SANTA CRUZ, Calif.,
Oct. 29, 2020 /PRNewswire/
-- Poly (NYSE: PLT) today announced second quarter results for
the period ending September 26,
2020.
Highlights for the second quarter include the
following:
- Poly posted record Enterprise Headset revenue and unit
shipments, and shipped a record number of Video endpoints resulting
in the highest Video revenue since the Polycom acquisition.
- The Company announced Poly Sync, a new family of smart, USB and
Bluetooth speakerphones with advanced voice tracking, noise block
technology, and virtual assistant integration.
- Poly continues to offer the broadest range of Microsoft Teams
and Zoom certified endpoints for hybrid work, whether at home or in
the office. This quarter, Zoom certified the Poly Sync 20 personal
speakerphone.
- The Company retired $37M of debt
and ended the quarter with $228M in
cash and short-term investments.
"Poly's products are ideally suited for the hybrid
work-from-home and work-from-anywhere trends, and we are pivoting
aggressively toward this opportunity," said Dave Shull, Poly President and Chief Executive
Officer. "It's all about execution and delivering for our customers
and partners. We are hyper-focused on turning around the
company."
"The underlying strength in the business gave us confidence to
resume retiring debt," said Chuck
Boynton, Executive Vice President and Chief Financial
Officer. "We plan to capitalize on the market growth in headsets
and video to drive higher revenue, improve our profitability, and
accelerate de-levering."
($ Millions, except
percent and per-share data)1
|
Q2
FY21
|
Q2
FY20
|
|
YTD
FY21
|
YTD
FY20
|
GAAP
Revenue
|
$411
|
|
$462
|
|
|
$767
|
|
$909
|
|
GAAP Gross
Margin
|
44.0
|
%
|
44.6
|
%
|
|
44.0
|
%
|
46.0
|
%
|
GAAP Operating
Income / (Loss)
|
$7
|
|
($6)
|
|
|
($50)
|
|
($34)
|
|
GAAP Diluted
EPS
|
($0.33)
|
|
($0.65)
|
|
|
($2.17)
|
|
($1.80)
|
|
Cash Flow from
Operations
|
($1)
|
|
$25
|
|
|
$40
|
|
$34
|
|
|
|
|
|
|
|
Non-GAAP
Revenue
|
$415
|
|
$470
|
|
|
$776
|
|
$930
|
|
Non-GAAP Gross
Margin
|
48.9
|
%
|
52.4
|
%
|
|
49.4
|
%
|
54.1
|
%
|
Non-GAAP Operating
Income
|
$59
|
|
$81
|
|
|
$96
|
|
$167
|
|
Non-GAAP Diluted
EPS
|
$0.93
|
|
$1.24
|
|
|
$1.27
|
|
$2.55
|
|
Adjusted
EBITDA
|
$69
|
|
$93
|
|
|
$117
|
|
$191
|
|
|
|
1
|
For further
information on supplemental non-GAAP metrics refer to the Use of
Non-GAAP Financial Information and Unaudited Reconciliations of
GAAP Measures to Non-GAAP Measures sections below.
|
Results Compared to July 28,
2020 Guidance
|
Q2 FY21
Results
|
Q2 FY21 Guidance
Range2
|
GAAP Net
Revenue
|
$411M
|
$346M -
$386M
|
Non-GAAP Net
Revenue
|
$415M
|
$350M -
$390M
|
Adjusted
EBITDA
|
$69M
|
$45M -
$65M
|
Non-GAAP Diluted
EPS
|
$0.93
|
$0.25 -
$0.65
|
|
|
2
|
The non-GAAP
revenue guidance range shown here excludes the $4.2 million impact
of purchase accounting related to recording deferred revenue at
fair value at the time of the acquisition.
|
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 fiscal third quarter of 2021 (all amounts assume currency
rates remain stable):
|
Q3 FY21
Guidance
|
GAAP Net
Revenue
|
$417M -
$447M
|
Non-GAAP
Revenue
|
$420M -
$450M
|
Adjusted
EBITDA1
|
$70M -
$80M
|
Non-GAAP Diluted
EPS1,2
|
$0.85 -
$1.05
|
|
|
1
|
Q3 Adjusted EBITDA
and non-GAAP diluted EPS guidance excludes estimated intangibles
amortization expense of $30.7 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, 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 42 million diluted average weighted shares and a
non-GAAP effective tax rate of 11% to 13%.
|
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 second quarter fiscal
year 2021 financial results. The webcast will take place today,
October 29, 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, 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, but
are not limited to: (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) our expectations the virus has caused and will
continue to cause an increase in customer and partner demand for
our product lines, including increased demand in collaboration
endpoints, and our ability to design new product offerings to meet
the change in demand due to a global hybrid work environment; (b)
our inability to source component parts from key suppliers in
sufficient quantities necessary to meet the high demand for certain
product lines, including our Enterprise Headsets; and continued
uncertainty and potential impact on future quarters if these
sourcing constraints continue and/or price volatility
occurs, which could continue to negatively affect our
profitability and/or market share; (c) expectations related to our
voice product lines, as well as our services attachment rate for
such products, which have been, and may continue to be, negatively
impacted as companies have delayed returning their workforces to
offices in many countries due to the continued impact of COVID-19;
(d) expectations related to our ability to fulfill the backlog
generated by supply constraints, to timely supply the number of
products to fulfill current and future customer demand, including
expectations that our manufacturing facility in Tijuana, Mexico
will continue production at the capacity necessary to meet such
demand; (e) 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; (f) 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; (g) risks related to restrictions
or delays in global return to worksites as a result of COVID-19,
which continues to impact our employees worldwide and our
customers, which has negatively impacted our voice product lines
for the quarter, and restricted customer engagement; and (h) the
complexity of the forecast analysis 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 perishable demand;
(iii) expectations related to our customers' purchasing decisions
and our ability to pivot quickly enough and/or 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, which has negatively impacted in the
quarter and may continue to impact our ability to timely supply
product to meet our customer demand; (vii) expectations related to
our services segment revenues, particularly as we introduce new
generation, less complex, product solutions, or as companies shift
from on premises to work from home options for their workforce,
which may result in decreased demand for our professional,
installation and/or managed service offerings; (viii) 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
suspend our dividend payments, will meet our liquidity needs during
and following the unknown duration and impact of the COVID-19
pandemic; (ix) 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; (x) 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;
(xi) our efforts to execute to drive sales and sustainable
profitable revenue growth, to improve our profitability and cash
flow, and accelerate debt reduction and de-levering; (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 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, including, without limitation, uncertainty
related to the continued impact of COVID-19, the macro-economic and
political climate and other external factors, puts further pressure
on management judgments used to develop forward looking financial
guidance and other prospective financial information; (xviii)
expectations related to GAAP and non-GAAP financial results for the
second quarter and full Fiscal Year 2021, including net revenues,
adjusted EBITDA, tax rates, intangibles amortization, 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 related to building strategic alliances and key
partnerships with providers of collaboration tools and platforms to
drive revenue growth and market share; and (xxv) our expectations
regarding pending and potential future litigation, in addition to
other matters discussed in this press release that are not purely
historical data. Such forward-looking statements are based on
current expectations and assumptions and are subject to risks and
uncertainties that may cause actual results to differ materially
from the forward-looking statements.
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 June
8, 2020 and other filings with the Securities and Exchange
Commission, as well as recent press releases.
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:
|
MEDIA
CONTACT:
|
Mike
Iburg
|
Edie
Kissko
|
Vice President,
Investor Relations
|
Vice President,
Corporate Communications
|
(831)
458-7533
|
(213)
369-3719
|
PLANTRONICS,
INC.
|
SUMMARY CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
|
($ in thousands,
except per share data)
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
September
26,
|
|
September
28,
|
|
September
26,
|
|
September
28,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Net product
revenues
|
|
$
|
347,677
|
|
|
$
|
395,137
|
|
|
$
|
639,135
|
|
|
$
|
777,882
|
|
|
Net services
revenues
|
|
63,292
|
|
|
66,572
|
|
|
127,554
|
|
|
131,594
|
|
|
Total net
revenues
|
|
410,969
|
|
|
461,709
|
|
|
766,689
|
|
|
909,476
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
Cost of product
revenues
|
|
209,261
|
|
|
229,323
|
|
|
385,876
|
|
|
437,939
|
|
|
Cost of service
revenues
|
|
20,962
|
|
|
26,315
|
|
|
43,735
|
|
|
52,820
|
|
|
Total cost of
revenues
|
|
230,223
|
|
|
255,638
|
|
|
429,611
|
|
|
490,759
|
|
|
Gross
profit
|
|
180,746
|
|
|
206,071
|
|
|
337,078
|
|
|
418,717
|
|
|
Gross profit
%
|
|
44.0
|
%
|
|
44.6
|
%
|
|
44.0
|
%
|
|
46.0
|
%
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research, development,
and engineering
|
|
52,148
|
|
|
57,415
|
|
|
102,177
|
|
|
116,939
|
|
|
Selling, general, and
administrative
|
|
115,605
|
|
|
148,419
|
|
|
232,250
|
|
|
312,027
|
|
|
(Gain) loss, net from
litigation settlements
|
|
—
|
|
|
—
|
|
|
17,561
|
|
|
(1,162)
|
|
|
Restructuring and
other related charges
|
|
6,170
|
|
|
5,847
|
|
|
35,500
|
|
|
25,372
|
|
|
Total operating
expenses
|
|
173,923
|
|
|
211,681
|
|
|
387,488
|
|
|
453,176
|
|
|
Operating income
(loss)
|
|
6,823
|
|
|
(5,610)
|
|
|
(50,410)
|
|
|
(34,459)
|
|
|
Operating income
(loss) %
|
|
1.7
|
%
|
|
(1.2)
|
%
|
|
(6.6)
|
%
|
|
(3.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(18,581)
|
|
|
(23,797)
|
|
|
(39,765)
|
|
|
(47,729)
|
|
|
Other non-operating
income (loss), net
|
|
1,366
|
|
|
(625)
|
|
|
1,592
|
|
|
(292)
|
|
|
Loss before income
taxes
|
|
(10,392)
|
|
|
(30,032)
|
|
|
(88,583)
|
|
|
(82,480)
|
|
|
Income tax expense
(benefit)
|
|
3,013
|
|
|
(4,122)
|
|
|
(163)
|
|
|
(11,699)
|
|
|
Net loss
|
|
$
|
(13,405)
|
|
|
$
|
(25,910)
|
|
|
$
|
(88,420)
|
|
|
$
|
(70,781)
|
|
|
|
|
|
|
|
|
|
|
|
|
% of net
revenues
|
|
(3.3)
|
%
|
|
(5.6)
|
%
|
|
(11.5)
|
%
|
|
(7.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.33)
|
|
|
$
|
(0.65)
|
|
|
$
|
(2.17)
|
|
|
$
|
(1.80)
|
|
|
Diluted
|
|
$
|
(0.33)
|
|
|
$
|
(0.65)
|
|
|
$
|
(2.17)
|
|
|
$
|
(1.80)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing earnings per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
40,970
|
|
|
39,584
|
|
|
40,715
|
|
|
39,411
|
|
|
Diluted
|
|
40,970
|
|
|
39,584
|
|
|
40,715
|
|
|
39,411
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
(29.0)
|
%
|
|
13.7
|
%
|
|
0.2
|
%
|
|
14.2
|
%
|
|
PLANTRONICS,
INC.
|
SUMMARY CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
|
($ in
thousands)
|
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
|
|
September
26,
|
|
March
28,
|
|
|
|
2020
|
|
2020
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
213,901
|
|
|
$
|
213,879
|
|
|
Short-term
investments
|
|
13,975
|
|
|
11,841
|
|
|
Total cash, cash
equivalents, and short-term investments
|
|
227,876
|
|
|
225,720
|
|
|
Accounts receivable,
net
|
|
239,479
|
|
|
246,835
|
|
|
Inventory,
net
|
|
183,636
|
|
|
164,527
|
|
|
Other current
assets
|
|
51,987
|
|
|
47,946
|
|
|
Total current
assets
|
|
702,978
|
|
|
685,028
|
|
|
Property, plant, and
equipment, net
|
|
150,348
|
|
|
165,858
|
|
|
Purchased intangibles,
net
|
|
403,110
|
|
|
466,915
|
|
|
Goodwill
|
|
796,216
|
|
|
796,216
|
|
|
Deferred tax and other
assets
|
|
148,891
|
|
|
143,157
|
|
|
Total
assets
|
|
$
|
2,201,543
|
|
|
$
|
2,257,174
|
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
Accounts
payable
|
|
$
|
136,463
|
|
|
$
|
102,159
|
|
|
Accrued
liabilities
|
|
373,458
|
|
|
373,666
|
|
|
Total current
liabilities
|
|
509,921
|
|
|
475,825
|
|
|
Long-term debt, net of
issuance costs
|
|
1,587,556
|
|
|
1,621,694
|
|
|
Long-term income taxes
payable
|
|
91,235
|
|
|
98,319
|
|
|
Other long-term
liabilities
|
|
157,836
|
|
|
144,152
|
|
|
Total
liabilities
|
|
2,346,548
|
|
|
2,339,990
|
|
|
Stockholders'
deficit
|
|
(145,005)
|
|
|
(82,816)
|
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
2,201,543
|
|
|
$
|
2,257,174
|
|
|
|
|
|
|
|
|
PLANTRONICS,
INC.
|
|
SUMMARY CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
|
|
($ in thousands,
except per share data)
|
|
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
September
26,
|
|
September
28,
|
|
September
26,
|
|
September
28,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(13,405)
|
|
|
$
|
(25,910)
|
|
|
$
|
(88,420)
|
|
|
$
|
(70,781)
|
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
40,971
|
|
|
57,376
|
|
|
84,371
|
|
|
115,074
|
|
|
Amortization of debt
issuance cost
|
|
1,320
|
|
|
1,361
|
|
|
2,660
|
|
|
2,722
|
|
|
Stock-based
compensation
|
|
10,263
|
|
|
14,693
|
|
|
19,618
|
|
|
27,597
|
|
|
Deferred income
taxes
|
|
3,113
|
|
|
(15,657)
|
|
|
(4,056)
|
|
|
(45,067)
|
|
|
Provision for excess
and obsolete inventories
|
|
3,076
|
|
|
2,913
|
|
|
9,158
|
|
|
5,682
|
|
|
Restructuring
charges
|
|
6,170
|
|
|
5,847
|
|
|
35,500
|
|
|
25,372
|
|
|
Cash payments for
restructuring charges
|
|
(11,374)
|
|
|
(5,291)
|
|
|
(24,459)
|
|
|
(22,949)
|
|
|
Other operating
activities
|
|
(1,311)
|
|
|
6,929
|
|
|
(3,162)
|
|
|
8,894
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(30,287)
|
|
|
(17,667)
|
|
|
7,627
|
|
|
3,778
|
|
|
Inventory,
net
|
|
(11,542)
|
|
|
(13,275)
|
|
|
(27,550)
|
|
|
(55,584)
|
|
|
Current and other
assets
|
|
(9,428)
|
|
|
(6,146)
|
|
|
(5,945)
|
|
|
9,352
|
|
|
Accounts
payable
|
|
20,571
|
|
|
(1,482)
|
|
|
32,892
|
|
|
34,910
|
|
|
Accrued
liabilities
|
|
11,789
|
|
|
13,099
|
|
|
23,025
|
|
|
(31,694)
|
|
|
Income
taxes
|
|
(21,391)
|
|
|
8,427
|
|
|
(21,002)
|
|
|
26,260
|
|
|
Cash provided by
(used in) operating activities
|
|
$
|
(1,465)
|
|
|
$
|
25,217
|
|
|
$
|
40,257
|
|
|
$
|
33,566
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of
investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
170
|
|
|
Purchase of
investments
|
|
(130)
|
|
|
(155)
|
|
|
(238)
|
|
|
(806)
|
|
|
Capital
expenditures
|
|
(5,444)
|
|
|
(4,753)
|
|
|
(10,881)
|
|
|
(9,260)
|
|
|
Proceeds from sale of
property, plant, and equipment and assets
held for sale
|
|
—
|
|
|
2,142
|
|
|
1,900
|
|
|
2,142
|
|
|
Cash used for
investing activities
|
|
$
|
(5,574)
|
|
|
$
|
(2,766)
|
|
|
$
|
(9,219)
|
|
|
$
|
(7,754)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
Employees' tax
withheld and paid for restricted stock and restricted
stock units
|
|
(310)
|
|
|
(660)
|
|
|
(3,049)
|
|
|
(9,281)
|
|
|
Proceeds from
issuances under stock-based compensation plans
|
|
5,726
|
|
|
6,027
|
|
|
5,731
|
|
|
6,616
|
|
|
Proceeds from
revolving line of credit
|
|
—
|
|
|
—
|
|
|
50,000
|
|
|
—
|
|
|
Repayments of
revolving line of credit
|
|
—
|
|
|
—
|
|
|
(50,000)
|
|
|
—
|
|
|
Repayments of
long-term debt
|
|
(35,563)
|
|
|
(25,000)
|
|
|
(35,563)
|
|
|
(25,000)
|
|
|
Payment of cash
dividends
|
|
—
|
|
|
(5,982)
|
|
|
—
|
|
|
(11,922)
|
|
|
Cash used for
financing activities
|
|
$
|
(30,147)
|
|
|
$
|
(25,615)
|
|
|
$
|
(32,881)
|
|
|
$
|
(39,587)
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
1,321
|
|
|
(2,298)
|
|
|
1,865
|
|
|
(2,292)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(35,865)
|
|
|
(5,462)
|
|
|
22
|
|
|
(16,067)
|
|
|
Cash and cash
equivalents at beginning of period
|
|
249,766
|
|
|
191,904
|
|
|
213,879
|
|
|
202,509
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
213,901
|
|
|
$
|
186,442
|
|
|
$
|
213,901
|
|
|
$
|
186,442
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
|
|
September
26,
|
|
September
28,
|
|
September
26,
|
|
September
28,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
revenues
|
$
|
410,969
|
|
|
$
|
461,709
|
|
|
$
|
766,689
|
|
|
$
|
909,476
|
|
|
Deferred revenue
purchase accounting1
|
4,237
|
|
|
8,524
|
|
|
9,319
|
|
|
20,683
|
|
|
Non-GAAP Net
revenues
|
$
|
415,206
|
|
|
$
|
470,233
|
|
|
$
|
776,008
|
|
|
$
|
930,159
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross
profit
|
$
|
180,746
|
|
|
$
|
206,071
|
|
|
$
|
337,078
|
|
|
$
|
418,717
|
|
|
Purchase accounting
amortization2
|
17,176
|
|
|
30,716
|
|
|
35,414
|
|
|
60,716
|
|
|
Deferred revenue
purchase accounting1
|
4,237
|
|
|
8,524
|
|
|
9,319
|
|
|
20,683
|
|
|
Stock-based
compensation
|
742
|
|
|
997
|
|
|
1,575
|
|
|
1,975
|
|
|
Integration and
Rebranding costs
|
—
|
|
|
111
|
|
|
—
|
|
|
1,069
|
|
|
Non-GAAP Gross
profit
|
$
|
202,901
|
|
|
$
|
246,419
|
|
|
$
|
383,386
|
|
|
$
|
503,160
|
|
|
Non-GAAP Gross
profit %
|
48.9
|
%
|
|
52.4
|
%
|
|
49.4
|
%
|
|
54.1
|
%
|
|
|
|
|
|
|
|
|
|
|
GAAP Research,
development, and engineering
|
$
|
52,148
|
|
|
$
|
57,415
|
|
|
$
|
102,177
|
|
|
$
|
116,939
|
|
|
Other
adjustments
|
194
|
|
|
(542)
|
|
|
—
|
|
|
(542)
|
|
|
Integration and
Rebranding costs
|
—
|
|
|
(560)
|
|
|
—
|
|
|
(1,901)
|
|
|
Stock-based
compensation
|
(4,068)
|
|
|
(4,213)
|
|
|
(7,299)
|
|
|
(7,932)
|
|
|
Non-GAAP Research,
development, and engineering
|
$
|
48,274
|
|
|
$
|
52,100
|
|
|
$
|
94,878
|
|
|
$
|
106,564
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Selling,
general, and administrative
|
$
|
115,605
|
|
|
$
|
148,419
|
|
|
$
|
232,250
|
|
|
$
|
312,027
|
|
|
Purchase accounting
amortization2
|
(14,195)
|
|
|
(15,278)
|
|
|
(28,390)
|
|
|
(30,556)
|
|
|
Stock-based
compensation
|
(5,453)
|
|
|
(9,483)
|
|
|
(10,749)
|
|
|
(17,690)
|
|
|
Other
adjustments
|
(723)
|
|
|
—
|
|
|
(718)
|
|
|
—
|
|
|
Integration and
Rebranding costs
|
—
|
|
|
(10,658)
|
|
|
—
|
|
|
(34,249)
|
|
|
Non-GAAP Selling,
general, and administrative
|
$
|
95,234
|
|
|
$
|
113,000
|
|
|
$
|
192,393
|
|
|
$
|
229,532
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
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
|
|
Six Months
Ended
|
|
|
September
26,
|
|
September
28,
|
|
September
26,
|
|
September
28,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
expenses
|
$
|
173,923
|
|
|
$
|
211,681
|
|
|
$
|
387,488
|
|
|
$
|
453,176
|
|
|
Purchase accounting
amortization2
|
(14,195)
|
|
|
(15,278)
|
|
|
(28,390)
|
|
|
(30,556)
|
|
|
Stock-based
compensation
|
(9,521)
|
|
|
(13,696)
|
|
|
(18,048)
|
|
|
(25,622)
|
|
|
Restructuring and
other related charges
|
(6,170)
|
|
|
(5,847)
|
|
|
(35,500)
|
|
|
(25,372)
|
|
|
Integration and
Rebranding costs
|
—
|
|
|
(11,218)
|
|
|
—
|
|
|
(36,150)
|
|
|
Gain (loss), net from
litigation settlements
|
—
|
|
|
—
|
|
|
(17,564)
|
|
|
—
|
|
|
Other
adjustments
|
(529)
|
|
|
(542)
|
|
|
(715)
|
|
|
620
|
|
|
Non-GAAP Operating
expenses
|
$
|
143,508
|
|
|
$
|
165,100
|
|
|
$
|
287,271
|
|
|
$
|
336,096
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating income
(loss)
|
$
|
6,823
|
|
|
$
|
(5,610)
|
|
|
$
|
(50,410)
|
|
|
$
|
(34,459)
|
|
|
Purchase accounting
amortization2
|
31,371
|
|
|
45,994
|
|
|
63,804
|
|
|
91,272
|
|
|
Stock-based
compensation
|
10,263
|
|
|
14,693
|
|
|
19,623
|
|
|
27,597
|
|
|
Restructuring and
other related charges
|
6,170
|
|
|
5,847
|
|
|
35,500
|
|
|
25,372
|
|
|
Deferred revenue
purchase accounting1
|
4,237
|
|
|
8,524
|
|
|
9,319
|
|
|
20,683
|
|
|
Gain (loss), net from
litigation settlements
|
—
|
|
|
—
|
|
|
17,564
|
|
|
—
|
|
|
Integration and
Rebranding costs
|
—
|
|
|
11,329
|
|
|
—
|
|
|
37,219
|
|
|
Other
adjustments
|
529
|
|
|
542
|
|
|
715
|
|
|
(620)
|
|
|
Non-GAAP Operating
income
|
$
|
59,393
|
|
|
$
|
81,319
|
|
|
$
|
96,115
|
|
|
$
|
167,064
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
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
|
|
Six Months
Ended
|
|
|
September
26,
|
|
September
28,
|
|
September
26,
|
|
September
28,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
GAAP Net
loss
|
$
|
(13,405)
|
|
|
$
|
(25,910)
|
|
|
$
|
(88,420)
|
|
|
$
|
(70,781)
|
|
|
Purchase accounting
amortization2
|
31,371
|
|
|
45,994
|
|
|
63,804
|
|
|
91,272
|
|
|
Stock-based
compensation
|
10,263
|
|
|
14,693
|
|
|
19,623
|
|
|
27,597
|
|
|
Restructuring and
other related charges
|
6,170
|
|
|
5,847
|
|
|
35,500
|
|
|
25,372
|
|
|
Deferred revenue
purchase accounting1
|
4,237
|
|
|
8,524
|
|
|
9,319
|
|
|
20,683
|
|
|
(Gain) loss, net from
litigation settlements
|
—
|
|
|
—
|
|
|
17,564
|
|
|
—
|
|
|
Integration and
Rebranding costs
|
—
|
|
|
11,329
|
|
|
—
|
|
|
37,219
|
|
|
Other
adjustments
|
(150)
|
|
|
542
|
|
|
44
|
|
|
(620)
|
|
|
Income tax effect of
above items
|
—
|
|
|
(12,511)
|
|
|
—
|
|
|
(27,994)
|
|
|
Income tax effect of
unusual tax items
|
(86)
|
|
|
498
|
|
|
(5,707)
|
|
3
|
(1,519)
|
|
|
Non-GAAP Net
income
|
$
|
38,400
|
|
|
$
|
49,006
|
|
|
$
|
51,727
|
|
|
$
|
101,229
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted earnings
per common share
|
$
|
(0.33)
|
|
|
$
|
(0.65)
|
|
|
$
|
(2.17)
|
|
|
$
|
(1.80)
|
|
|
Purchase accounting
amortization2
|
0.76
|
|
|
1.16
|
|
|
1.56
|
|
|
2.30
|
|
|
Stock-based
compensation
|
0.25
|
|
|
0.37
|
|
|
0.48
|
|
|
0.70
|
|
|
Restructuring and
other related charges
|
0.15
|
|
|
0.15
|
|
|
0.87
|
|
|
0.64
|
|
|
Deferred revenue
purchase accounting1
|
0.10
|
|
|
0.21
|
|
|
0.23
|
|
|
0.52
|
|
|
(Gain) loss, net from
litigation settlements
|
—
|
|
|
—
|
|
|
0.43
|
|
|
—
|
|
|
Integration and
Rebranding costs
|
—
|
|
|
0.29
|
|
|
—
|
|
|
0.93
|
|
|
Other
adjustments3
|
—
|
|
|
0.01
|
|
|
0.02
|
|
|
(0.02)
|
|
|
Income tax
effect
|
—
|
|
|
(0.32)
|
|
|
(0.15)
|
|
|
(0.75)
|
|
|
Effect of
anti-dilutive securities
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.03
|
|
|
Non-GAAP Diluted
earnings per common share
|
$
|
0.93
|
|
|
$
|
1.24
|
|
|
$
|
1.27
|
|
|
$
|
2.55
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
diluted earnings per common share calculation:
|
|
|
|
|
|
|
|
|
GAAP
|
40,970
|
|
|
39,584
|
|
|
40,715
|
|
|
39,411
|
|
|
Non-GAAP
|
41,312
|
|
|
39,664
|
|
|
40,890
|
|
|
39,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
Excluded amounts
represent amortization of intellectual property, impact of
valuation allowance, and the release of tax reserves.
|
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
|
|
|
|
September
28
|
|
December
28,
|
|
March
28,
|
|
June
27,
|
|
September
26,
|
|
September
26,
|
|
|
|
2019
|
|
2019
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
GAAP Net
loss
|
|
$
|
(25,910)
|
|
|
$
|
(78,483)
|
|
|
$
|
(662,820)
|
|
|
$
|
(75,015)
|
|
|
$
|
(13,405)
|
|
|
$
|
(829,723)
|
|
|
Tax
provision
|
|
(4,122)
|
|
|
(19,708)
|
|
|
(37,995)
|
|
|
(3,177)
|
|
|
3,013
|
|
|
(57,867)
|
|
|
Interest
Expense
|
|
23,797
|
|
|
22,533
|
|
|
22,378
|
|
|
21,184
|
|
|
18,581
|
|
|
84,676
|
|
|
Other Income and
Expense
|
|
625
|
|
|
(967)
|
|
|
562
|
|
|
(224)
|
|
|
(1,366)
|
|
|
(1,995)
|
|
|
Deferred revenue
purchase accounting1
|
|
8,524
|
|
|
7,131
|
|
|
6,138
|
|
|
5,082
|
|
|
4,237
|
|
|
22,588
|
|
|
Consumer
optimization3
|
|
—
|
|
|
10,415
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,415
|
|
|
Integration and
Rebranding costs
|
|
11,329
|
|
|
8,677
|
|
|
2,321
|
|
|
197
|
|
|
—
|
|
|
11,195
|
|
|
Stock-based
compensation
|
|
14,693
|
|
|
13,902
|
|
|
15,596
|
|
|
9,360
|
|
|
10,263
|
|
|
49,121
|
|
|
Restructuring and
other related charges
|
|
5,847
|
|
|
21,724
|
|
|
7,080
|
|
|
29,330
|
|
|
6,170
|
|
|
64,304
|
|
|
Impairment
charges
|
|
—
|
|
|
—
|
|
|
648,231
|
|
|
—
|
|
|
—
|
|
|
648,231
|
|
|
(Gain) loss, net from
litigation settlements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,561
|
|
|
—
|
|
|
17,561
|
|
|
Other
adjustments2
|
|
542
|
|
|
—
|
|
|
419
|
|
|
—
|
|
|
529
|
|
|
948
|
|
|
Depreciation and
amortization
|
|
57,376
|
|
|
57,556
|
|
|
57,632
|
|
|
43,400
|
|
|
40,971
|
|
|
199,559
|
|
|
Adjusted
EBITDA
|
|
$
|
92,701
|
|
|
$
|
42,780
|
|
|
$
|
59,542
|
|
|
$
|
47,698
|
|
|
$
|
68,993
|
|
|
$
|
219,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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.