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: | January 31, 2017 | PLANTRONICS, INC. | ||
By: | /s/ Pamela Strayer | |||
Name: | Pamela Strayer | |||
Title: | Senior Vice President and Chief Financial Officer |
INVESTOR CONTACT: Greg Klaben Vice President of Investor Relations (831) 458-7533 | MEDIA CONTACT: George Gutierrez Sr. Director, Global Communications & Content Strategy (831) 458-7537 |
• | Net revenues were $232.9 million, an increase of 3.2% compared with $225.7 million, and within our guidance range of $227 million to $237 million |
• | GAAP gross margin was 47.3% compared with 48.5% |
◦ | Non-GAAP gross margin was 47.6% compared with 48.9% |
• | GAAP operating income was $31.9 million compared with $26.6 million |
◦ | Non-GAAP operating income was $40.7 million compared with $42.9 million |
• | GAAP diluted earnings per share (“EPS”) was $0.68 compared with $0.49, and above our guidance range of $0.57 to $0.67 |
◦ | Non-GAAP diluted EPS was $0.79 compared with $0.83, and within our guidance range of $0.77 to $0.87 |
• | Net revenues of $213 million to $223 million; |
• | GAAP operating income of $29 million to $34 million; |
• | Non-GAAP operating income of $37 million to $42 million, excluding the impact of $8 million from stock-based compensation. |
• | Assuming approximately 33 million diluted average weighted shares outstanding: |
• | GAAP diluted EPS of $0.53 to $0.63; |
• | Non-GAAP diluted EPS of $0.69 to $0.79; and |
• | Cost of stock-based compensation and GAAP only related tax charges to be approximately $0.16 per diluted share. |
• | 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 of 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. |
• |
• |
• |
PLANTRONICS, INC. | |||||||||||||||||
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||
($ in thousands, except per share data) | |||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||||
Net revenues | $ | 225,735 | $ | 232,933 | $ | 647,110 | $ | 672,222 | |||||||||
Cost of revenues | 116,219 | 122,753 | 319,266 | 338,523 | |||||||||||||
Gross profit | 109,516 | 110,180 | 327,844 | 333,699 | |||||||||||||
Gross profit % | 48.5 | % | 47.3 | % | 50.7 | % | 49.6 | % | |||||||||
Research, development, and engineering | 20,811 | 21,393 | 66,614 | 66,116 | |||||||||||||
Selling, general, and administrative | 53,715 | 56,919 | 163,689 | 169,581 | |||||||||||||
(Gain) loss, net from litigation settlements | (91 | ) | (103 | ) | (998 | ) | 4,287 | ||||||||||
Restructuring and other related charges (credits) | 8,433 | 113 | 8,433 | (1,350 | ) | ||||||||||||
Total operating expenses | 82,868 | 78,322 | 237,738 | 238,634 | |||||||||||||
Operating income | 26,648 | 31,858 | 90,106 | 95,065 | |||||||||||||
Operating income % | 11.8 | % | 13.7 | % | 13.9 | % | 14.1 | % | |||||||||
Interest expense | (7,217 | ) | (7,322 | ) | (17,278 | ) | (21,867 | ) | |||||||||
Other non-operating income and (expense), net | 398 | 427 | (2,025 | ) | 4,119 | ||||||||||||
Income before income taxes | 19,829 | 24,963 | 70,803 | 77,317 | |||||||||||||
Income tax expense | 3,541 | 2,742 | 15,391 | 14,235 | |||||||||||||
Net income | $ | 16,288 | $ | 22,221 | $ | 55,412 | $ | 63,082 | |||||||||
% of net revenues | 7.2 | % | 9.5 | % | 8.6 | % | 9.4 | % | |||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.50 | $ | 0.69 | $ | 1.60 | $ | 1.96 | |||||||||
Diluted | $ | 0.49 | $ | 0.68 | $ | 1.56 | $ | 1.92 | |||||||||
Shares used in computing earnings per common share: | |||||||||||||||||
Basic | 32,579 | 32,242 | 34,723 | 32,260 | |||||||||||||
Diluted | 33,259 | 32,826 | 35,588 | 32,895 | |||||||||||||
Effective tax rate | 17.9 | % | 11.0 | % | 21.7 | % | 18.4 | % |
PLANTRONICS, INC. | |||||||||
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||
($ in thousands) | |||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS | |||||||||
March 31, | December 31, | ||||||||
2016 | 2016 | ||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 235,266 | $ | 242,461 | |||||
Short-term investments | 160,051 | 177,442 | |||||||
Total cash, cash equivalents, and short-term investments | 395,317 | 419,903 | |||||||
Accounts receivable, net | 128,219 | 141,297 | |||||||
Inventory, net | 53,162 | 58,026 | |||||||
Other current assets | 20,297 | 26,400 | |||||||
Total current assets | 596,995 | 645,626 | |||||||
Long-term investments | 145,623 | 134,951 | |||||||
Property, plant, and equipment, net | 149,735 | 150,650 | |||||||
Goodwill and purchased intangibles, net | 15,827 | 15,640 | |||||||
Deferred tax and other assets | 25,257 | 25,874 | |||||||
Total assets | $ | 933,437 | $ | 972,741 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Accounts payable | $ | 39,133 | $ | 40,680 | |||||
Accrued liabilities | 70,034 | 66,057 | |||||||
Total current liabilities | 109,167 | 106,737 | |||||||
Long-term debt, net of issuance costs | 489,609 | 490,696 | |||||||
Long-term income taxes payable | 11,968 | 11,726 | |||||||
Other long-term liabilities | 10,294 | 13,462 | |||||||
Total liabilities | 621,038 | 622,621 | |||||||
Stockholders' equity | 312,399 | 350,120 | |||||||
Total liabilities and stockholders' equity | $ | 933,437 | $ | 972,741 | |||||
PLANTRONICS, INC. | |||||||||||||||||
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||
($ in thousands, except per share data) | |||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net Income | $ | 16,288 | $ | 22,221 | $ | 55,412 | $ | 63,082 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 5,019 | 5,359 | 14,838 | 15,624 | |||||||||||||
Amortization of debt issuance cost | 362 | 362 | 845 | 1,087 | |||||||||||||
Stock-based compensation | 7,717 | 8,689 | 24,599 | 25,005 | |||||||||||||
Excess tax benefit from stock-based compensation | (150 | ) | (80 | ) | (3,300 | ) | (1,019 | ) | |||||||||
Deferred income taxes | (622 | ) | (3,252 | ) | 2,185 | (753 | ) | ||||||||||
Provision for excess and obsolete inventories | 235 | (382 | ) | 1,319 | 1,292 | ||||||||||||
Restructuring charges (credits) | 8,433 | 113 | 8,433 | (1,350 | ) | ||||||||||||
Cash payments for restructuring charges | — | (57 | ) | — | (3,793 | ) | |||||||||||
Other operating activities | 2,859 | 1,482 | 5,896 | 633 | |||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Accounts receivable, net | 4,104 | (5,082 | ) | 1,279 | (13,448 | ) | |||||||||||
Inventory, net | 1,814 | (4,888 | ) | (352 | ) | (5,990 | ) | ||||||||||
Current and other assets | 1,926 | (15 | ) | (264 | ) | (2,346 | ) | ||||||||||
Accounts payable | (3,272 | ) | (494 | ) | 5,744 | 3,626 | |||||||||||
Accrued liabilities | (4,512 | ) | (4,253 | ) | (3,841 | ) | 6,191 | ||||||||||
Income taxes | (2,626 | ) | 1,164 | (8,770 | ) | (1,141 | ) | ||||||||||
Cash provided by operating activities | 37,575 | 20,887 | 104,023 | 86,700 | |||||||||||||
Cash flows from investing activities | |||||||||||||||||
Proceeds from sale of investments | 32,061 | 18,127 | 56,890 | 143,631 | |||||||||||||
Proceeds from maturities of investments | 11,490 | 33,400 | 51,895 | 97,253 | |||||||||||||
Purchase of investments | (144,519 | ) | (55,142 | ) | (206,110 | ) | (247,491 | ) | |||||||||
Capital expenditures | (7,885 | ) | (5,412 | ) | (20,977 | ) | (19,603 | ) | |||||||||
Cash used for investing activities | (108,853 | ) | (9,027 | ) | (118,302 | ) | (26,210 | ) | |||||||||
Cash flows from financing activities | |||||||||||||||||
Repurchase of common stock | (9,556 | ) | (7,408 | ) | (482,776 | ) | (34,236 | ) | |||||||||
Employees' tax withheld and paid for restricted stock and restricted stock units | (305 | ) | (321 | ) | (10,804 | ) | (9,444 | ) | |||||||||
Proceeds from issuances under stock-based compensation plans | 783 | 764 | 9,854 | 6,516 | |||||||||||||
Proceeds from revolving line of credit | — | — | 155,749 | — | |||||||||||||
Repayments of revolving line of credit | — | — | (190,249 | ) | — | ||||||||||||
Proceeds from bonds issuance, net | — | — | 488,401 | — | |||||||||||||
Payment of cash dividends | (5,048 | ) | (4,976 | ) | (16,034 | ) | (14,947 | ) | |||||||||
Excess tax benefit from stock-based compensation | 150 | 80 | 3,300 | 1,019 | |||||||||||||
Other financing activities | — | — | — | 761 | |||||||||||||
Cash used for financing activities | (13,976 | ) | (11,861 | ) | (42,559 | ) | (50,331 | ) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (491 | ) | (1,993 | ) | (921 | ) | (2,964 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | (85,745 | ) | (1,994 | ) | (57,759 | ) | 7,195 | ||||||||||
Cash and cash equivalents at beginning of period | 304,836 | 244,455 | 276,850 | 235,266 | |||||||||||||
Cash and cash equivalents at end of period | $ | 219,091 | $ | 242,461 | $ | 219,091 | $ | 242,461 | |||||||||
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 | Nine Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
GAAP Gross profit | $ | 109,516 | $ | 110,180 | $ | 327,844 | $ | 333,699 | ||||||||
Stock-based compensation | 811 | 794 | 2,469 | 2,414 | ||||||||||||
Non-GAAP Gross profit | $ | 110,327 | $ | 110,974 | $ | 330,313 | $ | 336,113 | ||||||||
Non-GAAP Gross profit % | 48.9 | % | 47.6 | % | 51.0 | % | 50.0 | % | ||||||||
GAAP Research, development, and engineering | $ | 20,811 | $ | 21,393 | $ | 66,614 | $ | 66,116 | ||||||||
Stock-based compensation | (2,286 | ) | (1,771 | ) | (7,264 | ) | (6,663 | ) | ||||||||
Purchase accounting amortization | (62 | ) | (62 | ) | (187 | ) | (187 | ) | ||||||||
Non-GAAP Research, development, and engineering | $ | 18,463 | $ | 19,560 | $ | 59,163 | $ | 59,266 | ||||||||
GAAP Selling, general, and administrative | $ | 53,715 | $ | 56,919 | $ | 163,689 | $ | 169,581 | ||||||||
Stock-based compensation | (4,620 | ) | (6,124 | ) | (14,866 | ) | (15,928 | ) | ||||||||
Executive transition costs | — | — | — | (2,759 | ) | |||||||||||
Non-GAAP Selling, general, and administrative | $ | 49,095 | $ | 50,795 | $ | 148,823 | $ | 150,894 | ||||||||
GAAP Operating expenses | $ | 82,868 | $ | 78,322 | $ | 237,738 | $ | 238,634 | ||||||||
Stock-based compensation | (6,906 | ) | (7,895 | ) | (22,130 | ) | (22,591 | ) | ||||||||
Executive transition costs | — | — | — | (2,759 | ) | |||||||||||
Purchase accounting amortization | (62 | ) | (62 | ) | (187 | ) | (187 | ) | ||||||||
Restructuring and other related charges (credits) | (8,433 | ) | (113 | ) | (8,433 | ) | 1,350 | |||||||||
Non-GAAP Operating expenses | $ | 67,467 | $ | 70,252 | $ | 206,988 | $ | 214,447 | ||||||||
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 | Nine Months Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||||||
GAAP Operating income | $ | 26,648 | $ | 31,858 | $ | 90,106 | $ | 95,065 | ||||||||||||
Stock-based compensation | 7,717 | 8,689 | 24,599 | 25,005 | ||||||||||||||||
Executive transition costs | — | — | — | 2,759 | ||||||||||||||||
Purchase accounting amortization | 62 | 62 | 187 | 187 | ||||||||||||||||
Restructuring and other related charges (credits) | 8,433 | 113 | 8,433 | (1,350 | ) | |||||||||||||||
Non-GAAP Operating income | $ | 34,427 | $ | 40,722 | $ | 114,892 | $ | 121,666 | ||||||||||||
GAAP Net income | $ | 16,288 | $ | 22,221 | $ | 55,412 | $ | 63,082 | ||||||||||||
Stock-based compensation | 7,717 | 8,689 | 24,599 | 25,005 | ||||||||||||||||
Executive transition costs | — | — | — | 2,759 | ||||||||||||||||
Purchase accounting amortization | 62 | 62 | 187 | 187 | ||||||||||||||||
Restructuring and other related charges (credits) | 8,433 | 113 | 8,433 | (1,350 | ) | |||||||||||||||
Income tax effect of above items | (3,549 | ) | (3,012 | ) | (8,543 | ) | (9,604 | ) | ||||||||||||
Income tax effect of unusual tax items | (1,419 | ) | (1 | ) | (2,002 | ) | (2 | ) | (2,590 | ) | (1 | ) | (2,141 | ) | (2 | ) | ||||
Non-GAAP Net income | $ | 27,532 | $ | 26,071 | $ | 77,498 | $ | 77,938 | ||||||||||||
GAAP Diluted earnings per common share | $ | 0.49 | $ | 0.68 | $ | 1.56 | $ | 1.92 | ||||||||||||
Stock-based compensation | 0.24 | 0.26 | 0.69 | 0.76 | ||||||||||||||||
Executive transition costs | — | — | — | 0.08 | ||||||||||||||||
Restructuring and other related charges (credits) | 0.25 | — | 0.24 | (0.04 | ) | |||||||||||||||
Income tax effect | (0.15 | ) | (0.15 | ) | (0.31 | ) | (0.35 | ) | ||||||||||||
Non-GAAP Diluted earnings per common share | $ | 0.83 | $ | 0.79 | $ | 2.18 | $ | 2.37 | ||||||||||||
Shares used in diluted earnings per common share calculation | 33,259 | 32,826 | 35,588 | 32,895 |
(1) | Excluded amounts represent tax benefits from the release of tax reserves and federal return to provision adjustments. |
(2) | Excluded amounts represent tax benefits from the release of tax reserves and the impact of tax law changes. |
Summary of Unaudited Reconciliations of GAAP Measures to Non-GAAP Measures and other Unaudited GAAP Data | |||||||||||||||||||||||||||||
($ in thousands, except per share data) | |||||||||||||||||||||||||||||
Q116 | Q216 | Q316 | Q416 | Q117 | Q217 | Q317 | |||||||||||||||||||||||
GAAP Gross profit | $ | 107,358 | $ | 110,970 | $ | 109,516 | $ | 106,830 | $ | 113,073 | $ | 110,446 | $ | 110,180 | |||||||||||||||
Stock-based compensation | 779 | 879 | 811 | 837 | 842 | 778 | 794 | ||||||||||||||||||||||
Non-GAAP Gross profit | $ | 108,137 | $ | 111,849 | $ | 110,327 | $ | 107,667 | $ | 113,915 | $ | 111,224 | $ | 110,974 | |||||||||||||||
Non-GAAP Gross profit % | 52.4 | % | 52.0 | % | 48.9 | % | 51.3 | % | 51.1 | % | 51.4 | % | 47.6 | % | |||||||||||||||
GAAP Operating expenses | $ | 77,996 | $ | 76,874 | $ | 82,868 | $ | 88,895 | $ | 81,822 | $ | 78,490 | $ | 78,322 | |||||||||||||||
Stock-based compensation | (7,271 | ) | (7,953 | ) | (6,906 | ) | (7,829 | ) | (7,571 | ) | (7,125 | ) | (7,895 | ) | |||||||||||||||
Executive transition costs | — | — | — | — | — | (2,759 | ) | — | |||||||||||||||||||||
Purchase accounting amortization | (62 | ) | (63 | ) | (62 | ) | (63 | ) | (62 | ) | (63 | ) | (62 | ) | |||||||||||||||
Restructuring and other related charges (credits) | — | — | (8,433 | ) | (7,727 | ) | 1,048 | 415 | (113 | ) | |||||||||||||||||||
Non-GAAP Operating expenses | $ | 70,663 | $ | 68,858 | $ | 67,467 | $ | 73,276 | $ | 75,237 | $ | 68,958 | $ | 70,252 | |||||||||||||||
GAAP Operating income | $ | 29,362 | $ | 34,096 | $ | 26,648 | $ | 17,935 | $ | 31,251 | $ | 31,956 | $ | 31,858 | |||||||||||||||
Stock-based compensation | 8,050 | 8,832 | 7,717 | 8,666 | 8,413 | 7,903 | 8,689 | ||||||||||||||||||||||
Executive transition costs | — | — | — | — | — | 2,759 | — | ||||||||||||||||||||||
Purchase accounting amortization | 62 | 63 | 62 | 63 | 62 | 63 | 62 | ||||||||||||||||||||||
Restructuring and other related charges (credits) | — | — | 8,433 | 7,727 | (1,048 | ) | (415 | ) | 113 | ||||||||||||||||||||
Non-GAAP Operating income | $ | 37,474 | $ | 42,991 | $ | 42,860 | $ | 34,391 | $ | 38,678 | $ | 42,266 | $ | 40,722 | |||||||||||||||
Non-GAAP Operating income % | 18.2 | % | 20.0 | % | 19.0 | % | 16.4 | % | 17.3 | % | 19.6 | % | 17.5 | % | |||||||||||||||
GAAP Income before income taxes | $ | 26,336 | $ | 24,638 | $ | 19,829 | $ | 11,373 | $ | 26,315 | $ | 26,039 | $ | 24,963 | |||||||||||||||
Stock-based compensation | 8,050 | 8,832 | 7,717 | 8,666 | 8,413 | 7,903 | 8,689 | ||||||||||||||||||||||
Executive transition costs | — | — | — | — | — | 2,759 | — | ||||||||||||||||||||||
Purchase accounting amortization | 62 | 63 | 62 | 63 | 62 | 63 | 62 | ||||||||||||||||||||||
Restructuring and other related charges (credits) | — | — | 8,433 | 7,727 | (1,048 | ) | (415 | ) | 113 | ||||||||||||||||||||
Non-GAAP Income before income taxes | $ | 34,448 | $ | 33,533 | $ | 36,041 | $ | 27,829 | $ | 33,742 | $ | 36,349 | $ | 33,827 | |||||||||||||||
GAAP Income tax expense | $ | 5,108 | $ | 6,742 | $ | 3,541 | $ | (1,607 | ) | $ | 5,928 | $ | 5,565 | $ | 2,742 | ||||||||||||||
Income tax effect of above items | 2,338 | 2,656 | 3,549 | 6,004 | 2,753 | 3,839 | 3,012 | ||||||||||||||||||||||
Income tax effect of unusual tax items | 994 | 177 | 1,419 | 2,386 | 86 | 53 | 2,002 | ||||||||||||||||||||||
Non-GAAP Income tax expense | $ | 8,440 | $ | 9,575 | $ | 8,509 | $ | 6,783 | $ | 8,767 | $ | 9,457 | $ | 7,756 | |||||||||||||||
Non-GAAP Income tax expense as a % of Non-GAAP Income before income taxes | 24.5 | % | 28.6 | % | 23.6 | % | 24.4 | % | 26.0 | % | 26.0 | % | 22.9 | % |
Summary of Unaudited Reconciliations of GAAP Measures to Non-GAAP Measures and other Unaudited GAAP Data (Continued) | |||||||||||||||||||||||||||||
($ in thousands, except per share data) | |||||||||||||||||||||||||||||
Q116 | Q216 | Q316 | Q416 | Q117 | Q217 | Q317 | |||||||||||||||||||||||
GAAP Net income | $ | 21,228 | $ | 17,896 | $ | 16,288 | $ | 12,980 | $ | 20,387 | $ | 20,474 | $ | 22,221 | |||||||||||||||
Stock-based compensation | 8,050 | 8,832 | 7,717 | 8,666 | 8,413 | 7,903 | 8,689 | ||||||||||||||||||||||
Executive transition costs | — | — | — | — | — | 2,759 | — | ||||||||||||||||||||||
Purchase accounting amortization | 62 | 63 | 62 | 63 | 62 | 63 | 62 | ||||||||||||||||||||||
Restructuring and other related charges (credits) | — | — | 8,433 | 7,727 | (1,048 | ) | (415 | ) | 113 | ||||||||||||||||||||
Income tax effect of above items | (2,338 | ) | (2,656 | ) | (3,549 | ) | (6,004 | ) | (2,753 | ) | (3,839 | ) | (3,012 | ) | |||||||||||||||
Income tax effect of unusual tax items | (994 | ) | (177 | ) | (1,419 | ) | (2,386 | ) | (86 | ) | (53 | ) | (2,002 | ) | |||||||||||||||
Non-GAAP Net income | $ | 26,008 | $ | 23,958 | $ | 27,532 | $ | 21,046 | $ | 24,975 | $ | 26,892 | $ | 26,071 | |||||||||||||||
GAAP Diluted earnings per common share | $ | 0.55 | $ | 0.52 | $ | 0.49 | $ | 0.39 | $ | 0.62 | $ | 0.63 | $ | 0.68 | |||||||||||||||
Stock-based compensation | 0.21 | 0.26 | 0.24 | 0.26 | 0.26 | 0.24 | 0.26 | ||||||||||||||||||||||
Executive transition costs | — | — | — | — | — | 0.08 | — | ||||||||||||||||||||||
Restructuring and other related charges (credits) | — | — | 0.25 | 0.23 | (0.03 | ) | (0.01 | ) | — | ||||||||||||||||||||
Income tax effect | (0.09 | ) | (0.08 | ) | (0.15 | ) | (0.24 | ) | (0.09 | ) | (0.12 | ) | (0.15 | ) | |||||||||||||||
Non-GAAP Diluted earnings per common share | $ | 0.67 | $ | 0.70 | $ | 0.83 | $ | 0.64 | $ | 0.76 | $ | 0.82 | $ | 0.79 | |||||||||||||||
Shares used in diluted earnings per common share calculation | 38,943 | 34,245 | 33,259 | 33,038 | 32,818 | 32,726 | 32,826 | ||||||||||||||||||||||
SUMMARY OF UNAUDITED GAAP DATA | |||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||
Net revenues from unaffiliated customers: | |||||||||||||||||||||||||||||
Enterprise | $ | 151,757 | $ | 160,468 | $ | 158,251 | $ | 156,190 | $ | 155,897 | $ | 154,542 | $ | 157,345 | |||||||||||||||
Consumer | 54,601 | 54,549 | 67,484 | 53,607 | 67,209 | 61,641 | 75,588 | ||||||||||||||||||||||
Total net revenues | $ | 206,358 | $ | 215,017 | $ | 225,735 | $ | 209,797 | $ | 223,106 | $ | 216,183 | $ | 232,933 | |||||||||||||||
Net revenues by geographic area from unaffiliated customers: | |||||||||||||||||||||||||||||
Domestic | $ | 117,578 | $ | 123,803 | $ | 122,075 | $ | 119,166 | $ | 128,238 | $ | 119,062 | $ | 123,719 | |||||||||||||||
International | 88,780 | 91,214 | 103,660 | 90,631 | 94,868 | 97,121 | 109,214 | ||||||||||||||||||||||
Total net revenues | $ | 206,358 | $ | 215,017 | $ | 225,735 | $ | 209,797 | $ | 223,106 | $ | 216,183 | $ | 232,933 | |||||||||||||||
Balance Sheet accounts and metrics: | |||||||||||||||||||||||||||||
Accounts receivable, net | $ | 127,160 | $ | 139,939 | $ | 136,402 | $ | 128,219 | $ | 133,155 | $ | 136,779 | $ | 141,297 | |||||||||||||||
Days sales outstanding (DSO) | 55 | 59 | 54 | 59 | 54 | 57 | 55 | ||||||||||||||||||||||
Inventory, net | $ | 55,918 | $ | 57,760 | $ | 55,650 | $ | 53,162 | $ | 53,912 | $ | 52,686 | $ | 58,026 | |||||||||||||||
Inventory turns | 7.1 | 7.2 | 8.3 | 7.7 | 8.2 | 8.0 | 8.5 |
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