Delaware | 1-12696 | 77-0207692 |
(State or Other Jurisdiction of Incorporation) | (Commission file number) | (I.R.S. Employer Identification No.) |
Not Applicable |
(Former name or former address, if changed since last report) |
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)) |
Date: November 1, 2011 | PLANTRONICS, INC. | ||
By: | /s/ Barbara Scherer | ||
Name: | Barbara Scherer | ||
Title: | Senior Vice President - Finance and Administration and Chief Financial Officer |
INVESTOR CONTACT: Greg Klaben Vice President of Investor Relations (831) 458-7533 | MEDIA CONTACT: Russell Castronovo Director of Global Communications (831) 458-7598 |
• | Net revenues of $175 million to $185 million; |
• | GAAP operating income of $31 million to $37 million; |
• | Non-GAAP operating income of $36 million to $41 million; |
• | Assuming approximately 43.7 million diluted average weighted shares outstanding: |
• | GAAP diluted earnings per share of $0.53 to $0.63; |
• | Non-GAAP diluted earnings per share of $0.60 to $0.70; and |
• | Diluted earnings per share cost of stock-based compensation to be approximately $0.07. |
• | economic conditions in both the domestic and international markets; |
• | our ability to realize our 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) UC solutions may not be adopted with the breadth and speed in the marketplace that we currently anticipate; (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; and, (v) our plans are dependent upon adoption of our UC solution by major platform providers such as Microsoft Corporation, Cisco Systems, Inc., Avaya, Inc., Alcatel-Lucent, and IBM, 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, and 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 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 and could negatively affect our profitability and/or market share; |
• | 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; 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. |
• |
• |
• |
PLANTRONICS, INC. | ||||||||||||||||
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||
($ in thousands, except per share data) | ||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net revenues | $ | 176,948 | $ | 158,255 | $ | 352,548 | $ | 328,940 | ||||||||
Cost of revenues | 77,982 | 72,296 | 159,524 | 153,533 | ||||||||||||
Gross profit | 98,966 | 85,959 | 193,024 | 175,407 | ||||||||||||
Gross profit % | 55.9 | % | 54.3 | % | 54.8 | % | 53.3 | % | ||||||||
Research, development and engineering | 17,651 | 15,206 | 34,557 | 30,107 | ||||||||||||
Selling, general and administrative | 44,418 | 36,742 | 86,534 | 75,428 | ||||||||||||
Total operating expenses | 62,069 | 51,948 | 121,091 | 105,535 | ||||||||||||
Operating income | 36,897 | 34,011 | 71,933 | 69,872 | ||||||||||||
Operating income % | 20.9 | % | 21.5 | % | 20.4 | % | 21.2 | % | ||||||||
Interest and other income (expense), net | (58 | ) | 1,017 | 583 | 635 | |||||||||||
Income before income taxes | 36,839 | 35,028 | 72,516 | 70,507 | ||||||||||||
Income tax expense | 9,318 | 9,599 | 18,264 | 19,132 | ||||||||||||
Net income | $ | 27,521 | $ | 25,429 | $ | 54,252 | $ | 51,375 | ||||||||
% of net revenues | 15.6 | % | 16.1 | % | 15.4 | % | 15.6 | % | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.62 | $ | 0.54 | $ | 1.19 | $ | 1.08 | ||||||||
Diluted | $ | 0.60 | $ | 0.52 | $ | 1.16 | $ | 1.05 | ||||||||
Shares used in computing earnings per common share: | ||||||||||||||||
Basic | 44,556 | 47,087 | 45,664 | 47,607 | ||||||||||||
Diluted | 45,717 | 48,524 | 46,950 | 49,148 | ||||||||||||
Effective tax rate | 25.3 | % | 27.4 | % | 25.2 | % | 27.1 | % |
PLANTRONICS, INC. | ||||||||
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||||||||
($ in thousands, except per share data) | ||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS | ||||||||
September 30, | March 31, | |||||||
2011 | 2011 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 185,377 | $ | 284,375 | ||||
Short-term investments | 104,582 | 145,581 | ||||||
Total cash, cash equivalents and short-term investments | 289,959 | 429,956 | ||||||
Accounts receivable, net | 103,026 | 103,289 | ||||||
Inventory, net | 60,717 | 56,473 | ||||||
Deferred tax asset | 12,264 | 11,349 | ||||||
Other current assets | 14,356 | 16,653 | ||||||
Total current assets | 480,322 | 617,720 | ||||||
Long-term investments | 59,030 | 39,332 | ||||||
Property, plant and equipment, net | 74,249 | 70,622 | ||||||
Goodwill and purchased intangibles, net | 14,531 | 14,861 | ||||||
Other assets | 2,108 | 2,112 | ||||||
Total assets | $ | 630,240 | $ | 744,647 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable | $ | 25,112 | $ | 33,995 | ||||
Accrued liabilities | 51,329 | 59,607 | ||||||
Total current liabilities | 76,441 | 93,602 | ||||||
Deferred tax liability | 5,632 | 3,526 | ||||||
Long-term income taxes payable | 13,436 | 11,524 | ||||||
Revolving line of credit | 17,500 | — | ||||||
Other long-term liabilities | 1,080 | 1,143 | ||||||
Total liabilities | 114,089 | 109,795 | ||||||
Stockholders' equity | 516,151 | 634,852 | ||||||
Total liabilities and stockholders' equity | $ | 630,240 | $ | 744,647 |
PLANTRONICS, INC. | |||||||||||||||||||||||
UNAUDITED GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||||||||
($ in thousands, except per share data) | |||||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
September 30, 2011 | September 30, 2011 | ||||||||||||||||||||||
GAAP | Excluded | Non-GAAP | GAAP | Excluded | Non-GAAP | ||||||||||||||||||
Net revenues | $ | 176,948 | $ | — | $ | 176,948 | $ | 352,548 | $ | — | $ | 352,548 | |||||||||||
Cost of revenues | 77,982 | (621 | ) | (1) | 77,361 | 159,524 | (1,292 | ) | (1) | 158,232 | |||||||||||||
Gross profit | 98,966 | 621 | 99,587 | 193,024 | 1,292 | 194,316 | |||||||||||||||||
Gross profit % | 55.9 | % | 56.3 | % | 54.8 | % | 55.1 | % | |||||||||||||||
Research, development and engineering | 17,651 | (1,028 | ) | (2) | 16,623 | 34,557 | (1,975 | ) | (2) | 32,582 | |||||||||||||
Selling, general and administrative | 44,418 | (2,992 | ) | (1) | 41,426 | 86,534 | (5,749 | ) | (1) | 80,785 | |||||||||||||
Total operating expenses | 62,069 | (4,020 | ) | 58,049 | 121,091 | (7,724 | ) | 113,367 | |||||||||||||||
Operating income | 36,897 | 4,641 | 41,538 | 71,933 | 9,016 | 80,949 | |||||||||||||||||
Operating income % | 20.9 | % | 23.5 | % | 20.4 | % | 23.0 | % | |||||||||||||||
Interest and other income (expense), net | (58 | ) | — | (58 | ) | 583 | — | 583 | |||||||||||||||
Income before income taxes | 36,839 | 4,641 | 41,480 | 72,516 | 9,016 | 81,532 | |||||||||||||||||
Income tax expense | 9,318 | 1,491 | (3) | 10,809 | 18,264 | 2,847 | (3) | 21,111 | |||||||||||||||
Net income | $ | 27,521 | $ | 3,150 | $ | 30,671 | $ | 54,252 | $ | 6,169 | $ | 60,421 | |||||||||||
% of net revenues | 15.6 | % | 17.3 | % | 15.4 | % | 17.1 | % | |||||||||||||||
Diluted earnings per common share | $ | 0.60 | $ | 0.67 | $ | 1.16 | $ | 1.29 | |||||||||||||||
Shares used in diluted earnings per share calculations | 45,717 | 45,717 | 46,950 | 46,950 |
(1) | Excluded amount represents stock-based compensation and purchase accounting amortization. |
(2) | Excluded amount represents stock-based compensation. |
(3) | Excluded amount represents tax benefit from stock-based compensation and purchase accounting amortization. |
PLANTRONICS, INC. | |||||||||||||||||||||||
UNAUDITED GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||||||||||
($ in thousands, except per share data) | |||||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
September 30, 2010 | September 30, 2010 | ||||||||||||||||||||||
GAAP | Excluded | Non-GAAP | GAAP | Excluded | Non-GAAP | ||||||||||||||||||
Net revenues | $ | 158,255 | $ | — | $ | 158,255 | $ | 328,940 | $ | — | $ | 328,940 | |||||||||||
Cost of revenues | 72,296 | (777 | ) | (1) | 71,519 | 153,533 | (1,530 | ) | (1) | 152,003 | |||||||||||||
Gross profit | 85,959 | 777 | 86,736 | 175,407 | 1,530 | 176,937 | |||||||||||||||||
Gross profit % | 54.3 | % | 54.8 | % | 53.3 | % | 53.8 | % | |||||||||||||||
Research, development and engineering | 15,206 | (993 | ) | (1) | 14,213 | 30,107 | (1,971 | ) | (1) | 28,136 | |||||||||||||
Selling, general and administrative | 36,742 | (2,551 | ) | (1) | 34,191 | 75,428 | (4,964 | ) | (1) | 70,464 | |||||||||||||
Total operating expenses | 51,948 | (3,544 | ) | 48,404 | 105,535 | (6,935 | ) | 98,600 | |||||||||||||||
Operating income | 34,011 | 4,321 | 38,332 | 69,872 | 8,465 | 78,337 | |||||||||||||||||
Operating income % | 21.5 | % | 24.2 | % | 21.2 | % | 23.8 | % | |||||||||||||||
Interest and other income, net | 1,017 | — | 1,017 | 635 | — | 635 | |||||||||||||||||
Income before income taxes | 35,028 | 4,321 | 39,349 | 70,507 | 8,465 | 78,972 | |||||||||||||||||
Income tax expense | 9,599 | 1,421 | (2) | 11,020 | 19,132 | 2,599 | (2) | 21,731 | |||||||||||||||
Net income | $ | 25,429 | $ | 2,900 | $ | 28,329 | $ | 51,375 | $ | 5,866 | $ | 57,241 | |||||||||||
% of net revenues | 16.1 | % | 17.9 | % | 15.6 | % | 17.4 | % | |||||||||||||||
Diluted earnings per common share | $ | 0.52 | $ | 0.58 | $ | 1.05 | $ | 1.16 | |||||||||||||||
Shares used in diluted earnings per share calculations | 48,524 | 48,524 | 49,148 | 49,148 |
(1) | Excluded amount represents stock-based compensation and purchase accounting amortization. |
(2) | Excluded amount represents tax benefit from stock-based compensation and purchase accounting amortization. |
Summary of Unaudited Statements of Operations and Related Data - Non-GAAP | ||||||||||||||||||||||||
($ in thousands, except per share data) | ||||||||||||||||||||||||
Q111 | Q211 | Q311 | Q411 | Q112 | Q212 | |||||||||||||||||||
Net revenues | $ | 170,685 | $ | 158,255 | $ | 181,585 | $ | 173,077 | $ | 175,600 | $ | 176,948 | ||||||||||||
Cost of revenues | 80,484 | 71,519 | 84,990 | 80,394 | 80,871 | 77,361 | ||||||||||||||||||
Gross profit | 90,201 | 86,736 | 96,595 | 92,683 | 94,729 | 99,587 | ||||||||||||||||||
Gross profit % | 52.8 | % | 54.8 | % | 53.2 | % | 53.6 | % | 53.9 | % | 56.3 | % | ||||||||||||
Research, development and engineering | 13,923 | 14,213 | 15,406 | 15,800 | 15,959 | 16,623 | ||||||||||||||||||
Selling, general and administrative | 36,273 | 34,191 | 40,604 | 42,095 | 39,359 | 41,426 | ||||||||||||||||||
Gain from litigation settlement | — | — | — | (5,100 | ) | — | — | |||||||||||||||||
Operating expenses | 50,196 | 48,404 | 56,010 | 52,795 | 55,318 | 58,049 | ||||||||||||||||||
Operating income | 40,005 | 38,332 | 40,585 | 39,888 | 39,411 | 41,538 | ||||||||||||||||||
Operating income % | 23.4 | % | 24.2 | % | 22.4 | % | 23.0 | % | 22.4 | % | 23.5 | % | ||||||||||||
Income before income taxes | 39,623 | 39,349 | 40,565 | 39,217 | 40,052 | 41,480 | ||||||||||||||||||
Income tax expense | 10,711 | 11,020 | 7,983 | 9,681 | 10,302 | 10,809 | ||||||||||||||||||
Income tax expense as a percent of income before taxes | 27.0 | % | 28.0 | % | 19.7 | % | 24.7 | % | 25.7 | % | 26.1 | % | ||||||||||||
Net income | $ | 28,912 | $ | 28,329 | $ | 32,582 | $ | 29,536 | $ | 29,750 | $ | 30,671 | ||||||||||||
Diluted earnings per share | $ | 0.58 | $ | 0.58 | $ | 0.66 | $ | 0.60 | $ | 0.62 | $ | 0.67 | ||||||||||||
Diluted shares outstanding | 49,714 | 48,524 | 49,431 | 49,464 | 48,060 | 45,717 | ||||||||||||||||||
Net revenues from unaffiliated customers: | ||||||||||||||||||||||||
Office and Contact Center | $ | 117,580 | $ | 117,951 | $ | 122,949 | $ | 131,992 | $ | 130,999 | $ | 136,395 | ||||||||||||
Mobile | 38,657 | 27,581 | 43,208 | 28,084 | 32,164 | 28,341 | ||||||||||||||||||
Gaming and Computer Audio | 9,325 | 8,179 | 10,544 | 8,688 | 7,395 | 8,381 | ||||||||||||||||||
Clarity | 5,123 | 4,544 | 4,884 | 4,313 | 5,042 | 3,831 | ||||||||||||||||||
Total net revenues | $ | 170,685 | $ | 158,255 | $ | 181,585 | $ | 173,077 | $ | 175,600 | $ | 176,948 | ||||||||||||
Net revenues by geographic area from unaffiliated customers: | ||||||||||||||||||||||||
Domestic | $ | 103,992 | $ | 96,100 | $ | 104,299 | $ | 95,901 | $ | 100,291 | $ | 101,196 | ||||||||||||
International | 66,693 | 62,155 | 77,286 | 77,176 | 75,309 | 75,752 | ||||||||||||||||||
Total net revenues | $ | 170,685 | $ | 158,255 | $ | 181,585 | $ | 173,077 | $ | 175,600 | $ | 176,948 | ||||||||||||
Balance Sheet accounts and metrics: | ||||||||||||||||||||||||
Accounts receivable, net | $ | 96,850 | $ | 94,989 | $ | 111,514 | $ | 103,289 | $ | 108,516 | $ | 103,026 | ||||||||||||
Days sales outstanding (DSO) | 51 | 54 | 55 | 54 | 56 | 52 | ||||||||||||||||||
Inventory, net | $ | 78,224 | $ | 69,845 | $ | 64,032 | $ | 56,473 | $ | 57,697 | $ | 60,717 | ||||||||||||
Inventory turns | 4.1 | 4.1 | 5.3 | 5.7 | 5.6 | 5.1 |
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