SANTA CRUZ, Calif.,
May 27, 2020 /PRNewswire/ -- Plantronics, Inc. (NYSE:
PLT) ("Poly" or the "Company") today announced preliminary fourth
quarter and full fiscal year 2020 results for the period ending
March 28, 2020. Preliminary highlights of the fourth quarter
and full fiscal year include the following:
($ Millions, except
percent and per-share data)1
|
Q4
FY20
|
Q4
FY19
|
|
YTD
FY20
|
YTD
FY192
|
GAAP
Revenue
|
$403
|
|
$468
|
|
|
$1,697
|
|
$1,675
|
|
GAAP Gross
Margin
|
(2.6)
|
%
|
46.2
|
%
|
|
32.5
|
%
|
41.5
|
%
|
GAAP Operating
Loss
|
($678)
|
|
($19)
|
|
|
($789)
|
|
($109)
|
|
GAAP Diluted
EPS
|
($16.56)
|
|
($0.55)
|
|
|
($20.48)
|
|
($3.61)
|
|
Cash Flow from
Operations
|
$62
|
|
($3)
|
|
|
$78
|
|
$116
|
|
|
|
|
|
|
|
Non-GAAP
Revenue
|
$409
|
|
$488
|
|
|
$1,731
|
|
$1,759
|
|
Non-GAAP Gross
Margin
|
49.4
|
%
|
55.0
|
%
|
|
51.9
|
%
|
52.8
|
%
|
Non-GAAP Operating
Income
|
$48
|
|
$90
|
|
|
$247
|
|
$316
|
|
Non-GAAP Diluted
EPS
|
$0.30
|
|
$1.44
|
|
|
$3.13
|
|
$5.12
|
|
Adjusted
EBITDA
|
$60
|
|
$102
|
|
|
$293
|
|
$357
|
|
|
1 For
further information on supplemental non-GAAP metrics refer to the
Use of Non-GAAP And Comparative Financial
Information and Unaudited Reconciliations of GAAP Measures to
Non-GAAP Measures sections below. The Company's
preliminary unaudited financial results include an aggregate
impairment charge relating to goodwill and long-lived assets
of approximately $648 million. Due to the complexity of the
analysis resulting from economic uncertainty of COVID-19, the
Company is still in the process of finalizing the impairment
assessment, including the design and operation of internal
controls, so actual results may differ materially from the
preliminary unaudited results provided herein. The Company
expects to complete the impairment analysis and finalize the amount
of the impairment charges in connection with the filing
of the Company's Form 10-K for the fiscal year ended March 28,
2020, which is currently expected to be filed on or around
June 3, 2020. The Company is relying on Release No. 34-88465
(the "Order") issued by the Securities and Exchange
Commission (the "SEC") on March 25, 2020, pursuant to Section 36 of
the Securities Exchange Act of 1934, as amended
(the "Exchange Act), which provides conditional relief to public
companies unable to timely comply with their filing obligations
as a result of the novel coronavirus ("COVID-19")
outbreak.
|
2 YTD FY19
results shown here do not reflect Polycom results for the three
months ended June 30, 2018 due to the completion
of the Polycom acquisition on July 2, 2018.
|
"As the world responds to COVID-19, our better-than-anticipated
fourth-quarter performance is a result of the team's dedication to
delivering for our customers while safeguarding our employees,"
said Robert Hagerty, Chairman of the
Poly Board of Directors and Interim Chief Executive Officer. "Poly
solutions are more essential than ever, and we are well-positioned
to meet the increased demand for endpoints that enable a global
workforce that can work from anywhere."
Results Compared
to February 4, 2020 Guidance
|
|
|
Q4 FY20
Results
|
Q4 FY20 Guidance
Range3
|
GAAP Net
Revenue
|
$403M
|
$354M -
$394M
|
Non-GAAP Net
Revenue
|
$409M
|
$360M -
$400M
|
Adjusted
EBITDA
|
$60M
|
$20M -
$45M
|
Non-GAAP Diluted
EPS
|
$0.30
|
$(0.36) -
$0.19
|
|
3The non-GAAP revenue guidance range
shown here excludes the $6.1 million impact of purchase
accounting
related to recording deferred revenue at fair value at the time of
the acquisition.
|
"Increased demand for enterprise headsets allowed us to end the
quarter with a strong cash balance and favorable working capital
position," said Charles Boynton,
Executive Vice President and Chief Financial Officer. "To maximize
financial flexibility and liquidity, we have suspended the
dividend, deferred a voluntary debt prepayment, and are
aggressively managing our costs."
Highlights for the Fourth Quarter 2020
- Demand for enterprise headsets increased in March as customers
adjusted to "work-from-home" mandates, resulting in quarter-end
backlog of approximately six weeks. Headset demand continues to
remain elevated.
- The Company's in-house manufacturing site in Tijuana, Mexico has resumed production after
reconfiguring to implement specific safety protocols. Although
periodic supply chain disruptions continue, the Company is working
with its suppliers to manage component shortage and minimize
production delays.
- The Company ended fiscal Q4 with $226
million in cash and short-term investments. In order to
maintain maximum financial flexibility and liquidity, the Company
deferred a voluntary debt prepayment and suspended the quarterly
dividend.
- On February 20, 2020, the Company
amended its loan covenants related to its revolving credit
agreement, providing additional covenant headroom for the remainder
of calendar 2020.
- Recently introduced products include:
-
- Blackwire 8225, the first headset to incorporate advanced
hybrid active noise canceling and Poly Acoustic Fence technology to
remove distracting background noise
- Voyager 4245, a purpose-built Microsoft Teams-certified
headset
- Trio C60 audio conferencing solution, offering flexibility and
versatility in an intuitive package
- Launched Poly Lens, which combines seamless management and
updating tools with powerful insight into how Poly devices are
actually being used, providing greater control and simplicity to IT
administrators.
- Launched the new Poly Partner Program, bringing more than
15,000 partners from around the world together under one program.
The new program measures partners on more than just financial
contribution and is designed to drive mutual growth and
profitability through the sale of Poly products, solutions, and
services.
- The Company completed the sales of its Consumer Gaming
assets.
- In its fiscal Q1, the Company expect to book a restructuring
charge of $25 million to $35 million primarily related to office closures
and headcount reductions.
Impairment Charge
The Company's preliminary unaudited financial results include a
non-cash impairment charge of $180
million relating to the Company's intangible assets
and property, plant, and equipment related to long-lived assets in
the voice asset group, as well as a non-cash impairment charge of
$468 million to its goodwill related
to an overall decline in the Company's earnings and a sustained
decrease in its share price. Due to the complexity of the analysis
resulting from economic uncertainty of COVID-19, the Company is
still in the process of finalizing the impairment assessment,
including the design and operation of internal controls, so actual
results may differ materially from the preliminary unaudited
results provided herein. The Company expects to complete the
impairment analysis and finalize the amount of the impairment
charges in connection with the filing of the Company's Form 10-K
for the fiscal year ended March 28,
2020, which is currently expected to be filed on or around
June 3, 2020.
The impairment charges do not affect the Company's cash
position, cash flow from operations or debt covenants.
Poly Announces Suspension of Quarterly Dividend
On April 9, 2020, the Poly Board
of Directors suspended the quarterly cash dividend.
Business Outlook
The following statements are based on the Company's 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 the Company's expectations. Please
refer to the Forward Looking Statements Safe Harbor section
of this press release below.
The following represents the expected range of financial results
for the first quarter 2021 inclusive of factory overhead
underutilization due to lower production volumes, incremental
freight due to supply chain disruptions, and the cost of factory
reconfiguration (all amounts assuming currency rates remain
stable):
|
Q1 FY21
Guidance
|
GAAP Net
Revenue
|
$330M -
$365M
|
Non-GAAP
Revenue
|
$335M -
$370M
|
Adjusted
EBITDA1
|
$25M -
$45M
|
Non-GAAP Diluted
EPS1,2
|
$(0.18) -
$0.22
|
|
1 Q1
Adjusted EBITDA and non-GAAP diluted EPS guidance excludes
estimated intangibles amortization expense
of $32.4 million. With respect to adjusted EBITDA and diluted EPS
guidance, the Company has determined that it is
unable to provide quantitative reconciliations of these
forward-looking non-GAAP measures to the most directly
comparable forward-looking GAAP measures with a reasonable degree
of confidence in their accuracy without
unreasonable effort, as items including stock based compensation,
acquisition and integration costs, litigation gains
and losses, and impacts from discrete tax adjustments and tax laws
are inherently uncertain and depend on various
factors, many of which are beyond the Company's control.
|
2 EPS
guidance assumes approximately 41 million diluted average weighted
shares and a non-GAAP effective tax
rate of 18% to 20%.
|
Conference Call and Earnings Presentation
Poly is providing an earnings presentation in combination with
this press release. The presentation is offered to provide
shareholders and analysts with additional detail for analyzing
results. The presentation will be available in the Investor
Relations section of our corporate website at investor.poly.com
along with this press release. A reconciliation of our GAAP to
non-GAAP results is provided at the end of this press release.
We have scheduled a webcast to discuss fourth quarter fiscal
year 2020 financial results. The webcast will take place today,
May 27, 2020, at 2:00 PM (Pacific
Time). All interested investors and potential investors in
Poly stock are invited to join. To listen to the webcast, please
access the webcast link from our Investor Relations website at
investor.poly.com.
A replay of the webcast will be available shortly after its
conclusion and can be accessed from our Investor Relations website
at investor.poly.com.
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, including non-GAAP net revenues, non-GAAP gross profit,
non-GAAP operating expenses, non-GAAP operating income, non-GAAP
net income, adjusted EBITDA, and non-GAAP diluted EPS. These
non-GAAP measures are adjusted from the most directly comparable
GAAP measures to exclude, or include where applicable, the effect
of purchase accounting on deferred revenue and inventory, charges
associated with the optimization of our Consumer product line,
stock-based compensation, acquisition related expenses, purchase
accounting amortization and adjustments, restructuring and other
related charges and credits, impairment charges, rebranding costs,
other unusual and/or non-cash charges and credits, and the impact
of participating securities, all net of any associated tax impact.
We also exclude tax benefits from the release of tax reserves,
discrete tax adjustments including transfer pricing, tax deduction
and tax credit adjustments, and the impact of tax law changes. We
adjust these amounts from our non-GAAP measures primarily because
management does not believe they are consistent with the
development 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 historical and long-term
target operating model goals as well as our performance as a
combined company. We believe presenting non-GAAP net revenue
provides meaningful supplemental information regarding how
management views the performance of the business and underlying
performance of our individual product categories. 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 of, or as a substitute for, or superior to, net revenues,
gross margin, operating expenses, operating income, operating
margin, net income or EPS prepared in accordance with GAAP.
Forward Looking Statements Safe Harbor
This press 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 our intentions, beliefs,
projections, outlook, analyses or current expectations that are
subject to many risks and uncertainties. Such forward-looking
statements and the associated risks and uncertainties include,
among others: (i) our beliefs with respect to the length and
severity of the COVID-19 (coronavirus) outbreak, and its impact
across our businesses, our operations and global supply chain,
including (a) the potential impact on our ability to source
necessary component parts from key suppliers and volatility in
prices, including risks associated with our manufacturers which
could continue to negatively affect our profitability and/or market
share (b) our expectations that the virus has caused and will
continue to cause, an increase in customer and partner demand,
including increased demand in collaboration endpoints due to a
global, work from anywhere workforce, (c) expectations related to
our ability to timely supply the number of products to fulfill
current and future customer demand, (d) the impact of the virus on
our distribution partners, resellers, end-user customers and our
production facilities, including our ability to obtain alternative
sources of supply if our production facility or other suppliers are
impacted by future shut downs, (e) the impact if global or regional
economic conditions deteriorate further, on our customers and/or
partners, including increased demand for pricing accommodations,
delayed payments, delayed deployment plans, insolvency or other
issues which may increase credit losses, and (f) the complexity of
the forecast analysis, including scenario planning and the design
and operation of internal controls; and (ii) our belief that we can
manufacture or supply products in a timely manner to satisfy
orders; (iii) expectations related to our customers' purchasing
decisions and our ability to match product production to demand,
particularly 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; (iv) risks associated with
significant and abrupt changes in product demand which increases
the complexity of management's evaluation of potential excess or
obsolete inventory; (v) risks associated with the bankruptcy or
financial weakness of distributors or key customers, or the
bankruptcy of or reduction in capacity of our key suppliers; (vi)
risks associated with the potential interruption in the supply of
sole-sourced critical components, our ability to move to a
dual-source model, and the continuity of component supply at costs
consistent with our plans; (vii) expectations that our current cash
on hand, additional cash generated from operations, together with
sources of cash through our credit facility, either alone or in
combination with our election to defer debt repayment until after
the first quarter of fiscal year 2021 and our election to suspend
our dividend payments, will meet our liquidity needs during and
following the unknown duration and impact of the COVID-19 pandemic;
(viii) expectations relating to our ability to generate sufficient
cash flow from operations to meet our debt covenants and timely
repay all principal and interest amounts drawn under our credit
facility as they become due; (ix) risks associated with our channel
partners' sales reporting, product inventories and product sell
through since we sell a significant amount of products to channel
partners who maintain their own inventory of our products; (x) risk
and uncertainty related to the potential impact on our stock price
and investor confidence as a result of the suspension of our
dividend payment; (xi) our efforts to execute to drive sales and
sustainable profitable revenue growth; (xii) our expectations for
new products launches, the timing of their releases and their
expected impact on future growth and on our existing products;
(xiii) our belief that our new Partner Program will drive growth
and profitability for both us and our partners through the sale of
our product, services and solutions; (xiv) risks associated with
forecasting sales and procurement demands, which are inherently
difficult, particularly with continuing uncertainty in regional and
global economic conditions; (xv) uncertainties attributable to
currency fluctuations, including fluctuations in foreign exchange
rates and/or new or greater tariffs on our products; (xvi) our
expectations regarding our ability to control costs, streamline
operations and successfully implement our various cost-reduction
activities and realize anticipated cost savings under such
cost-reduction initiatives; (xvii) expectations relating to our
quarterly and annual earnings guidance, particularly as economic
uncertainty due to COVID-19 puts further pressure on management
judgments used to develop forward looking financial guidance and
other prospective financial information; (xviii) estimates of GAAP
and non-GAAP financial results for the fourth quarter and full
Fiscal Year 2020, including net revenues, adjusted EBITDA, tax
rates, intangibles amortization, impairment analysis, diluted
weighted average shares outstanding and diluted EPS; (xix) our
expectations of the impact of the acquisition of Polycom as it
relates to our strategic vision and additional market and strategic
partnership opportunities for our combined hardware, software and
services offerings; (xx) our beliefs regarding the UC&C market,
market dynamics and opportunities, and customer and partner
behavior as well as our position in the market, including risks
associated with the potential failure of our UC&C solutions to
be adopted with the breadth and speed we anticipate; (xxi) our
belief that the increased adoption of certain technologies and our
open architecture approach has and will continue to increase demand
for our solutions; (xxii) expectations related to the micro and
macro-economic conditions in our domestic and international markets
and their impact on our future business; (xxiii) our forecast and
estimates with respect to tax matters, including expectations with
respect to utilizing our deferred tax assets; (xxiv) our
expectations regarding pending and potential future litigation, in
addition to other matters discussed in this press release that are
not purely historical data, and (xxv) our estimates regarding the
amount of the goodwill and long-lived asset impairment charges to
be recorded in our fourth quarter results, which are subject to
change, including potentially materially, as the Company finalizes
the impairment assessment, including the design and operation of
internal controls.
We do not assume any obligation to update or revise any such
forward-looking statements, whether as the result of new
developments or otherwise.
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
17, 2019 and other filings with the Securities and Exchange
Commission, as well as recent press releases.
Financial Summaries
The following related charts are provided:
- Summary Unaudited Condensed Consolidated Financial
Statements
- Unaudited Reconciliations of GAAP Measures to Non-GAAP
Measures
About Poly
Poly is a global communications company that powers meaningful
human connection and collaboration. Poly combines legendary audio
expertise and powerful video and conferencing capabilities
to overcome the distractions, complexity and distance
that make communication in and out of the workplace challenging.
Poly believes in solutions that make life easier when they work
together and with our partner's services. Our headsets, software,
desk phones, audio and video conferencing, analytics and services
are used worldwide and are a leading choice for every kind of
workspace. For more information, please
visit: www.poly.com.
Poly and the propeller design are trademarks of Plantronics,
Inc. All other trademarks are the property of their respective
owners.
INVESTOR CONTACT:
Mike Iburg
Vice President, Investor Relations
(831) 458-7533
MEDIA CONTACT:
Edie Kissko
Senior Director and Head of Corporate Communications
(213) 369-3719
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
28,
|
|
March
30,
|
|
March
28,
|
|
March
30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Net product
revenues
|
|
$
|
338,221
|
|
|
$
|
408,758
|
|
|
$
|
1,432,736
|
|
|
$
|
1,510,770
|
|
|
Net services
revenues
|
|
64,822
|
|
|
59,730
|
|
|
264,254
|
|
|
163,765
|
|
|
Total net
revenues
|
|
403,043
|
|
|
468,488
|
|
|
1,696,990
|
|
|
1,674,535
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
Cost of product
revenues
|
|
391,418
|
|
|
226,008
|
|
|
1,049,826
|
|
|
902,625
|
|
|
Cost of service
revenues
|
|
21,953
|
|
|
25,949
|
|
|
94,929
|
|
|
77,771
|
|
|
Total cost of
revenues
|
|
413,371
|
|
|
251,957
|
|
|
1,144,755
|
|
|
980,396
|
|
|
Gross
profit
|
|
(10,328)
|
|
|
216,531
|
|
|
552,235
|
|
|
694,139
|
|
|
Gross profit
%
|
|
(2.6)
|
%
|
|
46.2
|
%
|
|
32.5
|
%
|
|
41.5
|
%
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research,
development, and engineering
|
|
47,569
|
|
|
61,477
|
|
|
218,277
|
|
|
201,886
|
|
|
Selling, general, and
administrative
|
|
612,478
|
|
|
161,325
|
|
|
1,069,459
|
|
|
567,879
|
|
|
(Gain) loss, net from
litigation settlements
|
|
419
|
|
|
1,005
|
|
|
(721)
|
|
|
975
|
|
|
Restructuring and
other related charges
|
|
7,080
|
|
|
11,983
|
|
|
54,177
|
|
|
32,694
|
|
|
Total operating
expenses
|
|
667,546
|
|
|
235,790
|
|
|
1,341,192
|
|
|
803,434
|
|
|
Operating
loss
|
|
(677,874)
|
|
|
(19,259)
|
|
|
(788,957)
|
|
|
(109,295)
|
|
|
Operating loss
%
|
|
(168.2)
|
%
|
|
(4.1)
|
%
|
|
(46.5)
|
%
|
|
(6.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(22,378)
|
|
|
(26,748)
|
|
|
(92,640)
|
|
|
(83,000)
|
|
|
Other non-operating
income, net
|
|
(563)
|
|
|
2,870
|
|
|
111
|
|
|
6,603
|
|
|
Income before income
taxes
|
|
(700,815)
|
|
|
(43,137)
|
|
|
(881,486)
|
|
|
(185,692)
|
|
|
Income tax
benefit
|
|
(37,995)
|
|
|
(21,548)
|
|
|
(69,401)
|
|
|
(50,131)
|
|
|
Net loss
|
|
$
|
(662,820)
|
|
|
$
|
(21,589)
|
|
|
$
|
(812,085)
|
|
|
$
|
(135,561)
|
|
|
|
|
|
|
|
|
|
|
|
|
% of net
revenues
|
|
(164.5)
|
%
|
|
(4.6)
|
%
|
|
(47.9)
|
%
|
|
(8.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(16.56)
|
|
|
$
|
(0.55)
|
|
|
$
|
(20.48)
|
|
|
$
|
(3.61)
|
|
|
Diluted
|
|
$
|
(16.56)
|
|
|
$
|
(0.55)
|
|
|
$
|
(20.48)
|
|
|
$
|
(3.61)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
40,025
|
|
|
39,089
|
|
|
39,658
|
|
|
37,569
|
|
|
Diluted
|
|
40,025
|
|
|
39,089
|
|
|
39,658
|
|
|
37,569
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
(5.4)
|
%
|
|
(50.0)
|
%
|
|
(7.9)
|
%
|
|
(27.0)
|
%
|
|
PLANTRONICS,
INC.
|
SUMMARY CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
|
($ in
thousands)
|
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
|
|
March
28,
|
|
March
30,
|
|
|
|
2020
|
|
2019
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
213,879
|
|
|
$
|
202,509
|
|
|
Short-term
investments
|
|
11,841
|
|
|
13,332
|
|
|
Total cash, cash
equivalents, and short-term investments
|
|
225,720
|
|
|
215,841
|
|
|
Accounts receivable,
net
|
|
246,835
|
|
|
337,671
|
|
|
Inventory,
net
|
|
164,527
|
|
|
177,146
|
|
|
Other current
assets
|
|
47,946
|
|
|
50,488
|
|
|
Total current
assets
|
|
685,028
|
|
|
781,146
|
|
|
Property, plant, and
equipment, net
|
|
165,858
|
|
|
204,826
|
|
|
Purchased
intangibles, net
|
|
466,915
|
|
|
825,675
|
|
|
Goodwill
|
|
811,314
|
|
|
1,278,380
|
|
|
Deferred tax and
other assets
|
|
143,157
|
|
|
26,508
|
|
|
Total
assets
|
|
$
|
2,272,272
|
|
|
$
|
3,116,535
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Accounts
payable
|
|
$
|
102,159
|
|
|
$
|
129,514
|
|
|
Accrued
liabilities
|
|
373,666
|
|
|
398,715
|
|
|
Total current
liabilities
|
|
475,825
|
|
|
528,229
|
|
|
Long-term debt, net
of issuance costs
|
|
1,621,694
|
|
|
1,640,801
|
|
|
Long-term income
taxes payable
|
|
98,319
|
|
|
83,121
|
|
|
Other long-term
liabilities
|
|
144,152
|
|
|
142,697
|
|
|
Total
liabilities
|
|
2,339,990
|
|
|
2,394,848
|
|
|
Stockholders'
equity
|
|
(67,718)
|
|
|
721,687
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,272,272
|
|
|
$
|
3,116,535
|
|
|
|
|
|
|
|
|
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
28,
|
|
March
30,
|
|
March
28,
|
|
March
30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(662,820)
|
|
|
$
|
(21,589)
|
|
|
$
|
(812,085)
|
|
|
$
|
(135,561)
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
57,632
|
|
|
58,606
|
|
|
230,262
|
|
|
201,369
|
|
|
Amortization of debt
issuance cost
|
|
1,340
|
|
|
1,405
|
|
|
5,402
|
|
|
4,593
|
|
|
Stock-based
compensation
|
|
15,596
|
|
|
11,225
|
|
|
57,095
|
|
|
41,934
|
|
|
Impairment of
goodwill and long-lived assets
|
|
648,231
|
|
|
—
|
|
|
648,231
|
|
|
—
|
|
|
Deferred income
taxes
|
|
(34,595)
|
|
|
(9,945)
|
|
|
(97,031)
|
|
|
(49,932)
|
|
|
Provision for excess
and obsolete inventories
|
|
5,039
|
|
|
2,505
|
|
|
24,115
|
|
|
7,386
|
|
|
Restructuring
charges
|
|
7,080
|
|
|
11,983
|
|
|
54,177
|
|
|
32,694
|
|
|
Cash payments for
restructuring charges
|
|
(7,384)
|
|
|
(18,241)
|
|
|
(37,269)
|
|
|
(29,463)
|
|
|
Other operating
activities
|
|
8,334
|
|
|
570
|
|
|
11,534
|
|
|
9,640
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(786)
|
|
|
25,631
|
|
|
33,848
|
|
|
(10,307)
|
|
|
Inventory,
net
|
|
42,611
|
|
|
(18,200)
|
|
|
(6,709)
|
|
|
(7,182)
|
|
|
Current and other
assets
|
|
(288)
|
|
|
291
|
|
|
23,854
|
|
|
30,747
|
|
|
Accounts
payable
|
|
(21,078)
|
|
|
(12,861)
|
|
|
(31,768)
|
|
|
3,658
|
|
|
Accrued
liabilities
|
|
165
|
|
|
(11,084)
|
|
|
(46,741)
|
|
|
61,593
|
|
|
Income
taxes
|
|
2,587
|
|
|
(23,491)
|
|
|
21,103
|
|
|
(45,122)
|
|
|
Cash provided
(used) by operating activities
|
|
$
|
61,664
|
|
|
$
|
(3,195)
|
|
|
$
|
78,019
|
|
|
$
|
116,047
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of
investments
|
|
1,996
|
|
|
5,501
|
|
|
2,173
|
|
|
131,300
|
|
|
Proceeds from
maturities of investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
131,017
|
|
|
Purchase of
investments
|
|
(95)
|
|
|
(124)
|
|
|
(1,067)
|
|
|
(822)
|
|
|
Acquisitions, net of
cash acquired
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,642,241)
|
|
|
Capital
expenditures
|
|
(5,896)
|
|
|
(10,649)
|
|
|
(22,880)
|
|
|
(26,797)
|
|
|
Proceeds from sale of
property, plant, and equipment and assets
held for sale
|
|
2,550
|
|
|
—
|
|
|
4,692
|
|
|
—
|
|
|
Cash used for
investing activities
|
|
$
|
(1,445)
|
|
|
$
|
(5,272)
|
|
|
$
|
(17,082)
|
|
|
$
|
(1,407,543)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
Repurchase of common
stock
|
|
—
|
|
|
(8,397)
|
|
|
—
|
|
|
(13,177)
|
|
|
Employees' tax
withheld and paid for restricted stock and restricted
stock units
|
|
(222)
|
|
|
(207)
|
|
|
(9,891)
|
|
|
(14,070)
|
|
|
Proceeds from
issuances under stock-based compensation plans
|
|
5,869
|
|
|
805
|
|
|
12,486
|
|
|
15,730
|
|
|
Repayments of
long-term debt
|
|
—
|
|
|
(103,188)
|
|
|
(25,000)
|
|
|
(103,188)
|
|
|
Proceeds from debt
issuance, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,244,713
|
|
|
Payment of cash
dividends
|
|
(6,060)
|
|
|
(5,927)
|
|
|
(23,970)
|
|
|
(22,880)
|
|
|
Cash provided from
(used for) financing activities
|
|
$
|
(413)
|
|
|
$
|
(116,914)
|
|
|
$
|
(46,375)
|
|
|
$
|
1,107,128
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(2,748)
|
|
|
(266)
|
|
|
(3,192)
|
|
|
(3,784)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
57,058
|
|
|
(125,647)
|
|
|
11,370
|
|
|
(188,152)
|
|
|
Cash and cash
equivalents at beginning of period
|
|
156,821
|
|
|
328,156
|
|
|
202,509
|
|
|
390,661
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
213,879
|
|
|
$
|
202,509
|
|
|
$
|
213,879
|
|
|
$
|
202,509
|
|
|
|
|
|
|
|
|
|
|
|
|
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
28,
|
|
March
30,
|
|
March
28,
|
|
March
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
revenues
|
$
|
403,043
|
|
|
$
|
468,488
|
|
|
$
|
1,696,990
|
|
|
$
|
1,674,535
|
|
|
Deferred revenue
purchase accounting1
|
6,138
|
|
|
19,316
|
|
|
33,953
|
|
|
84,824
|
|
|
Non-GAAP Net
revenues
|
$
|
409,181
|
|
|
$
|
487,804
|
|
|
$
|
1,730,943
|
|
|
$
|
1,759,359
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross
profit
|
$
|
(10,328)
|
|
|
$
|
216,531
|
|
|
$
|
552,235
|
|
|
$
|
694,139
|
|
|
Purchase accounting
amortization2
|
31,018
|
|
|
31,118
|
|
|
122,553
|
|
|
114,361
|
|
|
Inventory valuation
adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
30,395
|
|
|
Deferred revenue
purchase accounting1
|
6,138
|
|
|
19,316
|
|
|
33,953
|
|
|
84,824
|
|
|
Consumer
optimization4
|
—
|
|
|
—
|
|
|
10,415
|
|
|
—
|
|
|
Integration and
Rebranding costs
|
42
|
|
|
435
|
|
|
1,211
|
|
|
1,057
|
|
|
Stock-based
compensation
|
998
|
|
|
1,073
|
|
|
3,992
|
|
|
4,176
|
|
|
Impairment
Charges
|
174,235
|
|
|
—
|
|
|
174,235
|
|
|
—
|
|
|
Non-GAAP Gross
profit
|
$
|
202,103
|
|
|
$
|
268,473
|
|
|
$
|
898,594
|
|
|
$
|
928,952
|
|
|
Non-GAAP Gross
profit %
|
49.4
|
%
|
|
55.0
|
%
|
|
51.9
|
%
|
|
52.8
|
%
|
|
|
|
|
|
|
|
|
|
|
GAAP Research,
development, and engineering
|
$
|
47,569
|
|
|
$
|
61,477
|
|
|
$
|
218,277
|
|
|
$
|
201,886
|
|
|
Stock-based
compensation
|
(4,270)
|
|
|
(3,822)
|
|
|
(16,785)
|
|
|
(11,699)
|
|
|
Integration and
Rebranding costs
|
59
|
|
|
(86)
|
|
|
(2,381)
|
|
|
(237)
|
|
|
Other
adjustments3
|
—
|
|
|
—
|
|
|
(542)
|
|
|
—
|
|
|
Non-GAAP Research,
development, and engineering
|
$
|
43,358
|
|
|
$
|
57,569
|
|
|
$
|
198,569
|
|
|
$
|
189,950
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Selling,
general, and administrative
|
$
|
612,478
|
|
|
$
|
161,325
|
|
|
$
|
1,069,459
|
|
|
$
|
567,879
|
|
|
Integration and
Rebranding costs
|
(2,338)
|
|
|
(18,994)
|
|
|
(44,625)
|
|
|
(72,553)
|
|
|
Purchase accounting
amortization2
|
(15,278)
|
|
|
(15,281)
|
|
|
(61,112)
|
|
|
(45,838)
|
|
|
Stock-based
compensation
|
(10,328)
|
|
|
(6,330)
|
|
|
(36,318)
|
|
|
(26,059)
|
|
|
Impairment
Charges
|
(473,996)
|
|
|
—
|
|
|
(473,996)
|
|
|
—
|
|
|
Non-GAAP Selling,
general, and administrative
|
$
|
110,538
|
|
|
$
|
120,720
|
|
|
$
|
453,408
|
|
|
$
|
423,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Deferred revenue
purchase accounting: Represents the impact of fair value
purchase accounting adjustments related to deferred revenue
recorded in connection with the acquisition of Polycom on July 2,
2018. The Company's deferred revenue primarily relates to Service
revenue
associated with non-cancelable maintenance support on hardware
devices which are typically billed in advance and recognized
ratably over
the contract term as those services are delivered. This adjustment
represents the amount of additional revenue that would have been
recognized
during the period absent the write-down to fair value required
under purchase accounting guidelines.
|
2
|
|
Purchase
accounting amortization: Represents the amortization of
purchased intangible assets recorded in connection with the
acquisition
of Polycom on July 2, 2018.
|
3
|
|
Other
adjustments: Excluded amounts represent executive
transition costs.
|
4
|
|
Consumer
Optimization: Excluded amounts represent inventory related
reserves associated with optimizing the consumer product
portfolio.
|
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
28,
|
|
March
30,
|
|
March
28,
|
|
March
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
expenses
|
$
|
667,546
|
|
|
$
|
235,790
|
|
|
$
|
1,341,192
|
|
|
$
|
803,434
|
|
|
Integration and
Rebranding costs
|
(2,279)
|
|
|
(19,080)
|
|
|
(47,006)
|
|
|
(72,790)
|
|
|
Purchase accounting
amortization2
|
(15,278)
|
|
|
(15,281)
|
|
|
(61,112)
|
|
|
(45,838)
|
|
|
Stock-based
compensation
|
(14,598)
|
|
|
(10,152)
|
|
|
(53,103)
|
|
|
(37,758)
|
|
|
Restructuring and
other related charges
|
(7,080)
|
|
|
(11,983)
|
|
|
(54,176)
|
|
|
(32,694)
|
|
|
Impairment
Charges
|
(473,996)
|
|
|
—
|
|
|
(473,996)
|
|
|
—
|
|
|
Other
adjustments3
|
(419)
|
|
|
(1,005)
|
|
|
201
|
|
|
(1,005)
|
|
|
Non-GAAP Operating
expenses
|
$
|
153,896
|
|
|
$
|
178,289
|
|
|
$
|
652,000
|
|
|
$
|
613,349
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
loss
|
$
|
(677,874)
|
|
|
$
|
(19,259)
|
|
|
$
|
(788,957)
|
|
|
$
|
(109,295)
|
|
|
Purchase accounting
amortization2
|
46,296
|
|
|
46,399
|
|
|
183,665
|
|
|
160,199
|
|
|
Inventory valuation
adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
30,395
|
|
|
Deferred revenue
purchase accounting1
|
6,138
|
|
|
19,316
|
|
|
33,953
|
|
|
84,824
|
|
|
Consumer
optimization4
|
—
|
|
|
—
|
|
|
10,415
|
|
|
—
|
|
|
Integration and
Rebranding costs
|
2,321
|
|
|
19,515
|
|
|
48,217
|
|
|
73,847
|
|
|
Stock-based
compensation
|
15,596
|
|
|
11,225
|
|
|
57,095
|
|
|
41,934
|
|
|
Restructuring and
other related charges
|
7,080
|
|
|
11,983
|
|
|
54,176
|
|
|
32,694
|
|
|
Impairment
Charges
|
648,231
|
|
|
—
|
|
|
648,231
|
|
|
—
|
|
|
Other
adjustments3
|
419
|
|
|
1,005
|
|
|
(201)
|
|
|
1,005
|
|
|
Non-GAAP Operating
income
|
$
|
48,207
|
|
|
$
|
90,184
|
|
|
$
|
246,594
|
|
|
$
|
315,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Deferred revenue
purchase accounting: Represents the impact of fair value
purchase accounting adjustments related to
deferred revenue recorded in connection with the acquisition of
Polycom on July 2, 2018. The Company's deferred revenue
primarily relates to Service revenue associated with non-cancelable
maintenance support on hardware devices which are
typically billed in advance and recognized ratably over the
contract term as those services are delivered. This adjustment
represents the amount of additional revenue that would have been
recognized during the period absent the write-down to
fair value required under purchase accounting
guidelines.
|
2
|
Purchase
accounting amortization: Represents the amortization of
purchased intangible assets recorded in connection with
the acquisition of Polycom on July 2, 2018.
|
3
|
Other
adjustments: Excluded amounts represent immaterial losses from
litigation and gains from non-recurring sales of
investments. Excluded amounts represent immaterial adjustments for
loss on sale of assets and write off of indirect tax assets
and executive transition costs.
|
4
|
Consumer
Optimization: Excluded amounts represent inventory related
reserves associated with optimizing the consumer
product portfolio.
|
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
28,
|
|
March
30,
|
|
March
28,
|
|
March
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
GAAP Net
loss
|
$
|
(662,820)
|
|
|
$
|
(21,589)
|
|
|
$
|
(812,085)
|
|
|
$
|
(135,561)
|
|
|
Purchase accounting
amortization2
|
46,296
|
|
|
46,399
|
|
|
183,665
|
|
|
160,199
|
|
|
Inventory valuation
adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
30,395
|
|
|
Deferred revenue
purchase accounting1
|
6,138
|
|
|
19,316
|
|
|
33,953
|
|
|
84,824
|
|
|
Consumer
optimization4
|
—
|
|
|
—
|
|
|
10,415
|
|
|
—
|
|
|
Integration and
Rebranding costs
|
2,321
|
|
|
19,515
|
|
|
48,217
|
|
|
73,847
|
|
|
Stock-based
compensation
|
15,596
|
|
|
11,225
|
|
|
57,095
|
|
|
41,934
|
|
|
Restructuring and
other related charges
|
7,080
|
|
|
11,983
|
|
|
54,176
|
|
|
32,694
|
|
|
Impairment
Charges
|
648,231
|
|
|
—
|
|
|
648,231
|
|
|
—
|
|
|
Other
adjustments3
|
419
|
|
|
(1,578)
|
|
|
(201)
|
|
|
(1,578)
|
|
|
Income tax effect of
above items
|
(47,866)
|
|
|
(16,938)
|
|
|
(92,640)
|
|
|
(73,872)
|
|
|
Income tax effect of
unusual tax items
|
(3,503)
|
|
3
|
|
(11,557)
|
|
5
|
(5,744)
|
|
|
(16,946)
|
|
5
|
Non-GAAP Net
income
|
$
|
11,892
|
|
|
$
|
56,776
|
|
|
$
|
125,083
|
|
|
$
|
195,936
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted earnings
per common share
|
$
|
(16.56)
|
|
|
$
|
(0.55)
|
|
|
$
|
(20.48)
|
|
|
$
|
(3.61)
|
|
|
Purchase accounting
amortization2
|
1.15
|
|
|
1.17
|
|
|
4.59
|
|
|
4.19
|
|
|
Inventory valuation
adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
0.79
|
|
|
Deferred revenue
purchase accounting1
|
0.15
|
|
|
0.49
|
|
|
0.85
|
|
|
2.22
|
|
|
Consumer
optimization4
|
—
|
|
|
—
|
|
|
0.26
|
|
|
—
|
|
|
Stock-based
compensation
|
0.39
|
|
|
0.28
|
|
|
1.43
|
|
|
1.10
|
|
|
Integration and
Rebranding costs
|
0.06
|
|
|
0.50
|
|
|
1.21
|
|
|
1.93
|
|
|
Restructuring and
other related charges
|
0.18
|
|
|
0.30
|
|
|
1.36
|
|
|
0.85
|
|
|
Impairment
Charges
|
16.11
|
|
|
—
|
|
|
16.21
|
|
|
—
|
|
|
Other
adjustments3
|
—
|
|
|
(0.04)
|
|
|
(0.01)
|
|
|
(0.04)
|
|
|
Income tax
effect
|
(1.18)
|
|
|
(0.73)
|
|
|
(2.47)
|
|
|
(2.37)
|
|
|
Effect of
anti-dilutive securities
|
—
|
|
|
0.02
|
|
|
0.18
|
|
|
0.06
|
|
|
Non-GAAP Diluted
earnings per common
share
|
$
|
0.30
|
|
|
$
|
1.44
|
|
|
$
|
3.13
|
|
|
$
|
5.12
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
diluted earnings per
common share calculation:
|
|
|
|
|
|
|
|
|
GAAP
|
40,025
|
|
|
39,089
|
|
|
39,658
|
|
|
37,569
|
|
|
non-GAAP
|
40,235
|
|
|
39,523
|
|
|
39,978
|
|
|
38,271
|
|
|
|
|
1
|
Deferred revenue
purchase accounting: Represents the impact of fair value
purchase accounting adjustments related to deferred
revenue recorded in connection with the acquisition of Polycom on
July 2, 2018. The Company's deferred revenue primarily relates
to
Service revenue associated with non-cancelable maintenance support
on hardware devices which are typically billed in advance and
recognized ratably over the contract term as those services are
delivered. This adjustment represents the amount of additional
revenue
that would have been recognized during the period absent the
write-down to fair value required under purchase accounting
guidelines.
|
2
|
Purchase
accounting amortization: Represents the amortization of
purchased intangible assets recorded in connection with the
acquisition of Polycom on July 2, 2018.
|
3
|
Other
adjustments: Excluded amounts represent immaterial losses from
litigation and gains from non-recurring sales of investments.
Excluded amounts represent immaterial adjustments for loss on sale
of assets and write off of indirect tax assets and executive
transition
costs.
|
4
|
Consumer
Optimization: Excluded amounts represent inventory related
reserves associated with optimizing the consumer product
portfolio.
|
5
|
Excluded amounts
primarily represent the release of tax reserves as a result of
legal entity integration activities.
|
PLANTRONICS,
INC.
|
UNAUDITED
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP
MEASURES
|
($ in
thousands)
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
March
30,
|
|
June
29,
|
|
September
28,
|
|
December
28,
|
|
March
28,
|
|
March
28,
|
|
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2020
|
|
2020
|
|
GAAP Net
loss
|
|
$
|
(21,589)
|
|
|
$
|
(44,871)
|
|
|
$
|
(25,910)
|
|
|
$
|
(78,483)
|
|
|
$
|
(662,820)
|
|
|
$
|
(812,084)
|
|
|
Tax
provision
|
|
(21,548)
|
|
|
(7,577)
|
|
|
(4,122)
|
|
|
(19,708)
|
|
|
(37,995)
|
|
|
(69,402)
|
|
|
Interest
Expense
|
|
26,748
|
|
|
23,932
|
|
|
23,797
|
|
|
22,533
|
|
|
22,378
|
|
|
92,640
|
|
|
Other Income and
Expense
|
|
(2,870)
|
|
|
(333)
|
|
|
625
|
|
|
(967)
|
|
|
562
|
|
|
(113)
|
|
|
Deferred revenue
purchase
accounting1
|
|
19,316
|
|
|
12,159
|
|
|
8,524
|
|
|
7,131
|
|
|
6,138
|
|
|
33,952
|
|
|
Consumer
optimization3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,415
|
|
|
—
|
|
|
10,415
|
|
|
Integration and
Rebranding
costs
|
|
19,515
|
|
|
25,890
|
|
|
11,329
|
|
|
8,677
|
|
|
2,321
|
|
|
48,217
|
|
|
Stock-based
compensation
|
|
11,225
|
|
|
12,904
|
|
|
14,693
|
|
|
13,902
|
|
|
15,596
|
|
|
57,095
|
|
|
Restructuring and
other related
charges
|
|
11,983
|
|
|
19,525
|
|
|
5,847
|
|
|
21,724
|
|
|
7,080
|
|
|
54,176
|
|
|
Impairment
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
648,231
|
|
|
648,231
|
|
|
Other
adjustments2
|
|
1,005
|
|
|
(1,162)
|
|
|
542
|
|
|
—
|
|
|
419
|
|
|
(201)
|
|
|
Depreciation and
amortization
|
|
58,606
|
|
|
57,698
|
|
|
57,376
|
|
|
57,556
|
|
|
57,632
|
|
|
230,262
|
|
|
Adjusted
EBITDA
|
|
$
|
102,391
|
|
|
$
|
98,165
|
|
|
$
|
92,701
|
|
|
$
|
42,780
|
|
|
$
|
59,542
|
|
|
$
|
293,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Deferred revenue
purchase accounting: Represents the impact of fair value
purchase accounting adjustments related to deferred revenue
recorded in connection with the
acquisition of Polycom on July 2, 2018. The Company's deferred
revenue primarily relates to Service revenue associated with
non-cancelable maintenance support on hardware
devices which are typically billed in advance and recognized
ratably over the contract term as those services are delivered.
This adjustment represents the amount of additional
revenue that would have been recognized during the period absent
the write-down to fair value required under purchase accounting
guidelines.
|
2
|
Other
adjustments: Excluded amounts represent immaterial losses from
litigation and gains from non-recurring sales of investments.
Excluded amounts represent immaterial
adjustments for loss on sale of assets and write off of indirect
tax assets and executive transition costs.
|
3
|
Consumer
Optimization: Excluded amounts represent inventory related
reserves associated with optimizing the consumer product
portfolio.
|
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SOURCE Plantronics, Inc.