[January 29, 2013] |
|
Plantronics Announces Third Quarter Fiscal Year 2013 Results
SANTA CRUZ, Calif. --(Business Wire)--
Plantronics, Inc. (NYSE: PLT) today announced third quarter fiscal year
2013 results. Highlights of the quarter include the following
(comparisons are against the third quarter of fiscal year 2012):
-
Net revenues were $197.4 million, an increase of 8% compared with
$183.2 million.
-
GAAP gross margin was 51.8% compared with 52.5%; non-GAAP gross margin
was 52.2% compared with 52.8%.
-
GAAP operating income was $34.6 million; non-GAAP operating income was
$41.7 million as compared to $37.4 million and $42.0 million,
respectively.
-
GAAP diluted earnings per share ("EPS") was $0.66, a decrease of
$0.05, or 7%, and higher than our guidance of $0.54 to $0.61.
-
Non-GAAP diluted EPS was $0.73, a decrease of $0.02, or 3%, and higher
than our guidance of $0.63 to $0.70.
Q3 GAAP Results
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Q3 2013
|
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Q3 2012
|
|
Change (%)
|
Net revenues
|
|
$197.4 million
|
|
$183.2 million
|
|
7.7%
|
Operating income
|
|
$34.6 million
|
|
$37.4 million
|
|
-7.5%
|
Operating Margin
|
|
17.5%
|
|
20.4%
|
|
|
Diluted EPS
|
|
$0.66
|
|
$0.71
|
|
-7.0%
|
|
|
|
|
|
|
|
Q3 Non-GAAP Results
|
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|
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Q3 2013
|
|
Q3 2012
|
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Change (%)
|
Operating income
|
|
$41.7 million
|
|
$42.0 million
|
|
-0.7%
|
Operating Margin
|
|
21.1%
|
|
22.9%
|
|
|
Diluted EPS
|
|
$0.73
|
|
$0.75
|
|
-2.7%%
|
|
|
|
|
|
|
|
A reconciliation between our GAAP and non-GAAP results is provided in
the tables at the end of this press release.
"We achieved robust growth in Unified Communications ("UC") net revenues
as global adoption of the technology continues," said Ken Kannappan,
President & CEO. "Solid revenue in Office and Contact Center ("OCC")
combined with market share gains in mono Bluetooth in the U.S.
furthered our revenue growth in the quarter."
"We continued to strategically invest in our UC product portfolio to
strengthen our position as a leader in UC, while maintaining
profitability within our long-term target range," said Pam Strayer,
Senior Vice President and Chief Financial Officer. "We are focused on
driving efficiency throughout the company to maximize our long-term
investment in UC."
OCC net revenues increased 5% to $139.4 million compared with $133.3
million in the third quarter of fiscal year 2012 driven by the strength
of our UC revenues. Net revenues from UC products, a subset of OCC, grew
by 43% to $36.1 million in the third quarter of fiscal year 2013
compared with $25.2 million in the third quarter of fiscal year 2012.
Mobile net revenues were $44.1 million in the third quarter of fiscal
year 2013, an increase of $8.1 million, or 23%, from $36.0 million in
the third quarter of fiscal year 2012 primarily as a result of strong
product launches and good product placement in our retail channels.
Dividend Announcement
We also announced that our Board of Directors declared a quarterly
dividend of $0.10 per share. The dividend will be payable on March 11,
2013 to stockholders of record at the close of business on February 20,
2013.
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 ship most orders to
customers within 48 hours of receipt of those orders, and, therefore,
the level of backlog does not provide reliable visibility into potential
future revenues. In addition, our incoming orders have historically been
low during the last two weeks of December and the first half of January,
and have then increased significantly into February and March.
Our business is inherently difficult to forecast, particularly with
continuing uncertainty in global economic conditions, 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 fourth quarter of fiscal year 2013:
-
Net revenues of $190 million to $195 million;
-
GAAP operating income of $33 million to $35 million;
-
Non-GAAP operating income of $39 million to $41 million, excluding the
impact of $6 million from stock-based compensation, accelerated
depreciation, and restructuring costs from GAAP operating income;
-
Assuming approximately 42.7 million diluted average weighted shares
outstanding:
-
GAAP diluted EPS of $0.63 to $0.67;
-
Non-GAAP diluted EPS of $0.68 to $0.72; and
-
Cost of stock-based compensation, accelerated depreciation and
restructuring costs to be approximately $0.09 per diluted share,
with an expected partial offset of approximately $0.04 related to
the retroactive reinstatement of the research and development
("R&D") tax credit in the U.S.
Please see our new 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 third quarter fiscal year
2013 results. The conference call will take place today, January 29,
2013, at 2:00 PM (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 # 70844491 will be available
until February 28, 2013 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 30 days.
Use of Non-GAAP Financial Information
For the periods presented, we have excluded certain non-cash expenses
and charges, net of tax, including stock-based compensation related to
stock options, restricted stock and employee stock purchases, purchase
accounting amortization, accelerated depreciation, restructuring and
other related charges, and an expected retroactive reinstatement of the
R&D tax credit, along with the tax benefits from the expiration of
certain statutes of limitations from non-GAAP operating income, non-GAAP
operating margin and non-GAAP diluted EPS. We exclude these expenses
from our non-GAAP measures primarily because management does not
consider them as 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 to 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, the effective tax rate, 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 expenses and our long-term operating margin target,
(ii) our estimates of GAAP and non-GAAP financial results for the fourth
quarter of fiscal year 2013, including net revenues, operating income
and diluted EPS; (iii) our estimates of stock-based compensation,
accelerated depreciation, restructuring and other related charges, and
tax benefits from the expiration of certain statutes of limitation, and
the retroactive reinstatement of the R&D tax credit for the fourth
quarter of fiscal year 2013, as well as the impact of these non-cash
expenses on Non-GAAP operating income and diluted EPS; and (iv) our
estimate of weighted average shares outstanding for the fourth quarter
of fiscal year 2013, 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 our UC plans and to achieve the 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 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; (iii)
the development of UC solutions is technically complex and this may
delay or limit 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 on a timely basis; (iv) our development of
UC solutions is dependent on our ability to implement and execute new
and different processes in connection with the design, development and
manufacturing of complex electronic systems comprised of hardware,
firmware and software that must work in a wide variety of environments
and multiple variations, which may in some instances increase the risk
of development delays or errors and require the hiring of new
personnel and/or third party contractors which increases our costs;
(v) because UC offerings involve complex integration of hardware and
software with UC infrastructure, our sales model and expertise will
need to continue to evolve; (vi) 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; (vii)
UC solutions may not be adopted with the breadth and speed in the
marketplace that we currently anticipate; and, (viii) 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;
-
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, the inherent risks of our substantial
foreign operations, and problems that might affect our manufacturing
facilities in Mexico; and
-
seasonality in one or more of our business segments.
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 25, 2012 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
-
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)
|
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UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
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|
|
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Three Months Ended December 31,
|
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Nine Months Ended December 31,
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
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2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
197,402
|
|
$
|
183,236
|
|
$
|
558,047
|
|
$
|
535,784
|
Cost of revenues
|
|
|
95,238
|
|
|
87,024
|
|
|
260,959
|
|
|
246,548
|
Gross profit
|
|
|
102,164
|
|
|
96,212
|
|
|
297,088
|
|
|
289,236
|
Gross profit %
|
|
|
51.8%
|
|
|
52.5%
|
|
|
53.2%
|
|
|
54.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research, development and engineering
|
|
|
20,248
|
|
|
16,829
|
|
|
59,525
|
|
|
51,386
|
Selling, general and administrative
|
|
|
45,442
|
|
|
41,976
|
|
|
134,476
|
|
|
128,510
|
Restructuring and other related charges
|
|
|
1,868
|
|
|
-
|
|
|
1,868
|
|
|
-
|
Total operating expenses
|
|
|
67,558
|
|
|
58,805
|
|
|
195,869
|
|
|
179,896
|
Operating income
|
|
|
34,606
|
|
|
37,407
|
|
|
101,219
|
|
|
109,340
|
Operating income %
|
|
|
17.5%
|
|
|
20.4%
|
|
|
18.1%
|
|
|
20.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income, net
|
|
|
177
|
|
|
406
|
|
|
464
|
|
|
989
|
Income before income taxes
|
|
|
34,783
|
|
|
37,813
|
|
|
101,683
|
|
|
110,329
|
Income tax expense
|
|
|
6,577
|
|
|
6,915
|
|
|
23,990
|
|
|
25,179
|
Net income
|
|
$
|
28,206
|
|
$
|
30,898
|
|
$
|
77,693
|
|
$
|
85,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of net revenues
|
|
|
14.3%
|
|
|
16.9%
|
|
|
13.9%
|
|
|
15.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
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Basic
|
|
$
|
0.68
|
|
$
|
0.73
|
|
$
|
1.87
|
|
$
|
1.91
|
Diluted
|
|
$
|
0.66
|
|
$
|
0.71
|
|
$
|
1.82
|
|
$
|
1.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
41,745
|
|
|
42,541
|
|
|
41,629
|
|
|
44,623
|
Diluted
|
|
|
42,618
|
|
|
43,640
|
|
|
42,579
|
|
|
45,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
18.9%
|
|
|
18.3%
|
|
|
23.6%
|
|
|
22.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PLANTRONICS, INC. SUMMARY CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS ($ in thousands)
|
|
|
|
|
|
|
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
December 31, 2012
|
|
March 31, 2012
|
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
196,656
|
|
$
|
209,335
|
Short-term investments
|
|
132,245
|
|
|
125,177
|
Total cash, cash equivalents and short-term investments
|
|
328,901
|
|
|
334,512
|
Accounts receivable, net
|
|
112,677
|
|
|
111,771
|
Inventory, net
|
|
66,905
|
|
|
53,713
|
Deferred tax assets
|
|
11,208
|
|
|
11,090
|
Other current assets
|
|
13,301
|
|
|
13,088
|
Total current assets
|
|
532,992
|
|
|
524,174
|
Long-term investments
|
|
79,619
|
|
|
55,347
|
Property, plant and equipment, net
|
|
93,552
|
|
|
76,159
|
Goodwill and purchased intangibles, net
|
|
16,773
|
|
|
14,388
|
Other assets
|
|
2,521
|
|
|
2,402
|
Total assets
|
$
|
725,457
|
|
$
|
672,470
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Accounts payable
|
$
|
36,012
|
|
$
|
34,126
|
Accrued liabilities
|
|
58,270
|
|
|
52,067
|
Total current liabilities
|
|
94,282
|
|
|
86,193
|
Deferred tax liabilities
|
|
2,158
|
|
|
8,673
|
Long-term income taxes payable
|
|
11,636
|
|
|
12,150
|
Revolving line of credit
|
|
20,000
|
|
|
37,000
|
Other long-term liabilities
|
|
1,008
|
|
|
1,210
|
Total liabilities
|
|
129,084
|
|
|
145,226
|
Stockholders' equity
|
|
596,373
|
|
|
527,244
|
Total liabilities and stockholders' equity
|
$
|
725,457
|
|
$
|
672,470
|
|
|
|
|
|
|
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 December 31,
|
|
Nine Months Ended December 31,
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross profit
|
|
$
|
102,164
|
|
|
$
|
96,212
|
|
|
$
|
297,088
|
|
|
$
|
289,236
|
|
Stock-based compensation
|
|
|
507
|
|
|
|
559
|
|
|
|
1,629
|
|
|
|
1,664
|
|
Accelerated depreciation
|
|
|
318
|
|
|
|
-
|
|
|
|
760
|
|
|
|
-
|
|
Purchase accounting amortization
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
187
|
|
Non-GAAP Gross profit
|
|
$
|
102,989
|
|
|
$
|
96,771
|
|
|
$
|
299,477
|
|
|
$
|
291,087
|
|
Non-GAAP Gross profit %
|
|
|
52.2
|
%
|
|
|
52.8
|
%
|
|
|
53.7
|
%
|
|
|
54.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research, development and engineering
|
|
$
|
20,248
|
|
|
$
|
16,829
|
|
|
$
|
59,525
|
|
|
$
|
51,386
|
|
Stock-based compensation
|
|
|
(1,336
|
)
|
|
|
(953
|
)
|
|
|
(3,716
|
)
|
|
|
(2,928
|
)
|
Accelerated depreciation
|
|
|
(223
|
)
|
|
|
-
|
|
|
|
(506
|
)
|
|
|
-
|
|
Non-GAAP Research, development and engineering
|
|
$
|
18,689
|
|
|
$
|
15,876
|
|
|
$
|
55,303
|
|
|
$
|
48,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Selling, general and administrative
|
|
$
|
45,442
|
|
|
$
|
41,976
|
|
|
$
|
134,476
|
|
|
$
|
128,510
|
|
Stock-based compensation
|
|
|
(2,849
|
)
|
|
|
(3,067
|
)
|
|
|
(8,829
|
)
|
|
|
(8,674
|
)
|
Purchase accounting amortization
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(142
|
)
|
Non-GAAP Selling, general and administrative
|
|
$
|
42,593
|
|
|
$
|
38,909
|
|
|
$
|
125,647
|
|
|
$
|
119,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Restructuring and other related charges
|
|
$
|
1,868
|
|
|
$
|
-
|
|
|
$
|
1,868
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating expenses
|
|
$
|
67,558
|
|
|
$
|
58,805
|
|
|
$
|
195,869
|
|
|
$
|
179,896
|
|
Stock-based compensation
|
|
|
(4,185
|
)
|
|
|
(4,020
|
)
|
|
|
(12,545
|
)
|
|
|
(11,602
|
)
|
Accelerated depreciation
|
|
|
(223
|
)
|
|
|
-
|
|
|
|
(506
|
)
|
|
|
-
|
|
Purchase accounting amortization
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(142
|
)
|
Restructuring and other related charges
|
|
|
(1,868
|
)
|
|
|
-
|
|
|
|
(1,868
|
)
|
|
|
-
|
|
Non-GAAP Operating expenses
|
|
$
|
61,282
|
|
|
$
|
54,785
|
|
|
$
|
180,950
|
|
|
$
|
168,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31,
|
|
|
Nine Months Ended December 31,
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating income
|
|
$
|
34,606
|
|
|
$
|
37,407
|
|
|
$
|
101,219
|
|
|
$
|
109,340
|
|
|
Stock-based compensation
|
|
|
4,692
|
|
|
|
4,579
|
|
|
|
14,174
|
|
|
|
13,266
|
|
|
Accelerated depreciation
|
|
|
541
|
|
|
|
-
|
|
|
|
1,266
|
|
|
|
-
|
|
|
Purchase accounting amortization
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
329
|
|
|
Restructuring and other related charges
|
|
|
1,868
|
|
|
|
-
|
|
|
|
1,868
|
|
|
|
-
|
|
|
Non-GAAP Operating income
|
|
$
|
41,707
|
|
|
$
|
41,986
|
|
|
$
|
118,527
|
|
|
$
|
122,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income
|
|
$
|
28,206
|
|
|
$
|
30,898
|
|
|
$
|
77,693
|
|
|
$
|
85,150
|
|
|
Stock-based compensation
|
|
|
4,692
|
|
|
|
4,579
|
|
|
|
14,174
|
|
|
|
13,266
|
|
|
Accelerated depreciation
|
|
|
541
|
|
|
|
-
|
|
|
|
1,266
|
|
|
|
-
|
|
|
Purchase accounting amortization
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
329
|
|
|
Restructuring and other related charges
|
|
|
1,868
|
|
|
|
-
|
|
|
|
1,868
|
|
|
|
-
|
|
|
Income tax effect
|
|
|
(4,137
|
)
|
(1)
|
|
(2,955
|
)
|
(2)
|
|
(7,206
|
)
|
(1)
|
|
(5,802
|
)
|
(2)
|
Non-GAAP Net income
|
|
$
|
31,170
|
|
|
$
|
32,522
|
|
|
$
|
87,795
|
|
|
$
|
92,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted earnings per common share
|
|
$
|
0.66
|
|
|
$
|
0.71
|
|
|
$
|
1.82
|
|
|
$
|
1.86
|
|
|
Stock-based compensation
|
|
|
0.11
|
|
|
|
0.11
|
|
|
|
0.33
|
|
|
|
0.29
|
|
|
Accelerated depreciation
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.02
|
|
|
|
-
|
|
|
Purchase accounting amortization
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
|
Restructuring and other related charges
|
|
|
0.05
|
|
|
|
-
|
|
|
|
0.05
|
|
|
|
-
|
|
|
Income tax effect
|
|
|
(0.10
|
)
|
|
|
(0.07
|
)
|
|
|
(0.16
|
)
|
|
|
(0.13
|
)
|
|
Non-GAAP Diluted earnings per common share
|
|
$
|
0.73
|
|
|
$
|
0.75
|
|
|
$
|
2.06
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in diluted earnings per common share calculation
|
|
|
42,618
|
|
|
|
43,640
|
|
|
|
42,579
|
|
|
|
45,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excluded amount represents tax benefits from stock-based
compensation, accelerated depreciation, restructuring and other
related charges, and $2,071 related to the expiration of certain
statutes of limitations.
|
(2)
|
Excluded amount represents tax benefits from stock-based
compensation and $1,507 from the expiration of certain statutes of
limitations.
|
(3)
|
Excluded amount represents tax benefits from stock-based
compensation, purchase accounting amortization and $1,507 from the
expiration of certain statutes of limitations.
|
|
|
Use of Non-GAAP Financial Information
|
For the periods presented, we have excluded certain non-cash
expenses and charges, net of tax, including stock-based compensation
related to stock options, restricted stock and employee stock
purchases, purchase accounting amortization, accelerated
depreciation, restructuring and other related charges, along with
tax benefits from the expiration of certain statutes of limitations
from non-GAAP operating income, non-GAAP operating margin and
non-GAAP diluted EPS. We exclude these expenses from our non-GAAP
measures primarily because management does not consider them as part
of our target operating model. We believe that the use of non-GAAP
financial measures provides meaningful supplemental information
regarding our performance and liquidity and helps investors compare
actual results to our long-term target operating model goals. We
believe that both management and investors benefit from referring to
these non-GAAP financial measures in assessing our performance and
when planning, forecasting and analyzing future periods; however,
non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for, or superior to, gross margin,
operating income, operating margin, the effective tax rate, net
income or EPS prepared in accordance with GAAP.
|
|
Summary of Unaudited Reconciliations of GAAP Measures to Non-GAAP
Measures and other Unaudited GAAP Data
|
($ in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q112
|
|
Q212
|
|
Q312
|
|
Q412
|
|
Q113
|
|
Q213
|
|
Q313
|
GAAP Gross profit
|
|
$ 94,058
|
|
|
$ 98,966
|
|
|
$ 96,212
|
|
|
$ 95,115
|
|
|
$ 97,696
|
|
|
$ 97,228
|
|
|
$ 102,164
|
|
Stock-based compensation
|
|
546
|
|
|
559
|
|
|
559
|
|
|
548
|
|
|
596
|
|
|
526
|
|
|
507
|
|
Accelerated depreciation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
124
|
|
|
318
|
|
|
318
|
|
Purchase accounting amortization
|
|
125
|
|
|
62
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Non-GAAP Gross profit
|
|
$ 94,729
|
|
|
$ 99,587
|
|
|
$ 96,771
|
|
|
$ 95,663
|
|
|
$ 98,416
|
|
|
$ 98,072
|
|
|
$ 102,989
|
|
Non-GAAP Gross profit %
|
|
53.9
|
%
|
|
56.3
|
%
|
|
52.8
|
%
|
|
53.9
|
%
|
|
54.3
|
%
|
|
54.7
|
%
|
|
52.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating expenses
|
|
$ 59,022
|
|
|
$ 62,069
|
|
|
$ 58,805
|
|
|
$ 63,102
|
|
|
$ 65,600
|
|
|
$ 62,711
|
|
|
$ 67,558
|
|
Stock-based compensation
|
|
(3,633
|
)
|
|
(3,949
|
)
|
|
(4,020
|
)
|
|
(3,667
|
)
|
|
(4,024
|
)
|
|
(4,336
|
)
|
|
(4,185
|
)
|
Accelerated depreciation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(57
|
)
|
|
(226
|
)
|
|
(223
|
)
|
Purchase accounting amortization
|
|
(71
|
)
|
|
(71
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Restructuring and other related charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,868
|
)
|
Non-GAAP Operating expenses
|
|
$ 55,318
|
|
|
$ 58,049
|
|
|
$ 54,785
|
|
|
$ 59,435
|
|
|
$ 61,519
|
|
|
$ 58,149
|
|
|
$ 61,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating income
|
|
$ 35,036
|
|
|
$ 36,897
|
|
|
$ 37,407
|
|
|
$ 32,013
|
|
|
$ 32,096
|
|
|
$ 34,517
|
|
|
$ 34,606
|
|
Stock-based compensation
|
|
4,179
|
|
|
4,508
|
|
|
4,579
|
|
|
4,215
|
|
|
4,620
|
|
|
4,862
|
|
|
4,692
|
|
Accelerated depreciation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
181
|
|
|
544
|
|
|
541
|
|
Purchase accounting amortization
|
|
196
|
|
|
133
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Restructuring and other related charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,868
|
|
Non-GAAP Operating income
|
|
$ 39,411
|
|
|
$ 41,538
|
|
|
$ 41,986
|
|
|
$ 36,228
|
|
|
$ 36,897
|
|
|
$ 39,923
|
|
|
$ 41,707
|
|
Non-GAAP Operating income %
|
|
22.4
|
%
|
|
23.5
|
%
|
|
22.9
|
%
|
|
20.4
|
%
|
|
20.3
|
%
|
|
22.3
|
%
|
|
21.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income before income taxes
|
|
$ 35,677
|
|
|
$ 36,839
|
|
|
$ 37,813
|
|
|
$ 32,273
|
|
|
$ 32,108
|
|
|
$ 34,792
|
|
|
$ 34,783
|
|
Stock-based compensation
|
|
4,179
|
|
|
4,508
|
|
|
4,579
|
|
|
4,215
|
|
|
4,620
|
|
|
4,862
|
|
|
4,692
|
|
Accelerated depreciation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
181
|
|
|
544
|
|
|
541
|
|
Purchase accounting amortization
|
|
196
|
|
|
133
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Restructuring and other related charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,868
|
|
Non-GAAP Income before income taxes
|
|
$ 40,052
|
|
|
$ 41,480
|
|
|
$ 42,392
|
|
|
$ 36,488
|
|
|
$ 36,909
|
|
|
$ 40,198
|
|
|
$ 41,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income tax expense
|
|
$ 8,946
|
|
|
$ 9,318
|
|
|
$ 6,915
|
|
|
$ 8,387
|
|
|
$ 8,545
|
|
|
$ 8,868
|
|
|
$ 6,577
|
|
Income tax effect of stock-based compensation
|
|
1,282
|
|
|
1,441
|
|
|
1,448
|
|
|
1,292
|
|
|
1,382
|
|
|
1,532
|
|
|
1,342
|
|
Income tax effect of accelerated depreciation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
39
|
|
|
116
|
|
|
124
|
|
Income tax effect of purchase accounting amortization
|
|
74
|
|
|
50
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Income tax effect of restructuring and other related charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
600
|
|
Tax benefit from the expiration of certain statutes of limitations
|
|
-
|
|
|
-
|
|
|
1,507
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,071
|
|
Non-GAAP Income tax expense
|
|
$ 10,302
|
|
|
$ 10,809
|
|
|
$ 9,870
|
|
|
$ 9,679
|
|
|
$ 9,966
|
|
|
$ 10,516
|
|
|
$ 10,714
|
|
Non-GAAP Income tax expense as a % of Non-GAAP Income before
income taxes
|
|
25.7
|
%
|
|
26.1
|
%
|
|
23.3
|
%
|
|
26.5
|
%
|
|
27.0
|
%
|
|
26.2
|
%
|
|
25.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Unaudited Reconciliations of GAAP Measures to Non-GAAP
Measures and other Unaudited GAAP Data (Continued)
|
($ in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q112
|
|
Q212
|
|
Q312
|
|
Q412
|
|
Q113
|
|
Q213
|
|
Q313
|
GAAP Net income
|
|
$ 26,731
|
|
|
$ 27,521
|
|
|
$ 30,898
|
|
|
$ 23,886
|
|
|
$ 23,563
|
|
|
$ 25,924
|
|
|
$ 28,206
|
|
Stock-based compensation
|
|
4,179
|
|
|
4,508
|
|
|
4,579
|
|
|
4,215
|
|
|
4,620
|
|
|
4,862
|
|
|
4,692
|
|
Accelerated depreciation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
181
|
|
|
544
|
|
|
541
|
|
Purchase accounting amortization
|
|
196
|
|
|
133
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Restructuring and other related charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,868
|
|
Income tax effect
|
|
(1,356
|
)
|
|
(1,491
|
)
|
|
(2,955
|
)
|
|
(1,292
|
)
|
|
(1,421
|
)
|
|
(1,648
|
)
|
|
(4,137
|
)
|
Non-GAAP Net income
|
|
$ 29,750
|
|
|
$ 30,671
|
|
|
$ 32,522
|
|
|
$ 26,809
|
|
|
$ 26,943
|
|
|
$ 29,682
|
|
|
$ 31,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted earnings per common share
|
|
$ 0.56
|
|
|
$ 0.60
|
|
|
$ 0.71
|
|
|
$ 0.55
|
|
|
$ 0.55
|
|
|
$ 0.61
|
|
|
$ 0.66
|
|
Stock-based compensation
|
|
0.09
|
|
|
0.10
|
|
|
0.11
|
|
|
0.10
|
|
|
0.11
|
|
|
0.11
|
|
|
0.11
|
|
Accelerated depreciation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.01
|
|
|
0.01
|
|
Restructuring and other related charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.05
|
|
Income tax effect
|
|
(0.03
|
)
|
|
(0.03
|
)
|
|
(0.07
|
)
|
|
(0.03
|
)
|
|
(0.03
|
)
|
|
(0.03
|
)
|
|
(0.10
|
)
|
Non-GAAP Diluted earnings per common share
|
|
$ 0.62
|
|
|
$ 0.67
|
|
|
$ 0.75
|
|
|
$ 0.62
|
|
|
$ 0.63
|
|
|
$ 0.70
|
|
|
$ 0.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in diluted earnings per common share calculation
|
|
48,060
|
|
|
45,717
|
|
|
43,640
|
|
|
43,329
|
|
|
42,570
|
|
|
42,403
|
|
|
42,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARY OF UNAUDITED GAAP DATA
|
($ in thousands)
|
Net revenues from unaffiliated customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office and Contact Center
|
|
$ 130,999
|
|
|
$ 136,395
|
|
|
$ 133,335
|
|
|
$ 130,980
|
|
|
$ 134,033
|
|
|
$ 133,119
|
|
|
$ 139,449
|
|
Mobile
|
|
32,164
|
|
|
28,341
|
|
|
36,024
|
|
|
35,296
|
|
|
36,157
|
|
|
33,305
|
|
|
44,138
|
|
Gaming and Computer Audio
|
|
7,395
|
|
|
8,381
|
|
|
9,209
|
|
|
6,870
|
|
|
6,789
|
|
|
7,797
|
|
|
9,024
|
|
Clarity
|
|
5,042
|
|
|
3,831
|
|
|
4,668
|
|
|
4,438
|
|
|
4,386
|
|
|
5,059
|
|
|
4,791
|
|
Total net revenues
|
|
$ 175,600
|
|
|
$ 176,948
|
|
|
$ 183,236
|
|
|
$ 177,584
|
|
|
$ 181,365
|
|
|
$ 179,280
|
|
|
$ 197,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues by geographic area from unaffiliated customers:
|
|
|
|
|
|
Domestic
|
|
$ 100,291
|
|
|
$ 101,196
|
|
|
$ 99,070
|
|
|
$ 105,676
|
|
|
$ 104,078
|
|
|
$ 107,513
|
|
|
$ 111,847
|
|
International
|
|
75,309
|
|
|
75,752
|
|
|
84,166
|
|
|
71,908
|
|
|
77,287
|
|
|
71,767
|
|
|
85,555
|
|
Total net revenues
|
|
$ 175,600
|
|
|
$ 176,948
|
|
|
$ 183,236
|
|
|
$ 177,584
|
|
|
$ 181,365
|
|
|
$ 179,280
|
|
|
$ 197,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet accounts and metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
$ 108,516
|
|
|
$ 103,026
|
|
|
$ 109,677
|
|
|
$ 111,771
|
|
|
$ 108,300
|
|
|
$ 108,070
|
|
|
$ 112,677
|
|
Days sales outstanding (DSO)
|
|
56
|
|
|
52
|
|
|
54
|
|
|
57
|
|
|
54
|
|
|
54
|
|
|
51
|
|
Inventory, net
|
|
$ 57,697
|
|
|
$ 60,717
|
|
|
$ 57,799
|
|
|
$ 53,713
|
|
|
$ 58,932
|
|
|
$ 61,639
|
|
|
$ 66,905
|
|
Inventory turns
|
|
5.7
|
|
|
5.1
|
|
|
6.0
|
|
|
6.1
|
|
|
5.7
|
|
|
5.3
|
|
|
5.7
|
|
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|