PLANTRONICS INC /CA/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - PLANTRONICS INC /CA/	a8kearningsreleaseq415.htm

PRESS RELEASE



INVESTOR CONTACT: Greg Klaben Vice President of Investor Relations (831) 458-7533	MEDIA CONTACT: George Gutierrez Vice President of Global Communications (831) 458-7537

Plantronics Announces Fourth Quarter & Fiscal Year 2015 Financial Results

SANTA CRUZ, CA - April 27, 2015 - Plantronics, Inc. (NYSE: PLT) today announced fourth quarter fiscal year 2015 results. Highlights of the fourth quarter include the following (comparisons are against the fourth quarter of fiscal year 2014):


•	Net revenues were $200.8 million compared with $209.1 million


•	GAAP gross margin was 54.4% compared with 53.1%


◦	Non-GAAP gross margin was 54.7% compared with 53.5%


•	GAAP operating income was $32.9 million compared with $35.5 million


◦	Non-GAAP operating income was $40.4 million compared with $41.7 million


•	GAAP diluted earnings per share (“EPS”) was $0.61 compared with $0.65


◦	Non-GAAP diluted EPS was $0.72 compared with $0.74

Q4 Fiscal Year 2015 GAAP Results



	Q4 2015				Q4 2014				Change (%)
Net revenues	$	200.8		million	$	209.1		million	(4.0	)%
Operating income	$	32.9		million	$	35.5		million	(7.3	)%
Operating margin	16.4		%		17.0		%
Diluted EPS	$	0.61			$	0.65			(6.2	)%

Q4 Fiscal Year 2015 Non-GAAP Results



	Q4 2015				Q4 2014				Change (%)
Operating income	$	40.4		million	$	41.7		million	(3.1	)%
Operating margin	20.1		%		20.0		%
Diluted EPS	$	0.72			$	0.74			(2.7	)%

Fiscal Year 2015 GAAP Results



	2015			2014				Change (%)
Net revenues	865.0		million	$	818.6		million	5.7	%
Operating income	149.1		million	$	140.1		million	6.4	%
Operating margin	17.2	%		17.1		%
Diluted EPS	2.63			$	2.59			1.5	%

Fiscal Year 2015 Non-GAAP Results



	2015				2014				Change (%)
Operating income	$	177.9		million	$	166.1		million	7.1	%
Operating margin	20.6		%		20.3		%
Diluted EPS	$	3.04			$	2.85			6.7	%

A reconciliation between our GAAP and non-GAAP results is provided in the tables at the end of this press release.

“Our fourth quarter revenue results disappointed due primarily to currency headwinds, a decline in the consumer mono Bluetooth market, and a delayed new product introduction,” stated Ken Kannappan, President & CEO. “On an annual basis, we achieved solid revenue growth with even better profitability growth. We continue to execute well on our strategy and are maintaining product leadership and innovation in all of our major product categories. We continue to believe in the fundamentals of the Company and that our market position remains strong.”

“Our hedging program, along with a lower quarterly share count and lower tax rate mitigated the currency impact to the quarter,” said Pam Strayer, Senior Vice President and Chief Financial Officer. “We generated approximately $54 million in cash flow from operations in the fourth quarter of fiscal year 2015 and approximately $154 million for the full fiscal year. We drew $34.5 million on our line of credit to partially fund the purchase of 1.6 million shares of our common stock for $85 million during the quarter. We grew our cash, cash equivalents and short and long term investments position to approximately $482 million.

Enterprise net revenues decreased 1% to $148.7 million in the fourth quarter of fiscal year 2015 compared with $150.5 million in the fourth quarter of fiscal year 2014 driven by a decline in Core enterprise revenue and unfavorable currency rates. Net revenues from UC products, a subset of Enterprise, grew by 5% to $45.8 million in the fourth quarter of fiscal year 2015 compared with $43.6 million in the fourth quarter of fiscal year 2014.

Consumer net revenues were $52.1 million in the fourth quarter of fiscal year 2015, down from $58.6 million in the fourth quarter of fiscal year 2014, due to several factors, including a decline in the mono Bluetooth market and the bankruptcy of a large U.S. retailer.

Dividend Announcement

We are also announcing that we have declared a quarterly dividend of $0.15 per common share, to be paid on June 10, 2015 to all shareholders of record as of the close of business on May 20, 2015.

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 fulfill the majority of orders received within 48 hours of receipt of those orders. However, our backlog is occasionally subject to cancellation or rescheduling by our customers on short notice with little or no penalty. Therefore, there is a lack of meaningful correlation between backlog at the end of a fiscal period and net revenues in a succeeding fiscal period.

Our business is inherently difficult to forecast, particularly with continuing uncertainty in regional economic conditions and currency fluctuations, 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 first quarter of fiscal year 2016:


•	Net revenues of $202 million to $212 million;


•	GAAP operating income of $26 million to $31 million;


•	Non-GAAP operating income of $34 million to $39 million, excluding the impact of $8 million from stock-based compensation and purchase accounting amortization from GAAP operating income;


•	Assuming approximately 40 million diluted average weighted shares outstanding:


•	GAAP diluted EPS of $0.48 to $0.57;


•	Non-GAAP diluted EPS of $0.62 to $0.71; and


•	Cost of stock-based compensation and purchase accounting amortization to be approximately $0.14 per diluted share.

Please see our updated 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 fourth quarter fiscal year 2015 results. The conference call will take place today, April 27, 2015, at 6:00 AM (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 #13097180 will be available until May 27, 2015 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 one month.

A reconciliation between our GAAP and non-GAAP results is provided in the tables at the end of this press release.

Use of Non-GAAP Financial Information

To supplement our condensed consolidated financial statements presented on a GAAP basis, we use non-GAAP measures of operating results, which are adjusted to exclude certain non-cash expenses and charges from non-GAAP operating income, non-GAAP operating margin and non-GAAP diluted EPS, including stock-based compensation related to stock options, restricted stock and employee stock purchases made under our employee stock purchase plan, purchase accounting amortization, accelerated depreciation, and early lease termination charges, all net of the associated tax impact, tax benefits from the release of tax reserves, transfer pricing, tax deduction and tax credit adjustments, and the impact of tax law changes. We exclude these expenses from our non-GAAP measures primarily because Plantronics’ management does not believe they are 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 with 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, 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 belief in our fundamentals and market positions; (ii) our estimates of GAAP and non-GAAP financial results for the first quarter of fiscal year 2016, including net revenues, operating income and diluted EPS; (iv) our estimates of stock-based compensation and purchase accounting amortization and other related charges, as well as the impact of these non-cash expenses on Non-GAAP operating income and diluted EPS for the first quarter of fiscal year 2016; and (v) our estimate of weighted average shares outstanding for the first quarter of fiscal year 2016, 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 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 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.

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 16, 2014, and other filings with the Securities and Exchange Commission, as well as our recent press releases. The Securities and Exchange Commission 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. / 345 Encinal Street / P.O. Box 1802 / Santa Cruz, California 95061-1802

831-426-6060 / Fax 831-426-6098



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

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended						Twelve Months Ended
	March 31,						March 31,
	2015			2014			2015			2014
Net revenues	$	200,762		$	209,070		$	865,010		$	818,607
Cost of revenues	91,596			98,015			403,391			391,979
Gross profit	109,166			111,055			461,619			426,628
Gross profit %	54.4		%	53.1		%	53.4		%	52.1		%

Research, development and engineering	22,347			22,453			91,627			84,781
Selling, general and administrative	54,813			53,105			229,569			201,176
Gain from litigation settlements	(846		)	—			(8,662		)	—
Restructuring and other related charges				—			—			547
Total operating expenses	76,314			75,558			312,534			286,504
Operating income	32,852			35,497			149,085			140,124
Operating income %	16.4		%	17.0		%	17.2		%	17.1		%

Interest and other income (expense), net	(2,151		)	956			(3,834		)	1,015
Income before income taxes	30,701			36,453			145,251			141,139
Income tax expense	4,877			8,510			32,950			28,722
Net income	$	25,824		$	27,943		$	112,301		$	112,417

% of net revenues	12.9		%	13.4		%	13.0		%	13.7		%

Earnings per common share:
Basic	$	0.62		$	0.67		$	2.69		$	2.65
Diluted	$	0.61		$	0.65		$	2.63		$	2.59

Shares used in computing earnings per common share:
Basic	41,606			41,866			41,723			42,452
Diluted	42,482			42,697			42,643			43,364

Effective tax rate	15.9		%	23.3		%	22.7		%	20.4		%



PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
($ in thousands)

UNAUDITED CONSOLIDATED BALANCE SHEETS
	March 31,		March 31,
	2015		2014
ASSETS
Cash and cash equivalents	$	276,850	$	232,704
Short-term investments	97,859		102,717
Total cash, cash equivalents and short-term investments	374,709		335,421
Accounts receivable, net	136,581		138,301
Inventory, net	56,676		57,132
Deferred tax assets	6,564		11,776
Other current assets	28,124		13,657
Total current assets	602,654		556,287
Long-term investments	107,590		100,342
Property, plant and equipment, net	139,413		134,402
Goodwill and purchased intangibles, net	16,077		16,165
Other assets	10,308		4,619
Total assets	$	876,042	$	811,815
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	32,781	$	30,756
Accrued liabilities	62,041		66,851
Total current liabilities	94,822		97,607
Long-term income taxes payable	12,984		12,719
Revolving line of credit	34,500		—
Other long-term liabilities	6,339		2,825
Total liabilities	148,645		113,151
Stockholders' equity	727,397		698,664
Total liabilities and stockholders' equity	$	876,042	$	811,815



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

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended						Twelve Months Ended
	March 31,						March 31,
	2015			2014			2015			2014
Cash flows from operating activities
Net Income	$	25,824		$	27,943		$	112,301		$	112,417
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,736			3,895			18,711			15,566
Stock-based compensation	7,472			6,184			28,594			23,180
Excess tax benefit from stock-based compensation	(532		)	(225		)	(3,520		)	(4,659		)
Deferred income taxes	(2,634		)	(6,343		)	(980		)	(5,813		)
Provision for excess and obsolete inventories	(61		)	(281		)	931			4,138
Other operating activities	(1,672		)	638			(1,188		)	1,983
Changes in assets and liabilities:
Accounts receivable, net	22,751			(4,597		)	4,272			(11,136		)
Inventory, net	1,048			9,175			128			6,040
Current and other assets	(688		)	529			(5,368		)	1,355
Accounts payable	(2,457		)	4,028			(62		)	(6,311		)
Accrued liabilities	(2,964		)	(1,806		)	500			(418		)
Income taxes	3,239			10,229			119			5,149
Cash provided by operating activities	54,062			49,369			154,438			141,491

Cash flows from investing activities
Proceeds from sale of investments	23,565			12,732			96,129			102,414
Proceeds from maturities of investments	18,255			42,745			120,430			137,955
Purchase of investments	(43,256		)	(65,519		)	(216,013		)	(247,355		)
Acquisitions, net of cash acquired	—			—			(150		)	—
Capital expenditures	(2,748		)	(13,328		)	(21,962		)	(50,985		)
Cash used for investing activities	(4,184		)	(23,370		)	(21,566		)	(57,971		)

Cash flows from financing activities
Repurchase of common stock	(85,496		)	(28,900		)	(112,939		)	(85,654		)
Employees' tax withheld and paid for restricted stock and restricted stock units	(305		)	(208		)	(7,611		)	(6,222		)
Proceeds from issuances under stock-based compensation plans	5,221			4,456			23,042			24,055
Proceeds from revolving line of credit	34,500			—			34,500			—
Repayments of revolving line of credit	—			—			—			—
Payment of cash dividends	(6,434		)	(4,267		)	(25,730		)	(17,372		)
Excess tax benefit from stock-based compensation	532			225			3,520			4,659
Cash used for financing activities	(51,982		)	(28,694		)	(85,218		)	(80,534		)

Effect of exchange rate changes on cash and cash equivalents	(1,396		)	(135		)	(3,508		)	942
Net increase (decrease) in cash and cash equivalents	(3,500		)	(2,830		)	44,146			3,928
Cash and cash equivalents at beginning of period	280,350			235,534			232,704			228,776
Cash and cash equivalents at end of period	$	276,850		$	232,704		$	276,850		$	232,704



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						Twelve Months Ended
	March 31,						March 31,
	2015			2014			2015			2014
GAAP Gross profit	$	109,166		$	111,055		$	461,619		$	426,628
Stock-based compensation	695			695			2,583			2,554
Accelerated depreciation	—			—			—			261
Lease termination charges	—			—			—			1,388
Non-GAAP Gross profit	$	109,861		$	111,750		$	464,202		$	430,831
Non-GAAP Gross profit %	54.7		%	53.5		%	53.7		%	52.6		%

GAAP Research, development and engineering	$	22,347		$	22,453		$	91,627		$	84,781
Stock-based compensation	(2,119		)	(1,696		)	(8,053		)	(6,404		)
Accelerated depreciation	—			—			—			(200		)
Lease termination charges	—			—			—			(21		)
Purchase accounting amortization	(63		)	(50		)	(238		)	(200		)
Non-GAAP Research, development and engineering	$	20,165		$	20,707		$	83,336		$	77,956

GAAP Selling, general and administrative	$	54,813		$	53,105		$	229,569		$	201,176
Stock-based compensation	(4,655		)	(3,794		)	(17,955		)	(14,222		)
Lease termination charges	—			—			—			(45		)
Purchase accounting amortization	—			—			—			(106		)
Non-GAAP Selling, general and administrative	$	50,158		$	49,311		$	211,614		$	186,803

GAAP Operating expenses	$	76,314		$	75,558		$	312,534		$	286,504
Stock-based compensation	(6,774		)	(5,490		)	(26,008		)	(20,626		)
Accelerated depreciation	—			—			—			(200		)
Lease termination charges	—			—			—			(66		)
Purchase accounting amortization	(63		)	(50		)	(238		)	(306		)
Restructuring and other related charges	—			—			—			(547		)
Non-GAAP Operating expenses	$	69,477		$	70,018		$	286,288		$	264,759



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										Twelve Months Ended
	March 31,										March 31,
	2015					2014					2015					2014
GAAP Operating income	$	32,852				$	35,497				$	149,085				$	140,124
Stock-based compensation	7,469					6,185					28,591					23,180
Accelerated depreciation	—					—					—					461
Lease termination charges	—					—					—					1,454
Purchase accounting amortization	63					50					238					306
Restructuring and other related charges	—					—					—					547
Non-GAAP Operating income	$	40,384				$	41,732				$	177,914				$	166,072

GAAP Net income	$	25,824				$	27,943				$	112,301				$	112,417
Stock-based compensation	7,469					6,185					28,591					23,180
Accelerated depreciation	—					—					—					461
Lease termination charges	—					—					—					1,454
Purchase accounting amortization	63					50					238					306
Restructuring and other related charges	—					—					—					547
Income tax effect of above items	(2,252		)			(1,738		)			(8,506		)			(7,498		)
Income tax effect of unusual tax items	(489		)	⁽¹	⁾	(650		)	⁽²	⁾	(2,864		)	⁽³	⁾	(7,432		)	⁽⁴	⁾
Non-GAAP Net income	$	30,615				$	31,790				$	129,760				$	123,435

GAAP Diluted earnings per common share	$	0.61				$	0.65				$	2.63				$	2.59
Stock-based compensation	0.17					0.14					0.67					0.53
Accelerated depreciation	—					—					—					0.01
Lease termination charges	—					—					—					0.03
Restructuring and other related charges	—					—					—					0.02
Income tax effect	(0.06		)			(0.05		)			(0.26		)			(0.33		)
Non-GAAP Diluted earnings per common share	$	0.72				$	0.74				$	3.04				$	2.85

Shares used in diluted earnings per common share calculation	42,482					42,697					42,643					43,364



⁽¹⁾	Excluded amount represents tax benefits from the release of tax reserves and tax credit adjustments.
⁽²⁾	Excluded amount represents tax benefits from release of tax reserves.
⁽³⁾	Excluded amount represents tax benefits from release of tax reserves, tax credit adjustments, and the impact of tax law changes.
⁽⁴⁾	Excluded amount represents tax benefits from release of tax reserves, transfer pricing, tax deduction and tax credit adjustments, and the impact of tax law changes.

Use of Non-GAAP Financial Information



Summary of Unaudited Reconciliations of GAAP Measures to Non-GAAP Measures and other Unaudited GAAP Data
($ in thousands, except per share data)
	Q114			Q214			Q314			Q414			Q115			Q215			Q315		Q415
GAAP Gross profit	$	105,632		$	99,614		$	110,327		$	111,055		$	114,710		$	117,827		119,916		109,166
Stock-based compensation	535			638			686			695			535			668			685		695
Accelerated depreciation	220			41			—			—			—			—			—		—
Lease termination charges	262			1,126			—			—			—			—			—		—
Non-GAAP Gross profit	$	106,649		$	101,419		$	111,013		$	111,750		$	115,245		$	118,495		120,601		109,861
Non-GAAP Gross profit %	52.6		%	52.3		%	52.2		%	53.5		%	53.2		%	54.9		%	52.0	%	54.7	%

GAAP Operating expenses	$	69,683		$	68,778		$	72,485		$	75,558		$	76,949		$	79,969		79,302		76,314
Stock-based compensation	(4,452		)	(5,327		)	(5,357		)	(5,490		)	(5,770		)	(6,719		)	(6,745	)	(6,774	)
Accelerated depreciation	(151		)	(49		)	—			—			—			—			—		—
Lease termination charges	—			(66		)	—			—			—			—			—		—
Purchase accounting amortization	(121		)	(85		)	(50		)	(50		)	(50		)	(61		)	(64	)	(63	)
Restructuring and other related charges	(723		)	176			—			—			—			—			—		—
Non-GAAP Operating expenses	$	64,236		$	63,427		$	67,078		$	70,018		$	71,129		$	73,189		72,493		69,477

GAAP Operating income	$	35,949		$	30,836		$	37,842		$	35,497		$	37,761		$	37,858		40,614		32,852
Stock-based compensation	4,987			5,965			6,043			6,185			6,305			7,387			7,430		7,469
Accelerated depreciation	371			90			—			—			—			—			—		—
Lease termination charges	262			1,192			—			—			—			—			—		—
Purchase accounting amortization	121			85			50			50			50			61			64		63
Restructuring and other related charges	723			(176		)	—			—			—			—			—		—
Non-GAAP Operating income	$	42,413		$	37,992		$	43,935		$	41,732		$	44,116		$	45,306		48,108		40,384
Non-GAAP Operating income %	20.9		%	19.6		%	20.7		%	20.0		%	20.4		%	21.0		%	20.8	%	20.1	%

GAAP Income before income taxes	$	35,463		$	31,195		$	38,028		$	36,453		$	38,781		$	37,173		38,596		30,701
Stock-based compensation	4,987			5,965			6,043			6,185			6,305			7,387			7,430		7,469
Accelerated depreciation	371			90			—			—			—			—			—		—
Lease termination charges	262			1,192			—			—			—			—			—		—
Purchase accounting amortization	121			85			50			50			50			61			64		63
Restructuring and other related charges	723			(176		)	—			—			—			—			—		—
Non-GAAP Income before income taxes	$	41,927		$	38,351		$	44,121		$	42,688		$	45,136		$	44,621		46,090		38,233

GAAP Income tax expense	$	8,510		$	8,057		$	3,645		$	8,510		$	10,109		$	9,752		8,212		4,877
Income tax effect of above items	1,889			2,072			1,799			1,738			1,800			2,250			2,204		2,252
Income tax effect of unusual tax items	935			226			5,621			650			273			74			2,028		489
Non-GAAP Income tax expense	$	11,334		$	10,355		$	11,065		$	10,898		$	12,182		$	12,076		12,444		7,618
Non-GAAP Income tax expense as a % of Non-GAAP Income before income taxes	27.0		%	27.0		%	25.1		%	25.5		%	27.0		%	27.1		%	27.0	%	19.9	%



Summary of Unaudited Reconciliations of GAAP Measures to Non-GAAP Measures and other Unaudited GAAP Data (Continued)
($ in thousands, except per share data)
	Q114			Q214			Q314			Q414			Q115			Q215			Q315			Q415
GAAP Net income	$	26,953		$	23,138		$	34,383		$	27,943		$	28,672		$	27,421		$	30,384		$	25,824
Stock-based compensation	4,987			5,965			6,043			6,185			6,305			7,387			7,430			7,469
Accelerated depreciation	371			90			—			—			—			—			—			—
Lease termination charges	262			1,192			—			—			—			—			—			—
Purchase accounting amortization	121			85			50			50			50			61			64			63
Restructuring and other related charges	723			(176		)	—			—			—			—			—			—
Income tax effect of above items	(1,889		)	(2,072		)	(1,799		)	(1,738		)	(1,800		)	(2,250		)	(2,204		)	(2,252		)
Income tax effect of unusual tax items	(935		)	(226		)	(5,621		)	(650		)	(273		)	(74		)	(2,028		)	(489		)
Non-GAAP Net income	$	30,593		$	27,996		$	33,056		$	31,790		$	32,954		$	32,545		$	33,646		$	30,615

GAAP Diluted earnings per common share	$	0.62		$	0.53		$	0.80		$	0.65		$	0.68		$	0.65		$	0.71		$	0.61
Stock-based compensation	0.11			0.14			0.14			0.14			0.15			0.17			0.18			0.17
Accelerated depreciation	0.01			—			—			—			—			—			—			—
Lease termination charges	0.01			0.02			—			—			—			—			—			—
Restructuring and other related charges	0.02			—			—			—			—			—			—			—
Income tax effect	(0.07		)	(0.05		)	(0.18		)	(0.05		)	(0.05		)	(0.05		)	(0.10		)	(0.06		)
Non-GAAP Diluted earnings per common share	$	0.70		$	0.64		$	0.76		$	0.74		$	0.78		$	0.77		$	0.79		$	0.72

Shares used in diluted earnings per common share calculation	43,650			43,597			43,228			42,697			42,466			42,505			42,700			42,482

SUMMARY OF UNAUDITED GAAP DATA
($ in thousands)
Net revenues from unaffiliated customers:
Enterprise	$	151,183		$	139,945		$	146,636		$	150,501		$	152,353		$	156,680		$	161,591		$	148,660
Consumer	51,635			54,035			66,103			58,569			64,309			59,125			70,190			52,102
Total net revenues	$	202,818		$	193,980		$	212,739		$	209,070		$	216,662		$	215,805		$	231,781		$	200,762
Net revenues by geographic area from unaffiliated customers:
Domestic	$	121,318		$	115,795		$	113,042		$	125,123		$	124,467		$	123,697		$	123,092		$	116,351
International	81,500			78,185			99,697			83,947			92,195			92,108			108,689			84,411
Total net revenues	$	202,818		$	193,980		$	212,739		$	209,070		$	216,662		$	215,805		$	231,781		$	200,762


Balance Sheet accounts and metrics:
Accounts receivable, net	$	120,903		$	123,748		$	133,379		$	138,301		$	150,765		$	140,427		$	157,322		$	136,581
Days sales outstanding (DSO)	54			57			56			60			63			59			61			61
Inventory, net	$	65,314		$	69,150		$	66,569		$	57,132		$	60,968		$	63,551		$	57,724		$	56,676
Inventory turns	6.0			5.5			6.2			6.9			6.7			6.2			7.8			6.5

PLANTRONICS INC /CA/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - April 27, 2015

Attached files

PLANTRONICS INC /CA/ Reports