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Plantronics Announces Third Quarter Results
[January 27, 2009]

Plantronics Announces Third Quarter Results

(Marketwire Via Acquire Media NewsEdge) SANTA CRUZ, CA, January 27 / MARKET WIRE/ --

Plantronics, Inc. (NYSE: PLT) today
announced third quarter fiscal 2009 net revenues of $182.8 million compared
with $232.8 million in the third quarter of fiscal 2008. Plantronics' GAAP
diluted loss per share was $1.90 in the third quarter of fiscal 2009
compared with earnings per share of $0.39 in the same quarter of the prior
year. Non-GAAP diluted earnings per share for the current quarter was
$0.08 compared with $0.53 in the third quarter of fiscal 2008. The Company
took a $117.5 million non-cash asset impairment charge on the carrying
value of some of its goodwill and long-lived assets exclusive of the $23.9
million related tax benefit. The difference between GAAP and non-GAAP
earnings per share for the current quarter includes goodwill and asset
impairment charges, purchase accounting amortization, restructuring and
other related costs, the cost of stock-based compensation, and the release
of tax reserves due to expiration of certain statutes of limitation.

"Worsening economic conditions affected all parts of our business and make
us cautious about the outlook for fiscal 2010. As announced on January
14th, we have taken significant steps to reduce our cost structure with the
objective of being profitable and cash flow positive through this economic
cycle while continuing to focus on core strategic initiatives such as
Unified Communications. Our focus on inventory reduction in the December
quarter resulted in a reduction of more than $25 million or approximately
16%, and enabled us to remain cash flow positive in the quarter," said Ken
Kannappan, President and CEO. "We've made progress in our consumer
businesses by introducing competitive products, gaining market share and
reducing costs. However, it's clear that this economic cycle will require
further actions to improve profitability and we are actively evaluating our
alternatives," Kannappan concluded.

Audio Communications Group (ACG) Non-GAAP Results
(Office & Contact Center, Mobile, Gaming and Computer, Other)
Comparisons are to the Same Quarter in the Prior Year

Third quarter fiscal 2009 net revenues of $152.6 million were down 22.1%
compared with $196.0 million, with weakness in all geographies and product
groups other than our Clarity products. Office and Contact Center revenue
of $101.7 million declined 22.4%, with office corded products revenue
declining 21% while office cordless products revenue declined 24%.
Bluetooth headset revenue was $33.6 million, down 22%, and Gaming &
Computer products revenue was $8.5 million, down 18%.

Gross margin in the third quarter of fiscal 2009 was 40.1% compared with
46.2% in the year-ago quarter. The lower gross margin was due to poor
overall factory utilization and lower Bluetooth gross margin as the result
of higher warranty costs. Operating income decreased to $9.0 million from
$35.4 million, and the operating margin was 5.9% compared with 18.1%.
Operating expenses declined by 5.4% from $55.2 million to $52.2 million.

The Company continues to believe that the implementation of Unified
Communications (UC) technologies by large corporations will be a
significant long-term driver of office headset adoption, and as a result, a
key long-term driver of revenue and profit growth. "Despite weak economic
conditions, trial deployments of UC solutions and headsets continue to
grow, with some evidence that the cost savings and productivity
enhancements derived from UC are driving the expansion of existing
deployments in both in the U.S. and Europe. This is encouraging, but
further growth during the recession may be unlikely," stated Kannappan.

Audio Entertainment Group (AEG) Non-GAAP Results
(Docking Audio, PC Audio, Other)
Comparisons are to the Same Quarter in the Prior Year

Third quarter fiscal 2009 net revenues of $30.2 million were down 18.0%
from $36.9 million driven by the exceptionally weak holiday season in the
U.S. and weak consumer spending globally. As a result of this, all product
lines were down versus the year ago quarter despite better product
placements.

Gross margin declined from $5.0 million to $1.1 million or 13.5% to 3.6% as
a result of higher requirements for inventory provisions and makers'
claims, foreign exchange, and the overall composition of revenue. Relative
to our internal plans and the related guidance for the quarter, the
principal factors which caused the shortfall in gross profit were rework
and expediting costs on a key product line, the negative impact of foreign
exchange movements and the composition of revenue.

Operating expenses declined 28.5% from $8.3 million to $5.9 million.
Despite the progress on the cost structure, the operating loss increased
from $3.3 million to $4.8 million as a result of the lower gross margin.

Business Outlook

The following statements are based on current expectations. As described
in "Safe Harbor" below, many of these statements are forward-looking.
Actual results are subject to a variety of risks and uncertainties and may
differ materially from the forward-looking statements.

We have a "book and ship" business model whereby we ship most orders to our
customers within 48 hours of our receipt of those orders, and we thus
cannot rely on the level of backlog to provide visibility into potential
future revenues. Our business is inherently difficult to forecast, and
there can be no assurance that the incoming orders we expect to receive
over the balance of the quarter will materialize. With increasing economic
uncertainty, our business is even more difficult to forecast than usual.
On January 14, 2009, we announced a series of actions to lower our cost
structure and improve efficiencies. These actions include a restructuring
plan to reduce our worldwide workforce by approximately 18% in comparison
to September 30, 2008, along with other cost cutting measures including
management salary reductions and decreases in other operating expenses. As
a result of the reduction in the worldwide workforce, we expect to record
restructuring and other related charges, primarily for employee termination
benefits, of approximately $7.7 to $8.2 million in total, of which $1
million was recognized in the third quarter. We expect the balance of $6.7
million to $7.2 million to be recognized in the fourth quarter of fiscal
2009. Annualized savings from the cost reductions are expected to be over
$50 million in fiscal 2010 compared with our annualized expenditure level
in the second quarter of fiscal 2009. In addition, the Company plans an
approximate 50% reduction in capital expenditures for fiscal year 2010.

Revenues in all portions of our business are expected to decline in the
fourth quarter. Gross margins are expected to be under pressure due to
lower production, a weak demand environment and competitive pricing in the
Bluetooth segment. Non-GAAP operating expenses are expected to decline
further in the fourth quarter as a result of the restructuring activities
announced on January 14, 2009. In addition the company remains committed
to managing expenses in line with its goal of remaining profitable and
positive cash flow generation.

Subject to the foregoing, we are currently expecting the following
financial results for the fourth quarter of fiscal 2009:

-- Net revenues for the fourth quarter of fiscal 2009 to be in the range
of $125 - $135 million;
-- A Non-GAAP operating loss of $4 - $10 million;
-- A GAAP loss.


Plantronics does not intend to update these targets during the quarter or
to report on its progress toward these targets. Plantronics will not
comment on these targets to analysts or investors except by its next press
release announcing its fourth quarter fiscal year 2009 results or by other
public disclosure. Any statements by persons outside Plantronics
speculating on the progress of the fourth quarter fiscal year 2009 will not
be based on internal company information and should be assessed accordingly
by investors.

Conference Call Scheduled to Discuss Actual Financial Results

Plantronics has scheduled a conference call to discuss third quarter
results. The conference call will take place Tuesday, January 27 at 2:00
PM (PST). All interested investors and potential investors in Plantronics
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 #60282103 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.

Use of Non-GAAP Financial Information

Plantronics excludes non-recurring transactions and non-cash expenses and
charges such as restructuring and other related charges, certain tax
credits and the release of certain tax reserves, stock-based compensation
expenses related to stock options, awards and employee stock purchases,
purchase accounting amortization and goodwill and long-lived asset
impairment charges from non-GAAP net income, non-GAAP earnings per diluted
share, non-GAAP operating income, non-GAAP operating margin and non-GAAP
effective tax rate. Plantronics excludes these expenses from its non-GAAP
measures primarily because Plantronics does not believe they are reflective
of ongoing operating results and are not part of its target operating
model. Plantronics believes that the use of non-GAAP financial measures
provides meaningful supplemental information regarding its performance and
liquidity, and helps investors compare actual results to its long-term
target operating model goals. Plantronics believes that both management and
investors benefit from referring to these non-GAAP financial measures in
assessing its performance and when planning, forecasting and analyzing
future periods.

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, including
statements relating to (i) our restructuring plan, (ii) our expectation
that we will incur approximately $7.7 to $8.2 million in related
restructuring charges and the timing of such charges, (iii) our
expectation that we will realize annualized savings from cost reductions of
over $50 million, (iv) our expectations regarding our capital
expenditures, (v) our objective to maintain our profitability, be cash flow
positive and increase our competitive position, (vi) our ability to
continue to focus on certain strategic initiatives, (vii) further actions
we may take to improve profitability, (viii) the future of Unified
Communications technologies, including their implementation, growth in
deployments and the effect on headset adoption, (ix) our position in the
Unified Communications market, (x) our estimate of revenue for the fourth
quarter of fiscal 2009, and (xi) our estimate of GAAP and Non-GAAP
financial results for the fourth quarter of fiscal 2009 and related
components of earnings per share, as well as other matters discussed in
this press release that are not purely historical data. Plantronics does
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:

-- All aspects of our business are difficult to predict, particularly in
light of the current economic conditions in both the domestic and
international markets;
-- We do not know how the market for each of our product groups will
continue to be negatively affected as a result of the recession in the
United States or global economy;
-- Fluctuations in foreign exchange rates;
-- The bankruptcy of additional distributors or key customers or the
bankruptcy of or reduction in capacity of our key suppliers;
-- Additional actions we take may affect GAAP results;
-- Failure to match production to demand given long lead times and the
difficulty of forecasting unit volumes and acquiring the component parts to
meet demand without having excess inventory or incurring cancellation
charges;
-- We have significant intangible assets and goodwill recorded on our
balance sheet. If the carrying value of our intangible assets and goodwill
is not recoverable, additional impairment losses must be recognized which
would adversely affect our financial results;
-- We have experienced volatility in prices from our suppliers, including
our manufacturers located in China, and in light of the uncertainties of
the economy in the United States and around the world, which could
negatively affect profitability and/or market share; and
-- Additional risk factors include: 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 or in China.


For more information concerning these and other possible risks, please
refer to the Company's Annual Report on Form 10-K filed May 27, 2008,
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

-- Unaudited GAAP to Non-GAAP Statements of Operations Reconciliations for
the three
and nine months ended December 31, 2008 and
December 31, 2007

--Summary
Unaudited Statements of Operations and Related Data on a Non-GAAP Basis

About Plantronics

In 1969, a Plantronics headset carried the historic third words from the
moon: "That's one small step for man, one giant leap for mankind." Since
then, Plantronics has 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.

Altec Lansing, Clarity, Plantronics, Sound Innovation, Volume Logic and
AudioIQ are trademarks or registered trademarks of Plantronics, Inc. All
other trademarks are the property of their respective owners.

PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share data and percentages)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
December 31, December 31,
------------------ -------------------
2007 2008 2007 2008
-------- -------- -------- ---------

Net revenues $232,824 $182,836 $647,543 $ 618,856
Cost of revenues 139,067 121,971 385,784 373,339
-------- -------- -------- ---------
Gross profit 93,757 60,865 261,759 245,517
Gross profit % 40.3% 33.3% 40.4% 39.7%

Research, development and
engineering 19,308 18,664 58,004 57,209
Selling, general and
administrative 48,424 43,202 140,476 139,345
Restructuring and other related
charges 2,882 1,048 2,882 1,283
Impairment of goodwill and
long-lived assets - 117,464 - 117,464
-------- -------- -------- ---------
Total operating expenses 70,614 180,378 201,362 315,301
-------- -------- -------- ---------
Operating income (loss) 23,143 (119,513) 60,397 (69,784)
Operating income (loss) % 9.9% (65.4%) 9.3% (11.3%)

Interest and other income
(expense), net 2,184 (1,499) 5,311 (3,129)
-------- -------- -------- ---------
Income (loss) before income taxes 25,327 (121,012) 65,708 (72,913)
Income tax expense (benefit) 6,219 (29,003) 15,103 (19,046)
-------- -------- -------- ---------
Net income (loss) $ 19,108 $(92,009) $ 50,605 $ (53,867)
======== ======== ======== =========

% of net revenues 8.2% (50.3%) 7.8% (8.7%)

Basic earnings (loss) per common
share $ 0.39 $ (1.90) $ 1.05 $ (1.11)
Diluted earnings (loss) per common
share $ 0.39 $ (1.90) $ 1.03 $ (1.11)

Shares used in basic per share
calculations 48,379 48,449 48,110 48,641
Shares used in diluted per share
calculations 49,533 48,449 49,148 48,641

Tax rate 24.6% 24.0% 23.0% 26.1%

UNAUDITED CONSOLIDATED BALANCE SHEETS
March December
31, 31,
2008 2008
-------- --------
ASSETS
Cash and cash equivalents $163,091 $153,452
Short-term investments - 29,965
-------- --------
Total cash, cash equivalents,
and short-term investments 163,091 183,417
Accounts receivable, net 131,493 106,463
Inventory 127,088 137,563
Deferred income taxes 13,760 12,472
Other current assets 14,771 28,385
-------- --------
Total current assets 450,203 468,300
Long-term investments 25,136 24,016
Property, plant and equipment,
net 98,530 98,440
Intangibles, net 91,511 27,192
Goodwill 69,171 13,996
Other assets 6,842 9,516
-------- --------
$741,393 $641,460
======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable $ 47,896 $ 32,157
Accrued liabilities 67,318 56,284
Total current liabilities 115,214 88,441
Deferred tax liability 32,570 5,611
Long-term income taxes payable 14,137 11,925
Other long-term liabilities 852 885
-------- --------
Total liabilities 162,773 106,862
Stockholders' equity 578,620 534,598
-------- --------
$741,393 $641,460
======== ========

AUDIO COMMUNICATIONS GROUP
SUMMARY CONDENSED FINANCIAL STATEMENTS
(in thousands)

UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
December 31, December 31,
------------------- -------------------
2007 2008 2007 2008
-------- --------- -------- ---------

Net revenues $195,955 $ 152,616 $562,574 $ 546,492
Cost of revenues 106,257 92,199 302,216 304,159
-------- --------- -------- ---------
Gross profit 89,698 60,417 260,358 242,333
Gross profit % 45.8% 39.6% 46.3% 44.3%

Research, development and
engineering 16,544 16,645 49,522 50,721
Selling, general and
administrative 42,103 38,579 121,129 123,887
Restructuring and other related
charges - 288 - 288
Impairment of goodwill and
long-lived assets - - - -
-------- --------- -------- ---------
Total operating expenses 58,647 55,512 170,651 174,896
-------- --------- -------- ---------
Operating income $ 31,051 $ 4,905 $ 89,707 $ 67,437
Operating income % 15.8% 3.2% 15.9% 12.3%

AUDIO ENTERTAINMENT GROUP
SUMMARY CONDENSED FINANCIAL STATEMENTS
(in thousands)

UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
December 31, December 31,
------------------- -------------------
2007 2008 2007 2008
-------- --------- -------- ---------

Net revenues $ 36,869 $ 30,220 $ 84,969 $ 72,364
Cost of revenues 32,810 29,772 83,568 69,180
-------- --------- -------- ---------
Gross profit 4,059 448 1,401 3,184
Gross profit % 11.0% 1.5% 1.6% 4.4%

Research, development and
engineering 2,764 2,019 8,482 6,488
Selling, general and
administrative 6,321 4,623 19,347 15,458
Restructuring and other related
charges 2,882 760 2,882 995
Impairment of goodwill and
long-lived assets - 117,464 - 117,464
-------- --------- -------- ---------
Total operating expenses 11,967 124,866 30,711 140,405
-------- --------- -------- ---------
Operating loss $ (7,908) $(124,418) $(29,310) $(137,221)
Operating loss % (21.4%) (411.7%) (34.5%) (189.6%)

PLANTRONICS, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data and percentages)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
December 31, 2008 December 31, 2008
------------------------------ ------------------------------
GAAP Excluded Non-GAAP GAAP Excluded Non-GAAP
-------- -------- -------- -------- -------- --------

Net
revenues $182,836 $ - $182,836 $618,856 $ - $618,856
Cost of
revenues 121,971 (1,390)(1) 120,581 373,339 (5,004)(1) 368,335
-------- -------- -------- -------- -------- --------
Gross
profit 60,865 1,390 62,255 245,517 5,004 250,521
Gross
profit % 33.3% 34.0% 39.7% 40.5%

Research,
development
and
engineering 18,664 (854)(1) 17,810 57,209 (2,928)(1) 54,281
Selling,
general
and
admini-
strative 43,202 (2,931)(1) 40,271 139,345 (9,761)(1) 129,584
Restructuring
and
other
related
charges 1,048 (1,048)(2) - 1,283 (1,283)(2) -
Impairment
of
goodwill
and
long-lived
assets 117,464 (117,464)(3) - 117,464 (117,464)(3) -
-------- -------- -------- -------- -------- --------
Total
operating
expenses 180,378 (122,297) 58,081 315,301 (131,436) 183,865
-------- -------- -------- -------- -------- --------
Operating
income
(loss) (119,513) 123,687 4,174 (69,784) 136,440 66,656
Operating
income
(loss) % (65.4%) 2.3% (11.3%) 10.8%
Interest
and other
income
(expense),
net (1,499) - (1,499) (3,129) - (3,129)
-------- -------- -------- -------- -------- --------
Income
(loss)
before
income
taxes (121,012) 123,687 2,675 (72,913) 136,440 63,527
Income tax
expense
(benefit) (29,003) 27,665(4) (1,338) (19,046) 33,739(5) 14,693
-------- -------- -------- -------- -------- --------
Net
income
(loss) $(92,009) $ 96,022 $ 4,013 $(53,867) $102,701 $ 48,834
======== ======== ======== ======== ======== ========

% of net
revenues (50.3%) 2.2% (8.7%) 7.9%

Diluted
earnings
(loss) per
common
share $ (1.90) $ 1.98 $ 0.08 $ (1.11) $ 2.11 $ 1.00
Shares used
in diluted
per share
calculations 48,449 48,449 48,449 48,641 48,641 48,641

AUDIO COMMUNICATIONS GROUP
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands)


UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
December 31, 2008 December 31, 2008
----------------------------- -----------------------------
GAAP Excluded Non-GAAP GAAP Excluded Non-GAAP
-------- ------- -------- -------- ------- --------


Net revenues $152,616 $ - $152,616 $546,492 $ - $546,492
Cost of
revenues 92,199 (758)(1) 91,441 304,159 (2,549)(1) 301,610
-------- ------- -------- -------- ------- --------
Gross profit 60,417 758 61,175 242,333 2,549 244,882
Gross profit% 39.6% 40.1% 44.3% 44.8%

Research,
development
and
engineering 16,645 (821)(1) 15,824 50,721 (2,815)(1) 47,906
Selling,
general and
administrative 38,579 (2,224)(1) 36,355 123,887 (7,389)(1) 116,498
Restructuring
and other
related
charges 288 (288)(2) - 288 (288)(2) -
-------- ------- -------- -------- ------- --------
Total
operating
expenses 55,512 (3,333) 52,179 174,896 (10,492) 164,404
-------- ------- -------- -------- ------- --------
Operating
income $ 4,905 $ 4,091 $ 8,996 $ 67,437 $13,041 $ 80,478
Operating
income % 3.2% 5.9% 12.3% 14.7%

AUDIO ENTERTAINMENT GROUP
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands)

UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended
December 31, 2008
---------------------------------
GAAP Excluded Non-GAAP
---------- --------- --------

Net revenues $ 30,220 $ - $ 30,220
Cost of revenues 29,772 (632)(1) 29,140
---------- --------- --------
Gross profit 448 632 1,080
Gross profit % 1.5% 3.6%

Research, development and engineering 2,019 (33)(1) 1,986
Selling, general and administrative 4,623 (707)(1) 3,916
Restructuring and other related charges 760 (760)(2) -
Impairment of goodwill and long-lived
assets 117,464 (117,464)(3) -
---------- --------- --------
Total operating expenses 124,866 (118,964) 5,902
---------- --------- --------
Operating loss $ (124,418) $ 119,596 $ (4,822)
Operating loss % (411.7%) (16.0%)

UNAUDITED STATEMENTS OF OPERATIONS
Nine Months Ended
December 31, 2008
----------------------------------
GAAP Excluded Non-GAAP
---------- --------- ---------

Net revenues $ 72,364 $ - $ 72,364
Cost of revenues 69,180 (2,455)(1) 66,725
---------- --------- ---------
Gross profit 3,184 2,455 5,639
Gross profit % 4.4% 7.8%

Research, development and engineering 6,488 (113)(1) 6,375
Selling, general and administrative 15,458 (2,372)(1) 13,086
Restructuring and other related charges 995 (995)(2) -
Impairment of goodwill and long-lived
assets 117,464 (117,464)(3) -
--------- --------- ---------
Total operating expenses 140,405 (120,944) 19,461
--------- --------- ---------
Operating loss $ (137,221) $ 123,399 $ (13,822)
Operating loss % (189.6%) (19.1%)

(1) Excluded amount represents stock-based compensation and purchase
accounting amortization.
(2) Excluded amount represents restructuring and other related charges.
(3) Excluded amount represents impairment of goodwill and long-lived
assets.
(4) Excluded amount represents tax benefit from stock-based compensation,
purchase accounting amortization, restructuring and other related
charges, impairment of goodwill and long-lived assets and $2,078
related to a tax benefit from expiration of certain statutes of
limitations.
(5) Excluded amount represents tax benefit from stock-based compensation,
purchase accounting amortization, restructuring and other related
charges, impairment of goodwill and long-lived assets and $3,813
related to a tax benefit from expiration of certain statutes of
limitations.

Use of Non-GAAP Financial Information

To supplement our consolidated financial statements presented on a GAAP
basis, Plantronics uses non-GAAP measures of operating results, which are
adjusted to exclude non-recurring and non-cash expenses and charges, such
as restructuring and other related charges, certain tax credits and the
release of certain tax reserves, stock-based compensation expenses related
to stock options, awards and employee stock purchases under FAS 123R,
purchase accounting amortization and goodwill and long-lived assets.
Plantronics does not believe these expenses and charges are reflective of
ongoing operating results and are not part of our target operating model.
At the segment level, we have presented non-GAAP statements that only show
our results to the operating income line. On a consolidated basis, we have
presented full non-GAAP statement of operations. The non-GAAP financial
measures should not be considered a substitute for, or superior to,
financial measures calculated in accordance with GAAP, and the financial
results calculated in accordance with GAAP and the reconciliations to those
financial statements should be carefully evaluated. The non-GAAP financial
measures used by the Company may be calculated differently from, and
therefore may not be comparable to, similarly titled measures used by other
companies.

PLANTRONICS, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data and percentages)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
December 31, 2007 December 31, 2007
----------------------------- -----------------------------
GAAP Excluded Non-GAAP GAAP Excluded Non-GAAP
-------- ------- -------- -------- ------- --------

Net revenues $232,824 $ - $232,824 $647,543 $ - $647,543
Cost of
revenues 139,067 (1,776)(1) 137,291 385,784 (5,948)(2) 379,836
-------- ------- -------- -------- ------- --------
Gross profit 93,757 1,776 95,533 261,759 5,948 267,707
Gross
profit % 40.3% 41.0% 40.4% 41.3%

Research,
development
and
engineering 19,308 (909)(1) 18,399 58,004 (2,794)(1) 55,210
Selling,
general and
admini-
strative 48,424 (3,405)(1) 45,019 140,476 (9,813)(1) 130,663
Restructuring
and
other
related
charges 2,882 (2,882)(3) - 2,882 (2,882)(3) -
-------- ------- -------- -------- ------- --------
Total
operating
expenses 70,614 (7,196) 63,418 201,362 (15,489) 185,873
-------- ------- -------- -------- ------- --------
Operating
income 23,143 8,972 32,115 60,397 21,437 81,834
Operating
income % 9.9% 13.8% 9.3% 12.6%

Interest and
other
income, net 2,184 - 2,184 5,311 - 5,311
-------- ------- -------- -------- ------- --------
Income
before
income
taxes 25,327 8,972 34,299 65,708 21,437 87,145

Income tax
expense 6,219 1,953(4) 8,172 15,103 6,324(5) 21,427
-------- ------- -------- -------- ------- --------
Net income $ 19,108 $ 7,019 $ 26,127 $ 50,605 $15,113 $ 65,718
======== ======= ======== ======== ======= ========

% of net
revenues 8.2% 11.2% 7.8% 10.1%

Diluted
earnings
per common
share $ 0.39 $ 0.14 $ 0.53 $ 1.03 $ 0.31 $ 1.34
Shares used
in diluted
per share
calculations 49,533 49,533 49,533 49,148 49,148 49,148

AUDIO COMMUNICATIONS GROUP
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands)

UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
December 31, 2007 December 31, 2007
----------------------------- -----------------------------
GAAP Excluded Non-GAAP GAAP Excluded Non-GAAP
-------- ------- -------- -------- ------- --------

Net revenues $195,955 $ - $195,955 $562,574 $ - $562,574
Cost of
revenues 106,257 (871)(1) 105,386 302,216 (2,402)(1) 299,814
-------- ------- -------- -------- ------- --------
Gross profit 89,698 871 90,569 260,358 2,402 262,760
Gross
profit % 45.8% 46.2% 46.3% 46.7%

Research,
development
and
engineering 16,544 (874)(1) 15,670 49,522 (2,693)(1) 46,829

Selling,
general and
admini-
strative 42,103 (2,613)(1) 39,490 121,129 (7,178)(1) 113,951
-------- ------- -------- -------- ------- --------
Total
operating
expenses 58,647 (3,487) 55,160 170,651 (9,871) 160,780
-------- ------- -------- -------- ------- --------
Operating
income $ 31,051 $ 4,358 $ 35,409 $ 89,707 $12,273 $101,980
Operating
income % 15.8% 18.1% 15.9% 18.1%

AUDIO ENTERTAINMENT GROUP
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands)

UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
December 31, 2007 December 31, 2007
----------------------------- -----------------------------
GAAP Excluded Non-GAAP GAAP Excluded Non-GAAP
-------- ------- -------- -------- ------- --------

Net
revenues $ 36,869 $ - $ 36,869 $ 84,969 $ - $ 84,969
Cost of
revenues 32,810 (905)(1) 31,905 83,568 (3,546)(2) 80,022
-------- ------- -------- -------- ------- --------
Gross profit
(loss) 4,059 905 4,964 1,401 3,546 4,947
Gross
profit
(loss) % 11.0% 13.5% 1.6% 5.8%

Research,
development
and
engineering 2,764 (35)(1) 2,729 8,482 (101)(1) 8,381
Selling,
general and
admini-
strative 6,321 (792)(1) 5,529 19,347 (2,635)(1) 16,712
Restructuring
and
other
related
charges 2,882 (2,882)(3) - 2,882 (2,882)(3) -
-------- ------- -------- -------- ------- --------
Total
operating
expenses 11,967 (3,709) 8,258 30,711 (5,618) 25,093
-------- ------- -------- -------- ------- --------
Operating
loss $ (7,908) $ 4,614 $ (3,294) $(29,310) $ 9,164 $(20,146)
Operating
loss % (21.4%) (8.9%) (34.5%) (23.7%)

(1) Excluded amount represents stock-based compensation and purchase
accounting amortization.
(2) Excluded amount represents stock-based compensation, purchase
accounting amortization and $517 related to the impairment of a
long-lived asset.
(3) Excluded amount represents restructuring and other related charges.
(4) Excluded amount represents tax benefit from stock-based compensation,
purchase accounting amortization and restructuring and other related
charges.
(5) Excluded amount represents tax benefit from stock-based compensation,
purchase accounting amortization, restructuring and other related
charges and impairment of a long-lived asset.

Use of Non-GAAP Financial Information

To supplement our consolidated financial statements presented on a GAAP
basis, Plantronics uses non-GAAP measures of operating results, which are
adjusted to exclude non-recurring and non-cash expenses and charges, such
as restructuring and other related charges, certain tax credits and the
release of certain tax reservces, stock-based compensation expenses related
to stock options, awards and employee stock purchases under FAS 123R,
purchase accounting amortization and goodwill and long-lived assets.
Plantronics does not believe these expenses and charges are reflective of
ongoing operating results and are not part of our target operating model.
At the segment level, we have presented non-GAAP statements that only show
our results to the operating income line. On a consolidated basis, we have
presented full non-GAAP statement of operations. The non-GAAP financial
measures should not be considered a substitute for, or superior to,
financial measures calculated in accordance with GAAP, and the financial
results calculated in accordance with GAAP and the reconciliations to those
financial statements should be carefully evaluated. The non-GAAP financial
measures used by the Company may be calculated differently from, and
therefore may not be comparable to, similarly titled measures used by other
companies.

Summary of Unaudited Statements of Operations and Related Data (1)

Q108 Q208 Q308 Q408
Net revenues $ 206,495 $ 208,224 $ 232,824 $ 208,743
Cost of revenues 121,107 121,438 137,291 119,618
Gross profit 85,388 86,786 95,533 89,125
Gross profit % 41.4% 41.7% 41.0% 42.7%

Research, development and
engineering 18,509 18,302 18,399 18,016
Selling, general and
administrative 42,776 42,868 45,019 45,368
Operating expenses 61,285 61,170 63,418 63,384

Operating income 24,103 25,616 32,115 25,741
Operating income % 11.7% 12.3% 13.8% 12.3%

Income before income taxes 25,437 27,409 34,299 26,284
Income tax expense (benefit) 6,391 6,864 8,172 3,862
Income tax expense (benefit) as
a percent of income before
taxes 25.1% 25.0% 23.8% 14.7%

Net income $ 19,046 $ 20,545 $ 26,127 $ 22,422
Diluted shares outstanding 48,681 49,310 49,533 48,994
Diluted EPS $ 0.39 $ 0.42 $ 0.53 $ 0.46

Net revenues from unaffiliated
customers:
Audio Communication Group
Office and Contact Center $ 132,205 $ 131,357 $ 131,017 $ 125,379
Mobile 41,238 35,859 48,788 45,995
Gaming and Computer Audio 6,485 8,277 10,449 8,401
Other 5,644 5,554 5,701 5,586
Audio Entertainment Group 20,923 27,177 36,869 23,382

Net revenues by geographic area
from unaffiliated customers:
Domestic $ 131,108 $ 126,399 $ 139,106 $ 124,535
International 75,387 81,825 93,718 84,208

Balance Sheet accounts and
metrics:
Accounts receivable, net $ 121,705 $ 128,705 $ 136,550 $ 131,493
Days sales outstanding 53 56 53 57
Inventory, net $ 136,253 $ 133,516 $ 131,320 $ 127,088
Inventory turns 3.6 3.6 4.2 3.8

FY08 Q109 Q209 Q309
Net revenues $ 856,286 $ 219,164 $ 216,856 $ 182,836
Cost of revenues 499,454 126,464 121,290 120,581
Gross profit 356,832 92,700 95,566 62,255
Gross profit % 41.7% 42.3% 44.1% 34.0%

Research, development and
engineering 73,226 18,660 17,811 17,810
Selling, general and
administrative 176,031 44,980 44,333 40,271
Operating expenses 249,257 63,640 62,144 58,081

Operating income 107,575 29,060 33,422 4,174
Operating income % 12.6% 13.3% 15.4% 2.3%

Income before income taxes 113,429 30,600 30,252 2,675
Income tax expense (benefit) 25,289 7,339 8,692 (1,338)
Income tax expense (benefit) as
a percent of income before
taxes 22.3% 24.0% 28.7% (50.0%)

Net income $ 88,140 $ 23,261 $ 21,560 $ 4,013
Diluted shares outstanding 49,090 49,245 49,489 48,449
Diluted EPS $ 1.80 $ 0.47 $ 0.44 $ 0.08

Net revenues from unaffiliated
customers:
Audio Communication Group
Office and Contact Center $ 519,958 $ 122,803 $ 119,530 $ 101,694
Mobile 171,880 59,882 60,911 36,011
Gaming and Computer Audio 33,612 9,621 8,977 8,531
Other 22,485 6,221 5,931 6,380
Audio Entertainment Group 108,351 20,637 21,507 30,220

Net revenues by geographic area
from unaffiliated customers:
Domestic $ 521,148 $ 134,402 $ 139,856 $ 107,799
International 335,138 84,762 77,000 75,037

Balance Sheet accounts and
metrics:
Accounts receivable, net $ 131,493 $ 130,530 $ 115,032 $ 106,463
Days sales outstanding 54 48 52
Inventory, net $ 127,088 $ 136,974 $ 163,433 $ 137,563
Inventory turns 3.7 3.0 3.5

(1) Non-GAAP.

FOR INFORMATION, CONTACT:
Greg Klaben
Vice President of Investor Relations
(831) 458-7533

Copyright ? 2009 Marketwire

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