXir6 Vm2pD6ksPwziKrw65Rc/3w== 0000914025-06-000003.txt : 20060124 0000914025-06-000003.hdr.sgml : 20060124 20060124162104 ACCESSION NUMBER: 0000914025-06-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20051231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060124 DATE AS OF CHANGE: 20060124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PLANTRONICS INC /CA/ CENTRAL INDEX KEY: 0000914025 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 770207692 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12696 FILM NUMBER: 06546688 BUSINESS ADDRESS: STREET 1: 345 ENCINAL ST CITY: SANTA CRUZ STATE: CA ZIP: 95061-1802 BUSINESS PHONE: 8314265858 MAIL ADDRESS: STREET 1: 345 ENCINAL STREET STREET 2: PO BOX 1802 CITY: SANTA CRUZ STATE: CA ZIP: 95061-1802 FORMER COMPANY: FORMER CONFORMED NAME: PI PARENT CORP DATE OF NAME CHANGE: 19931025 8-K 1 form8k_q3.htm FORM 8-K Q3 06 EARNINGS RELEASE Form 8-K Q3 06 Earnings Release



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): January 24, 2006

Plantronics, Inc.

(Exact name of Registrant as Specified in its Charter)


Delaware
1-12696
77-0207692
(State or Other Jurisdiction of Incorporation or Organization)
(Commission file number)
(I.R.S. Employer Identification Number)

345 Encinal Street
Santa Cruz, California 95060
(Address of Principal Executive Offices including Zip Code)

(831) 426-5858
(Registrant's Telephone Number, Including Area Code)


N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





SECTION 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition
 
On January 24, 2006, Plantronics, Inc., a Delaware corporation (“the Company”) issued a press release reporting our results of operations and financial condition for the third fiscal quarter of fiscal 2006, a copy of which is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained herein, including Exhibit 99.1 attached hereto, is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.

SECTION 7 - Regulation FD

Item 7.01 Regulation FD Disclosure

The following information is furnished pursuant to Item 7.01, “Regulation FD Disclosure.”

On January 24, 2006, the Company issued a press release announcing that our Board of Directors had declared a cash dividend of $0.05 per share of our common stock, payable on March 10, 2006 to shareholders of record at the close of business on February 10, 2006.

A copy of the press release is attached as Exhibit 99.2 hereto.

SECTION 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

The following exhibits are furnished as part of this report.

Exhibit Number
Description



 
 
 
 

 


-2-



SIGNATURE

  Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
PLANTRONICS, INC.
 
 
 
 
 
 
Date: January 24, 2006
By:  
/s/ Barbara Scherer
 
Barbara Scherer
 
Senior Vice President and Chief Financial Officer
 
 
-3-

EX-99.1 2 exh99_1.htm EXHIBIT 99.1 Q306 EARNINGS RELEASE Exhibit 99.1 Q306 Earnings Release


 
Exhibit 99.1
 
Plantronics Logo
 

PRESS RELEASE
 
Plantronics Reports Record Revenues
 
FOR INFORMATION, CONTACT:
Jon Alvarado
Treasurer and Director, Investor Relations
(831) 458-7533
FOR IMMEDIATE RELEASE
January 24, 2006
 


 
SANTA CRUZ, CA - January 24, 2006 - Plantronics, Inc., (NYSE: PLT) today reported third quarter revenues of $222.5 million and earnings per share of $0.46, above the guidance it provided on November 1, 2005. Record revenues of $161.5 million were achieved by the Audio Communications Group (“ACG”) and revenues from the Audio Entertainment Group added $61 million to the total.
 
Audio Communications Group
 
ACG’s record revenues of $161.5 million were up approximately 7% from $150.6 million in the year ago quarter. Revenue growth was driven by our wireless office headsets which represented about 25% of total ACG revenues in comparison to approximately 13% a year ago. Demand for our office wireless headsets was up both in North America and also in EMEA. The Voyager 510S contributed to the increase, but the CS50 and CS60 product families also continued to grow and accounted for the majority of the growth, even in comparison to the September quarter.
 
On the strength of our new Bluetooth consumer headset line, revenues from Bluetooth headsets for cell phone applications were up sharply versus a year ago, though revenues from corded mobile headsets were down resulting in lower overall revenues from mobile headsets in comparison to the third quarter a year ago. Our line of Bluetooth headsets has enjoyed a good reception in the market and the Pulsar 590 and the Explorer 320 were both Best of Innovations award honorees at the International Consumer Electronics show. In addition, the Discovery 640 received the prestigious Industry Forum (iF) Design Award, a competition that critiques more than 2,000 products from 37 countries.
 
Finally, in comparison to a year ago, gaming and computer product revenues were down in comparison to the all-time high reached in the third quarter of 2005 which had been primarily driven by the exclusive promotion of a gaming headset for use with Halo 2.
 
Ken Kannappan, President and Chief Executive Officer, noted, “The benefits of freedom and mobility continue to be validated, both by the growth in wireless office products, and the reception to our Bluetooth line of mobile headsets. Our branding and advertising campaign has increased awareness and consideration of Plantronics and we are cautiously optimistic about the results to date.”



Gross margins for the Audio Communications Group were approximately 46.4%, down from 50.1% a year ago but up from 45.5% in the September quarter and in line with our expectations. Relative to the year ago quarter, the principal reason for the decline was higher manufacturing costs, in part the result of expanding capacity for anticipated future growth and in part the result of yields and unit cost on new products not yet at target levels. Higher warranty costs and larger provisions for excess and obsolete inventory were the other key factors for the decline relative to a year ago, though warranty costs were stable relative to the September quarter and requirements for E&O were lower than the September quarter. Finally, in comparison to the September quarter, progress was made on improving yields and reducing manufacturing costs.
 
Operating expenses were up $5.5 million versus the year ago quarter with the principal drivers being the $3.3 million spent during the quarter on our national advertising campaign partially offset by reductions in other marketing programs, and expansion of R&D. As a result of higher revenues and improved efficiencies in some areas, our total operating expenses increased by just 1.4 points to 30.4% of revenues despite the substantial increase in branding, advertising and demand generation activities and the $2 million increase in spending for new product development.
 
Audio Entertainment Group
 
Driven by strong sales of the inMotion™ portable audio line of products, Altec Lansing achieved record revenues of $61 million. (Revenues of Altec Lansing products account for all the revenues of the Audio Entertainment Group.) In accordance with purchase accounting, we recorded non-cash charges of approximately $4.2 million, including $3.3 million to cost of goods sold, and $0.9 million in S, G&A principally for amortization of intangible assets acquired. Including these non-cash charges associated with purchase accounting, the acquisition was accretive to earnings per share by $0.05 in the quarter.
 
The transition to digital media, a key element of our Audio Entertainment strategy, continues to accelerate at a rapid pace. Digital music downloads grew 146% in 2005 vs. 2004. Apple sold 14 million iPods in the 4th quarter, 2-3 million more than the most optimistic forecasts, and demand for speakers for these digital players continues to grow with consumers choosing the Altec Lansing line in record numbers,” said Ken Kannappan.
 
Balance Sheet and Cash Flow
 
Our balance sheet is presented on a consolidated basis, including the assets and liabilities of both our principal business segments. Highlights for the quarter include that we repurchased 798,500 shares of stock for a total of $22.4 million, paid down $9 million on our line of credit and generated $8.5 million in cash flow from operations. Principally as a result of these factors, our cash and short term investments amounted to $58.2 million in comparison to $91.2 million as of September 30, 2005. We had strong cash collections, a full quarter of Altec Lansing revenues, and reduced our days sales outstanding to 51 in comparison to 60 for the September quarter. Inventory performance also improved from 4 turns in the September quarter to 4.8 turns in the December quarter as a result of a full quarter of Altec Lansing and a reduction of Altec Lansing inventory after a seasonally strong quarter for which they had built inventory in September.

-2-

 
Business Outlook 
 
The following statements are based on current information and expectations. For the fourth quarter, we currently estimate that:
 
·
Revenues for the fourth quarter of fiscal 2006 will be approximately $200 to $210 million in total bringing fiscal year revenues to approximately $744 to $754 million. We expect ACG revenues to increase modestly and AEG revenues to decline sharply. (AEG’s revenues are almost entirely derived from retail channels and the consumer audio business is highly seasonal with the December quarter being the strongest historically.)
 
·  Earnings per share for the fourth quarter of fiscal 2006 will be in a range of $0.39 to $0.44. We expect earnings from ACG to increase but to be offset by decreases within AEG. Included in these estimates is our expectation that we will incur $1.8 million in purchase accounting related charges for amortization of intangible assets acquired, against which no tax benefit is available. Based on our estimated range for the fourth quarter, full year EPS are expected to be in the range of $1.56 to $1.61.  
 
Plantronics does not intend to update these estimates except by its next press release announcing its fourth quarter and fiscal year 2006 results, which we plan to release on Tuesday, May 2, 2006. Any statements by persons outside Plantronics speculating on the final outcome of the fourth quarter and the fiscal year will not be based on internal Company information and should be assessed accordingly by investors.
 
We have been evaluating the potential to repatriate cash from offshore earnings and profits under the American Jobs Creation Act, and also evaluating borrowing offshore within that same context. Our analysis is now complete and we have decided not to repatriate cash under this program.
 
Conference Call Scheduled to Discuss Financial Results

Plantronics has scheduled a conference call to discuss the contents of this release. The conference call will take place today, Tuesday, January 24, 2006 at 2:00 PM (PST). All interested investors and potential investors in Plantronics stock are invited to participate. To listen 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. 

 
-3-


A replay of the call with the conference ID #4413105 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 Web site for thirty days.
 
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. Specific forward-looking statements include our estimates of revenues and earnings for the fourth quarter of fiscal 2006. These forward-looking statements involve a number of risks and uncertainties, and are based on current information and management judgment.

Among the factors that could cause actual results to differ materially from those projected are:
 
 
·
Our operating results are difficult to predict;
 
 
·
The market for our products is characterized by rapidly changing technology, short product life cycles, and frequent new product introductions, and we may not be able to develop, manufacture or market new products in response to changing customer requirements and new technologies;
 
 
·
The actions of existing and/or new competitors, especially with regard to pricing and promotional programs;
 
 
·
The inability to successfully develop, manufacture and market new products and achieve volume shipment schedules to meet demand;
 
 
·
If demand for iPod products decreases, demand for certain of our portable products could be negatively affected; 
 
 
·
If Apple does not renew or cancels our licensing agreement, our products may not be compatible with iPods, resulting in loss of revenues and excess inventories, which would negatively impact our financial results;
 
 
·
A softening of the level of market demand for our products within our core contact center market and/or in the newer office, mobile, computer and residential markets;
 
 
·
The entry of new competitors which could be spurred by changes in the regulatory environment, particularly laws requiring the use of hands-free devices by drivers when using cellular telephones;
 
 
·
Variations in sales and profits in higher tax, as compared to lower tax, jurisdictions;
 
 
·
Fluctuations in foreign exchange rates; and
 
 
·
Changes in the regulatory environment either as to headsets directly or as to the products, such as mobile phones, with which our products are used.
 
 
·
Additional risk factors include: changes in the timing and size of orders from our customers, price erosion, increased requirements from retail customers for marketing and advertising funding, failure to match production to demand, interruption in the supply of sole-sourced critical components, continuity of component supply at costs consistent with our plans, failure of our distribution channels to operate as we expect, failure to develop products that keep pace with technological changes, the inherent risks of our substantial foreign operations, problems which might affect our manufacturing facilities in Mexico or in China, further terrorist acts, our nation's response to terrorist attacks and the effects of these activities on capital and consumer spending, and the loss of the services of key executives and employees.
 
 
 

-4-


For more information concerning these and other possible risks, please refer to the Company's Annual Report on Form 10-K filed on May 31, 2005, 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
 
·
Summary Unaudited Condensed Statements of Operations by Segment
 
·
Summary Unaudited Statements of Operations and Related Data

About Plantronics
 
In 1969, a Plantronics headset carried the historic first words from the moon: “That’s one small step for man, one giant leap for mankind.”  Since then, we’ve become the headset of choice for mission-critical applications such as air traffic control, 911 dispatch, and the New York Stock Exchange.  Today, this history of Sound Innovation™ is the basis for every product we build for the office, contact center, personal mobile, entertainment and residential markets. The Plantronics family of brands includes Plantronics, Altec Lansing, Clarity, and Volume Logic. For more information, go to www.plantronics.com or call (800) 544-4660.
 
Plantronics, Altec Lansing, Clarity, VolumeLogic and Sound Innovation are either registered trademarks or trademarks of Plantronics, Inc. Bluetooth is a trademark owned by Bluetooth SIG Inc., and is used by Plantronics under license. All other products or service names mentioned herein are trademarks of their respective owners.
 
 
PLANTRONICS, INC. / 345 Encinal Street / P.O. Box 1802 / Santa Cruz, California 95061-1802
831-426-6060 / Fax 831-426-6098
 
-5-

 
                         
PLANTRONICS, INC.
 
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
(in thousands, except per share data)
 
                           
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                         
 
 
 
Quarter Ended 
 
 
Nine Months Ended
 
 
 
 
December 31, 
 
 
December 31,
 
 
December 31,
 
 
December 31,
 
 
 
 
2004
 
 
2005
 
 
2004
 
 
2005
 
                           
Net revenues
 
$
150,583
 
$
222,512
 
$
412,173
 
$
543,646
 
Cost of revenues
   
75,150
   
128,486
   
197,572
   
302,469
 
Gross profit
   
75,433
   
94,026
   
214,601
   
241,177
 
Gross profit %
   
50.1
%
 
42.3
%
 
52.1
%
 
44.4
%
                           
Research, development and engineering
   
11,989
   
15,980
   
32,871
   
45,868
 
Selling, general and administrative
   
31,642
   
43,130
   
85,867
   
110,845
 
Total operating expenses
   
43,631
   
59,110
   
118,738
   
156,713
 
Operating income 
   
31,802
   
34,916
   
95,863
   
84,464
 
Operating income % 
   
21.1
%
 
15.7
%
 
23.3
%
 
15.5
%
                           
Interest and other income (expense), net
   
2,145
   
(596
)
 
3,393
   
667
 
Income before income taxes
   
33,947
   
34,320
   
99,256
   
85,131
 
Income tax expense
   
9,505
   
12,307
   
27,792
   
27,713
 
Net income 
 
$
24,442
 
$
22,013
 
$
71,464
 
$
57,418
 
                           
% of Net revenues 
   
16.2
%
 
9.9
%
 
17.3
%
 
10.6
%
                           
Diluted earnings per common share
 
$
0.48
 
$
0.46
 
$
1.41
 
$
1.18
 
Shares used in diluted per share calculations
   
51,365
   
48,165
   
50,811
   
48,768
 
                           
UNAUDITED CONSOLIDATED BALANCE SHEETS
                         
 
 
 
March 31, 
 
 
December 31,
 
 
 
 
 
 
 
 
 
 
2005
 
 
2005
 
 
         
ASSETS
                         
Cash and cash equivalents
 
$
78,398
 
$
58,191
             
Short term investments
   
164,416
   
-
             
Total cash, cash equivalents, and 
                         
 short term investments
   
242,814
   
58,191
             
Accounts receivable, net
   
87,558
   
126,169
             
Inventory, net
   
60,201
   
106,573
             
Deferred income taxes
   
8,675
   
14,130
             
Other current assets
   
7,446
   
15,604
             
 Total current assets
   
406,694
   
320,667
             
Property, plant and equipment, net
   
59,745
   
86,792
             
Intangibles, net
   
2,948
   
111,283
             
Goodwill
   
9,386
   
54,003
             
Other assets
   
9,156
   
8,828
             
   
$
487,929
 
$
581,573
             
LIABILITIES AND STOCKHOLDERS' EQUITY
                         
Line of credit
 
$
-
 
$
32,057
             
Accounts payable
   
20,316
   
50,568
             
Accrued liabilities
   
39,775
   
49,691
             
Income taxes payable
   
11,080
   
14,687
             
 Total current liabilities
   
71,171
   
147,003
             
Deferred tax liability
   
8,109
   
28,913
             
Long-term liability
   
2,930
   
1,866
             
 Total liabilities
   
82,210
   
177,782
             
Stockholders' equity
   
405,719
   
403,791
             
   
$
487,929
 
$
581,573
             
 
-6-


AUDIO COMMUNICATIONS GROUP
 
SUMMARY CONDENSED FINANCIAL STATEMENTS
 
(in thousands, except per share data)
 
                           
UNAUDITED STATEMENTS OF OPERATIONS
                         
 
   
Quarter Ended 
 
 
Nine Months Ended
 
 
 
 
December 31, 
 
 
December 31,
 
 
December 31,
 
 
December 31,
 
 
 
 
2004
 
 
2005
 
 
2004
 
 
2005
 
                           
Net revenues
 
$
150,583
 
$
161,519
 
$
412,173
 
$
460,728
 
Cost of revenues
   
75,150
   
86,598
   
197,572
   
244,217
 
Gross profit
   
75,433
   
74,921
   
214,601
   
216,511
 
Gross profit %
   
50.1
%
 
46.4
%
 
52.1
%
 
47.0
%
                           
Research, development and engineering
   
11,989
   
13,936
   
32,871
   
41,873
 
Selling, general and administrative
   
31,642
   
35,193
   
85,867
   
98,969
 
Total operating expenses
   
43,631
   
49,129
   
118,738
   
140,842
 
Operating income 
   
31,802
   
25,792
   
95,863
   
75,669
 
Operating income % 
   
21.1
%
 
16.0
%
 
23.3
%
 
16.4
%
                           
Interest and other income (expense), net
   
2,145
   
858
   
3,393
   
2,841
 
Income before income taxes
   
33,947
   
26,650
   
99,256
   
78,510
 
Income tax expense
   
9,505
   
7,195
   
27,792
   
21,197
 
Net income 
 
$
24,442
 
$
19,455
 
$
71,464
 
$
57,313
 
                           
% of Net revenues 
   
16.2
%
 
12.0
%
 
17.3
%
 
12.4
%
                           
Diluted earnings per common share
 
$
0.48
 
$
0.40
 
$
1.41
 
$
1.18
 
Shares used in diluted per share calculations
   
51,365
   
48,165
   
50,811
   
48,768
 
                           
                           
                           
AUDIO ENTERTAINMENT GROUP
 
SUMMARY CONDENSED FINANCIAL STATEMENTS
 
(in thousands, except per share data)
 
                           
UNAUDITED STATEMENTS OF OPERATIONS
                         
 
 
 
 
 
 
Quarter Ended 
 
 
 
 
 
Nine Months Ended 
 
 
 
 
 
 
 
December 31, 
 
       
December 31,
 
           
2005
 
 
 
 
 
2005
 
                           
Net revenues
       
$
60,993
       
$
82,918
 
Cost of revenues
         
41,888
         
58,252
 
Gross profit
         
19,105
         
24,666
 
Gross profit %
         
31.3
%
       
29.7
%
                           
Research, development and engineering
         
2,044
         
3,995
 
Selling, general and administrative
         
7,937
         
11,876
 
Total operating expenses
         
9,981
         
15,871
 
Operating income 
         
9,124
         
8,795
 
Operating income % 
         
15.0
%
       
10.6
%
                           
Interest and other income (expense), net
         
(1,454
)
       
(2,174
)
Income before income taxes
         
7,670
         
6,621
 
Income tax expense
         
5,112
         
6,516
 
Net income 
       
$
2,558
       
$
105
 
                           
% of
 Net revenues 
         
4.2
%
       
0.1
%
                           
Diluted earnings per common share
       
$
0.05
       
$
0.00
 
Shares used in diluted per share calculations
         
48,165
         
48,768
 
 
-7-

Summary of Unaudited Statements of Operations and Related Data
 
                                                                                       
 
 
 
Q104
 
 
Q204
 
 
Q304
 
 
Q404
 
 
FY04
 
 
Q105
 
 
Q205
 
 
Q305
 
 
Q405
 
 
FY05
 
 
Q106
 
 
Q206 *
 
 
Q306
 
 
FY06 *
 
Net revenues
 
$
92,786
 
$
95,117
 
$
107,622
 
$
121,440
 
$
416,965
 
$
131,370
 
$
130,220
 
$
150,583
 
$
147,822
 
$
559,995
 
$
148,909
 
$
172,225
 
$
222,512
 
$
543,646
 
Cost of revenues
   
47,319
   
46,351
   
51,381
   
55,944
   
200,995
   
61,703
   
60,719
   
75,150
   
73,965
   
271,537
   
75,760
   
98,223
   
128,486
   
302,469
 
Gross profit
   
45,467
   
48,766
   
56,241
   
65,496
   
215,970
   
69,667
   
69,501
   
75,433
   
73,857
   
288,458
   
73,149
   
74,002
   
94,026
   
241,177
 
Gross profit %
   
49.0
%
 
51.3
%
 
52.3
%
 
53.9
%
 
51.8
%
 
53.0
%
 
53.4
%
 
50.1
%
 
50.0
%
 
51.5
%
 
49.1
%
 
43.0
%
 
42.3
%
 
44.4
%
                                                                                       
Research, development and engineering
   
8,605
   
8,247
   
8,834
   
9,774
   
35,460
   
10,044
   
10,838
   
11,989
   
12,345
   
45,216
   
13,766
   
16,122
   
15,980
   
45,868
 
Selling, general and administrative
   
21,153
   
22,984
   
23,649
   
27,970
   
95,756
   
28,920
   
25,305
   
31,642
   
30,754
   
116,621
   
29,892
   
37,823
   
43,130
   
110,845
 
Operating expenses
   
29,758
   
31,231
   
32,483
   
37,744
   
131,216
   
38,964
   
36,143
   
43,631
   
43,099
   
161,837
   
43,658
   
53,945
   
59,110
   
156,713
 
                                                                                       
Operating income
   
15,709
   
17,535
   
23,758
   
27,752
   
84,754
   
30,703
   
33,358
   
31,802
   
30,758
   
126,621
   
29,491
   
20,057
   
34,916
   
84,464
 
Operating income %
   
16.9
%
 
18.4
%
 
22.1
%
 
22.9
%
 
20.3
%
 
23.4
%
 
25.6
%
 
21.1
%
 
20.8
%
 
22.6
%
 
19.8
%
 
11.6
%
 
15.7
%
 
15.5
%
                                                                                       
Income before income taxes
   
16,201
   
17,676
   
25,170
   
27,452
   
86,499
   
31,038
   
34,271
   
33,947
   
31,104
   
130,360
   
29,723
   
21,088
   
34,320
   
85,131
 
Income tax expense
   
4,860
   
5,303
   
7,551
   
6,506
   
24,220
   
8,691
   
9,596
   
9,505
   
5,048
   
32,840
   
8,025
   
7,381
   
12,307
   
27,713
 
Income tax expense as a percent
                                                                                     
of income before taxes
   
30.0
%
 
30.0
%
 
30.0
%
 
23.7
%
 
28.0
%
 
28.0
%
 
28.0
%
 
28.0
%
 
16.2
%
 
25.2
%
 
27.0
%
 
35.0
%
 
35.9
%
 
32.6
%
                                                                                       
Net income
   
11,341
   
12,373
   
17,619
   
20,946
   
62,279
   
22,347
   
24,675
   
24,442
   
26,056
   
97,520
   
21,698
   
13,707
   
22,013
   
57,418
 
Diluted shares outstanding
   
45,077
   
46,372
   
47,501
   
50,068
   
47,492
   
50,428
   
50,638
   
51,365
   
51,026
   
50,821
   
49,335
   
49,007
   
48,165
   
48,768
 
EPS
 
$
0.25
 
$
0.27
 
$
0.37
 
$
0.42
 
$
1.31
 
$
0.44
 
$
0.49
 
$
0.48
 
$
0.51
 
$
1.92
 
$
0.44
 
$
0.28
 
$
0.46
 
$
1.18
 
                                                                                       
Net revenues from unaffiliated customers:
                                                             
Audio Communication Group
                                                                                     
Office and Contact Center
   
62,080
   
64,192
   
66,776
   
80,840
   
273,888
   
82,815
   
86,204
   
92,470
   
104,846
   
366,335
   
105,425
   
107,475
   
114,290
   
327,190
 
Mobile
   
18,518
   
18,370
   
29,528
   
25,914
   
92,330
   
34,458
   
28,815
   
35,469
   
26,520
   
125,262
   
26,868
   
26,682
   
29,973
   
83,523
 
Gaming and Computer
   
5,463
   
5,679
   
5,807
   
6,752
   
23,701
   
6,992
   
8,515
   
15,259
   
9,038
   
39,804
   
9,344
   
8,906
   
9,419
   
27,669
 
Other specialty products
   
6,725
   
6,876
   
5,511
   
7,934
   
27,046
   
7,105
   
6,686
   
7,385
   
7,418
   
28,594
   
7,272
   
7,237
   
7,837
   
22,346
 
Audio Entertainment Group
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
21,925
   
60,993
   
82,918
 
                                                                                       
Net revenues by geographical area from unaffiliated customers:
                                                           
Domestic
   
64,924
   
64,929
   
66,484
   
80,880
   
277,217
   
89,088
   
89,375
   
100,587
   
96,480
   
375,530
   
96,685
   
113,431
   
139,033
   
349,149
 
International
   
27,862
   
30,188
   
41,138
   
40,560
   
139,748
   
42,282
   
40,845
   
49,996
   
51,342
   
184,465
   
52,224
   
58,794
   
83,479
   
194,497
 
                                                                                       
Balance Sheet accounts and metrics:
                                                       
Accounts receivable, net **
   
49,285
   
51,364
   
63,612
   
64,344
   
64,344
   
68,039
   
73,345
   
89,178
   
87,558
   
87,558
   
88,576
   
115,078
   
126,169
   
126,169
 
Days sales outstanding
   
48
   
49
   
53
   
52
         
47
   
51
   
53
   
53
         
54
   
60
   
51
       
Inventory, net
   
37,510
   
37,764
   
39,178
   
40,762
   
40,762
   
47,418
   
65,940
   
75,074
   
60,201
   
60,201
   
56,441
   
99,167
   
106,573
   
106,573
 
Inventory turns
   
5.0
   
4.9
   
5.2
   
5.2
         
5.2
   
3.7
   
4.0
   
4.9
         
5.4
   
4.0
   
4.8
       
                                                                                       
* Includes Altec Lansing since the acquisition as of August 18, 2005.
** Certain balances related to other receivables have been reclassified from accounts receivable, net to other current assets, to represent March 31, 2005 classifications.
 
-8-


EX-99.2 3 exh99_2.htm EXHIBIT 99.2 Q3 06 DIVIDEND DECLARATION ANNOUNCEMENT Exhibit 99.2 Q3 06 Dividend Declaration Announcement


Exhibit 99.2
 
Plantronics Logo
 

PRESS RELEASE
 
Plantronics Declares Quarterly Dividend

FOR INFORMATION, CONTACT:
Jon Alvarado
Treasurer and Director, Investor Relations
(831) 458-7533
FOR IMMEDIATE RELEASE
January 24, 2006
 


 
Santa Cruz, CA - January 24, 2006 - Plantronics, Inc., (NYSE: PLT) today announced that its Board of Directors declared a quarterly dividend of $0.05 per share. The dividend is payable on March 10, 2006 to shareholders of record at the close of business on February 10, 2006.
 
 “We are pleased to announce our seventh consecutive dividend payment to our shareholders,” said Ken Kannappan, President and Chief Executive Officer.
 
About Plantronics
 
In 1969, a Plantronics headset carried the historic first words from the moon: “That’s one small step for man, one giant leap for mankind.”  Since then, we’ve become the headset of choice for mission-critical applications such as air traffic control, 911 dispatch, and the New York Stock Exchange.  Today, this history of Sound Innovation™ is the basis for every product we build for the office, contact center, personal mobile, entertainment and residential markets. The Plantronics family of brands includes Plantronics, Altec Lansing, Clarity, and Volume Logic. For more information, go to www.plantronics.com or call (800) 544-4660.
 
Plantronics, Altec Lansing, Clarity, VolumeLogic and Sound Innovation are either  registered trademarks or trademarks of Plantronics, Inc.  Bluetooth is a trademark owned by Bluetooth SIG Inc., and is used by Plantronics under license. All other products or service names mentioned herein are trademarks of their respective owners.
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