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Strong Quarterly Cash Flow from Operations, Office Wireless Grew 28%
compared with Q4 FY06
SANTA CRUZ, Calif., May 1 /PRNewswire-FirstCall/ -- Plantronics, Inc.,
(NYSE: PLT) today announced fourth quarter net revenues of $194.7 million
compared with $206.7 million in the fourth quarter of fiscal 2006. Revenues
were at the midpoint of previously provided guidance of $190 to $200
million. Plantronics' GAAP diluted earnings per share were $0.21 for the
fourth quarter compared with $0.43 in the fourth quarter of fiscal 2006.
Non-GAAP diluted earnings per share were $0.28 and exceeded the range of
guidance the Company provided on January 22, 2007 which was $0.22 to $0.27.
The difference between GAAP and non-GAAP earnings per share is primarily
the cost of equity-based compensation.
Net revenues for the fiscal year ended March 2007 were $800.2 million,
an increase of 7% compared with $750.4 million for the fiscal year ended
March 2006. GAAP diluted earnings per share were $1.04 for the fiscal year
ended March 2007 compared with $1.66 in the prior fiscal year. Non-GAAP
diluted earnings per share were $1.26 for the fiscal year ended March 2007
compared with $1.66 in the prior fiscal year.
"We are entering fiscal 2008 in a stronger strategic position than we
entered fiscal 2007. We have a rich product portfolio slated to launch this
year. Our marketing programs appear to be working as evidenced by the
resumed growth in our office wireless products which grew 28% compared to
Q4 last year. Additionally, our Bluetooth products for mobile are being
well received given our growth of over 60% in fiscal 2007 compared to the
prior fiscal year," stated Ken Kannappan, President & CEO of Plantronics.
"We are also well positioned for the convergence of voice and music.
Altec is not performing well financially which is primarily the result of a
current product portfolio that isn't sufficiently competitive. However, we
are confident in our ability to improve the Altec portfolio and ultimately
be very competitive."
Audio Communications Group (ACG) Non-GAAP Results
(Office & Contact Center, Mobile, Computer, Clarity)
Fourth quarter net revenues of $173.2 million were up 2.5% compared
with $169 million in the year ago quarter. Revenue growth compared to the
year ago quarter was driven by demand for wireless headsets, both for
office applications and for mobile Bluetooth devices. Our OCC corded
business was essentially flat compared to the fourth quarter a year ago.
This growth was partially offset by declines in sales of corded mobile,
computer and Clarity products.
Office wireless products were up 28% compared to the fourth quarter a
year ago and 16% sequentially. After several quarters of relatively flat
sequential results, growth resumed in Q3 and continued in Q4, bringing the
fiscal year growth in this important category to 36% compared to fiscal
2006.
Gross margin in Q4 FY07 was 45.1% compared with 43.1% in the year ago
quarter. Among the factors driving gross margin higher from Q4 FY06 were
the positive impact of cost reduction on our Bluetooth mobile and office
wireless products, and our improved product portfolio in Bluetooth mobile.
Operating margin in Q4 FY07 was 14.5% compared with 14.3% in the year ago
quarter due to the higher gross margin. The increase in gross margin was
partially offset by higher sales and marketing expenses.
Audio Entertainment Group (AEG) Non-GAAP Results
(Altec Lansing)
Fourth quarter net revenues of $21.5 million were down 43% from $37.8
million in the year ago quarter. Our product portfolio has not been
sufficiently competitive which has resulted in lost market share and
profitability. This is the key factor affecting revenue as well as gross
margin. While some new products, such as the iM600, have begun shipping and
are being well received, the portfolio as a whole needs to be substantially
refreshed. The portable product line has faced the most severe competition
and declined the most, while the powered line has held up reasonably well
from a revenue standpoint.
Gross margin in Q4 FY07 was -5.4% compared with 32.6% in the year ago
quarter. Cost reductions over the year have been very limited while net
realizable prices for AEG products have continued to decline. These factors
account for approximately 24 points of the decline in gross margin. With
lower volumes, fixed costs are a higher percent of revenue and account for
approximately 8 points of the decline. Provision for excess and obsolete
inventory, while not substantially higher than in the fourth quarter a year
ago in dollars, amounted to 3 points of the decline given the lower revenue
base on which it was recorded. In the fourth quarter of fiscal 2007, we
also classified within Cost of Goods sold certain expenses that were
classified as G&A expenses in the year ago quarter to conform to the ACG
presentation. While the dollar cost of these G&A expenses was approximately
$400k, it resulted in 2 points of decline compared to the year ago quarter.
Non-GAAP operating loss was $10.5 million in the quarter compared to
operating income of $1.7 million in the same quarter of the prior year. The
non-GAAP measure excludes the impact of stock option expense of $0.3
million.
Sequentially, net revenues declined from $38.9 million to $21.5
million, which was larger than the seasonal impact previously expected. The
lower volume contributed to the decline in gross margin. For example, fixed
costs were flat sequentially but as a percent of revenue were up
approximately 8 points sequentially. The reclassification of certain G&A
expenses mentioned above contributed to a 2 point sequential decline.
Product mix was less favorable and net realized prices slipped further,
more than offsetting the benefit of no maker's claims in Q4. The above
factors were the primary reasons for the sequential decline in non-GAAP
gross margin.
We have a multi-year plan to refresh and expand our Altec Lansing
branded products, expand distribution and implement operational
improvements to increase revenue and return to profitability.
Business Outlook
The following statements are based on current expectations. Many of
these statements are forward-looking, and actual results may differ
materially.
We have a "book and ship" business model whereby we ship most orders to
our customers within 48 hours of our receipt of those orders, and we thus
cannot rely on the level of backlog to provide visibility into potential
future revenues. Our business is inherently difficult to forecast and there
can be no assurance that the incoming orders we expect to receive over the
balance of the quarter will materialize.
Subject to the foregoing, we are currently expecting the following
financial results for the first quarter of fiscal 2008:
-- Net revenues for the first quarter of fiscal 2008 to be in the range of
$205 - $210 million;
-- Non-GAAP consolidated tax rate to be in the range of 24-25%;
-- The EPS cost of equity compensation pursuant to FAS 123(R) to be
approximately $0.06;
-- Non-GAAP earnings per share for the first quarter of fiscal 2008 to be
in the range of $0.26 - $0.29; and
-- GAAP earnings per share of approximately $0.20 to $0.23.
Longer-term Business Model
During fiscal 2007, the Company achieved a non-GAAP operating margin of
9.1% compared with an operating margin target range of 15-20%. The target
non-GAAP operating margin range for ACG is 18-20% and for AEG is 5-10%. In
FY08, we expect to improve operating margin in ACG above the 14.6% achieved
in FY07 but not reach the target range. In AEG, for the first half of
fiscal 2008, we expect to incur losses of similar magnitude to that of the
fourth quarter just ended, with smaller losses in the second half of fiscal
2008. While we continue to believe that the right long-term target model is
5-10% for consumer audio businesses such as AEG, we do not expect to be
within that range for FY09. We are aiming to achieve that range for the
second half of FY09 on the anticipated strength of products planned for
that selling window. By FY10, we currently believe we can get within the
target range for the fiscal year taken as a whole.
The key drivers for the Company to achieve the longer-term business
model include volume growth particularly as it relates to AEG, improved
product margins, higher utilization of our manufacturing facilities, lower
transformation costs, effective supply chain re-engineering and the
utilization of common product platforms.
Plantronics does not intend to update these targets during the quarter
or to report on its progress toward these targets. Plantronics will not
comment on these targets to analysts or investors except by its next press
release announcing its first quarter fiscal year 2008 results or by other
public disclosure. Any statements by persons outside Plantronics
speculating on the progress of the first quarter of the fiscal year will
not be based on internal Company information and should be assessed
accordingly by investors. The statements do not reflect the potential
impact of any mergers or acquisitions that may be completed after the date
of this release.
Conference Call Scheduled to Discuss Financial Results
Plantronics has scheduled a conference call to discuss the contents of
this release. The conference call will take place today, Tuesday, May 1 at
2:00 PM (PDT). All interested investors and potential investors in
Plantronics stock are invited to participate. To listen to the call, please
dial in five to ten minutes prior to the scheduled starting time and refer
to the "Plantronics Conference Call." Participants from North America
should call (888) 301-8736 and other participants should call (706)
634-7260.
A replay of the call with the conference ID #2591305 will be available
for 72 hours at (800) 642-1687 for callers from North America and at (706)
645- 9291 for all other callers. The conference call will also be
simultaneously web cast at http://www.plantronics.com under Investor Relations,
and the web cast of the conference call will remain available at the
Plantronics Web site for thirty days.
Use of Non-GAAP Financial Information
We are reporting GAAP versus non-GAAP for equity-based compensation
expense for the fourth quarter and year-to-date, and to isolate the
earnings per share impact of an impairment charge relating to certain
acquired intangible assets (Q4 FY07) and a non-recurring real estate
transaction (completed in Q1 FY07) in fourth quarter and year-to-date
results. In the fourth quarter, the difference between GAAP and non-GAAP
earnings per share is the after-tax cost of equity-based compensation which
was approximately $2.8 million or $0.06 per share and an impairment charge
of approximately $500,000 after-tax or $0.01 per share relating to certain
intangible assets recorded in connection with the acquisition of Octiv in
fiscal 2006.
We believe this is appropriate to enhance an overall understanding of
our comparative financial performance and our prospects for the future.
We also believe that our estimates of expense and the earnings per
share impact from equity compensation pursuant to FAS 123(R) are subject to
a number of risks and uncertainties which we had not faced prior to the
first fiscal quarter of 2007, including our estimates of the forfeiture
rate, the impact on diluted shares outstanding pursuant to the Treasury
Stock method, and the tax rate which will apply to the pre-tax expense.
Therefore, we are also estimating earnings per share for the first quarter
of fiscal 2008 on a GAAP and non-GAAP basis.
SAFE HARBOR
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Exchange Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Specific forward-
looking statements include our prospects for growth and the resumption of a
long term trend toward wireless in the office, estimates of net revenues,
margins, operating expenses, tax rate and earnings for the first quarter of
fiscal 2008 and our belief that AEG will make financial progress on the
strength of a product refresh cycle by December with a goal of approaching
the range of their target operating model in the second half of fiscal
2009. These forward-looking statements involve a number of risks and
uncertainties, and are based on current information and management
judgment.
Among the factors that could cause actual results to differ materially
from those projected are:
-- Our operating results are difficult to predict;
-- We have significant intangible assets and goodwill recorded on our
balance sheet. If the carrying value of our intangible assets and
goodwill is not recoverable, an impairment loss must be recognized
which would adversely affect our financial results. We have completed
our preliminary review of the intangible assets and goodwill remaining
on our books from the Altec Lansing acquisition, and based on that
preliminary review, do not believe these balances are impaired.
However, if our assessment of our prospects for FY08, the recovery plan
and the long-term business model were to change in a negative
direction, we may need to recognize an impairment loss;
-- The market for our products is characterized by rapidly changing
technology, short product life cycles, and frequent new product
introductions, and we may not be able to develop, manufacture or market
new products in response to changing customer requirements and new
technologies;
-- The actions of existing and/or new competitors, especially with regard
to pricing and promotional programs;
-- Product mix is difficult to estimate and standard margin varies
considerably by product;
-- Failure to match production to demand given long lead times and the
difficulty of forecasting unit volumes and acquiring the component
parts to meet demand without having excess inventory or incurring
cancellation charges;
-- The inability to successfully develop, manufacture and market new
products and achieve volume shipment schedules to meet demand;
-- A softening of the level of market demand for our products;
-- Variations in sales and profits in higher tax, as compared to lower
tax, jurisdictions;
-- Fluctuations in foreign exchange rates;
-- Class action lawsuits are being brought against us and other Bluetooth
headset manufacturers claiming "noise induced hearing loss". While we
believe these suits are without merit, the costs to defend against them
could be high and the results of litigation are not predictable in any
event;
-- Changes in the regulatory environment either as to headsets directly or
as to the products, such as mobile phones, with which our products are
used;
-- Additional risk factors include: changes in the timing and size of
orders from our customers, price erosion, increased requirements from
retail customers for marketing and advertising funding, interruption in
the supply of sole-sourced critical components, continuity of component
supply at costs consistent with our plans, failure of our distribution
channels to operate as we expect, failure to develop products that keep
pace with technological changes, the inherent risks of our substantial
foreign operations, problems which might affect our manufacturing
facilities in Mexico or in China, and the loss of the services of key
executives and employees.
For more information concerning these and other possible risks, please
refer to the Company's Annual Report on Form 10-K filed June 5, 2006,
quarterly reports filed on Form 10-Q and other filings with the Securities
and Exchange Commission as well as recent press releases. These filings can
be accessed over the Internet at
http://www.sec.gov/edgar/searchedgar/companysearch.html
Financial Summaries
The following related charts are provided:
-- Summary Unaudited Condensed Consolidated Financial Statements
-- Summary Unaudited Condensed Statements of Operations by Segment
-- Unaudited GAAP to Non-GAAP Statements of Operations Reconciliation for
Plantronics, Inc.
-- Unaudited GAAP to Non-GAAP Statements of Operations Reconciliations by
Segment
-- Summary Unaudited Statements of Operations and Related Data
About Plantronics
In 1969, a Plantronics headset carried the historic first words from
the moon: "That's one small step for man, one giant leap for mankind."
Since then, Plantronics has become the headset of choice for
mission-critical applications such as air traffic control, 911 dispatch,
and the New York Stock Exchange. Today, this history of Sound
Innovation(TM) is the basis for every product we build for the office,
contact center, personal mobile, entertainment and residential markets. The
Plantronics family of brands includes Plantronics, Altec Lansing, Clarity,
and Volume Logic. For more information, go to http://www.plantronics.com or call
(800) 544-4660.
NOTE: Altec Lansing, Clarity, Plantronics, Sound Innovation, and Volume
Logic are trademarks or registered trademarks of Plantronics, Inc. All
other trademarks are the property of their respective owners.
FOR INFORMATION, CONTACT:
Greg Klaben
Vice President, Investor Relations
(831) 458-7533
PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share data)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
March 31, March 31, March 31, March 31,
2006 2007 2006 2007
Net revenues $206,748 $194,716 $750,394 $800,154
Cost of revenues 121,671 118,446 424,140 490,539
Impairment of intangible
asset - 800 - 800
Gross profit 85,077 75,470 326,254 308,815
Gross profit % 41.2% 38.8% 43.5% 38.6%
Research, development and
engineering 16,930 18,462 62,798 71,895
Selling, general and
administrative 42,249 47,524 153,094 182,108
Gain on sale of land - - - (2,637)
Total operating expenses 59,179 65,986 215,892 251,366
Operating income 25,898 9,484 110,362 57,449
Operating income % 12.5% 4.9% 14.7% 7.2%
Interest and other income
(expense), net 1,525 1,344 2,192 4,089
Income before income taxes 27,423 10,828 112,554 61,538
Income tax expense 6,719 691 31,404 11,395
Net income $20,704 $10,137 $81,150 $50,143
% of net revenues 10.0% 5.2% 10.8% 6.3%
Diluted earnings per common
share $0.43 $0.21 $1.66 $1.04
Shares used in diluted per
share calculations 48,637 48,218 48,788 48,020
Tax rate 24.5% 6.4% 27.9% 18.5%
UNAUDITED CONSOLIDATED BALANCE SHEETS
March 31, March 31,
2006 2007
ASSETS
Cash and cash equivalents $68,703 $94,131
Short-term investments 8,029 9,234
Total cash, cash equivalents, and
short-term investments 76,732 103,365
Accounts receivable, net 118,008 113,758
Inventory 105,882 126,605
Deferred income taxes 12,409 12,659
Other current assets 15,318 18,474
Total current assets 328,349 374,861
Property, plant and equipment, net 93,874 97,259
Intangibles, net 109,208 100,120
Goodwill 75,077 72,825
Other assets 5,741 6,239
$612,249 $651,304
LIABILITIES AND STOCKHOLDERS' EQUITY
Line of credit $22,043 $-
Accounts payable 48,574 49,956
Accrued liabilities 43,081 54,025
Income taxes payable 13,231 12,476
Total current liabilities 126,929 116,457
Deferred tax liability 48,246 37,344
Long-term liability 1,453 696
Total liabilities 176,628 154,497
Stockholders' equity 435,621 496,807
$612,249 $651,304
AUDIO COMMUNICATIONS GROUP
SUMMARY CONDENSED FINANCIAL STATEMENTS
(in thousands)
UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
March 31, March 31, March 31, March 31,
2006 2007 2006 2007
Net revenues $168,997 $173,233 $629,725 $676,514
Cost of revenues 96,220 95,789 340,437 380,234
Impairment of intangible asset - 800 - 800
Gross profit 72,777 76,644 289,288 295,480
Gross profit % 43.1% 44.2% 45.9% 43.7%
Research, development and
engineering 14,697 15,886 56,570 61,583
Selling, general and
administrative 33,898 40,517 132,867 151,857
Gain on sale of land - - - (2,637)
Total operating expenses 48,595 56,403 189,437 210,803
Operating income $24,182 $20,241 $99,851 $84,677
Operating income % 14.3% 11.7% 15.9% 12.5%
AUDIO ENTERTAINMENT GROUP
SUMMARY CONDENSED FINANCIAL STATEMENTS
(in thousands)
UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
March 31, March 31, March 31, March 31,
2006 2007 2006 2007
Net sales $37,751 $21,483 $120,669 $123,640
Cost of revenues 25,451 22,657 83,703 110,305
Gross profit (loss) 12,300 (1,174) 36,966 13,335
Gross profit (loss) % 32.6% -5.5% 30.6% 10.8%
Research, development and
engineering 2,233 2,576 6,228 10,312
Selling, general and
administrative 8,351 7,007 20,227 30,251
Total operating expenses 10,584 9,583 26,455 40,563
Operating income (loss) $1,716 $(10,757) $10,511 $(27,228)
Operating income (loss) % 4.5% -50.1% 8.7% -22.0%
PLANTRONICS, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
March 31, 2007 March 31, 2007
Excluded Excluded
GAAP (1)(2) Non-GAAP GAAP (1)(2)(3) Non-GAAP
Net revenues $194,716 $- $194,716 $800,154 $- $800,154
Cost of revenues 118,446 (708) 117,738 490,539 (2,908) 487,631
Impairment of
intangible asset 800 (800) - 800 (800) -
Gross profit 75,470 1,508 76,978 308,815 3,708 312,523
Gross profit % 38.8% 39.5% 38.6% 39.1%
Research, development
and engineering 18,462 (992) 17,470 71,895 (3,835) 68,060
Selling, general and
administrative 47,524 (2,613) 44,911 182,108 (10,176) 171,932
Gain on sale of land - - - (2,637) 2,637 -
Total operating
expenses 65,986 (3,605) 62,381 251,366 (11,374) 239,992
Operating income 9,484 5,113 14,597 57,449 15,082 72,531
Operating income % 4.9% 7.5% 7.2% 9.1%
Interest and other
income (expense), net 1,344 - 1,344 4,089 - 4,089
Income before income
taxes 10,828 5,113 15,941 61,538 15,082 76,620
Income tax expense 691 1,816 2,507 11,395 4,901 16,296
Net income $10,137 $3,297 $13,434 $50,143 $10,181 $60,324
% of net revenues 5.2% 6.9% 6.3% 7.5%
Diluted earnings per
common share $0.21 $0.07 $0.28 $1.04 $0.21 $1.26
Shares used in
diluted per share
calculations 48,218 48,218 48,218 48,020 48,020 48,020
AUDIO COMMUNICATIONS GROUP
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands)
UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
March 31, 2007 March 31, 2007
Excluded Excluded
GAAP (1)(2) Non-GAAP GAAP (1)(2)(3) Non-GAAP
Net revenues $173,233 $- $173,233 $676,514 $-$676,514
Cost of revenues 95,789 (689) 95,100 380,234 (2,856) 377,378
Impairment of
intangible asset 800 (800) - 800 (800) -
Gross profit 76,644 1,489 78,133 295,480 3,656 299,136
Gross profit % 44.2% 45.1% 43.7% 44.2%
Research, development
and engineering 15,886 (959) 14,927 61,583 (3,735) 57,848
Selling, general and
administrative 40,517 (2,398) 38,119 151,857 (9,500) 142,357
Gain on sale of land - (2,637) 2,637 -
Total operating
expenses 56,403 (3,357) 53,046 210,803 (10,598) 200,205
Operating income $20,241 $4,846 $25,087 $84,677 $14,254 $98,931
Operating income % 11.7% 14.5% 12.5% 14.6%
AUDIO ENTERTAINMENT GROUP
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands)
UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
March 31, 2007 March 31, 2007
Excluded Excluded
GAAP (1) Non-GAAP GAAP (1) Non-GAAP
Net revenues $21,483 $- $21,483 $123,640 $- $123,640
Cost of revenues 22,657 (19) 22,638 110,305 (52) 110,253
Gross profit (loss) (1,174) 19 (1,155) 13,335 52 13,387
Gross profit (loss) % -5.5% -5.4% 10.8% 10.8%
Research, development
and engineering 2,576 (33) 2,543 10,312 (100) 10,212
Selling, general and
administrative 7,007 (215) 6,792 30,251 (676) 29,575
Total operating
expenses 9,583 (248) 9,335 40,563 (776) 39,787
Operating income
(loss) $(10,757) $267 $(10,490) $(27,228) $828 $(26,400)
Operating income
(loss) % -50.1% -48.8% -22.0% -21.4%
(1) Excludes stock-based compensation.
(2) Excludes impairment of intangible asset.
(3) Excludes gained on sale of land.
Use of Non-GAAP Financial Information
To supplement our consolidated financial statements presented on a GAAP
basis, Plantronics uses non-GAAP measures of operating results, which are
adjusted to exclude the impact of all stock-based compensation charges
under FAS 123(R), the gain on sale of land and impairment of intangible
assets, which Plantronics considers non-recurring transactions. At the
segment level, we have presented non-GAAP statements that only show our
results to the operating income line. On a consolidated basis, we have
presented full non- GAAP statement of operations. The non-GAAP financial
measures should not be considered a substitute for, or superior to,
financial measures calculated in accordance with GAAP, and the financial
results calculated in accordance with GAAP and the reconciliations to those
financial statements should be carefully evaluated. The non-GAAP financial
measures used by the company may be calculated differently from, and
therefore may not be comparable to, similarly titled measures used by other
companies.
Summary of Unaudited Statements of
Operations and Related Data
Q106 Q206 (1) Q306 (1)
Net revenues $148,909 $172,225 $222,512
Cost of revenues 75,760 98,223 128,486
Gross profit 73,149 74,002 94,026
Gross profit % 49.1% 43.0% 42.3%
Research, development and engineering 13,766 16,122 15,980
Selling, general and administrative 29,892 37,823 43,130
Operating expenses 43,658 53,945 59,110
Operating income 29,491 20,057 34,916
Operating income % 19.8% 11.6% 15.7%
Income before income taxes 29,723 21,088 34,320
Income tax expense 8,025 7,381 9,279
Income tax expense as a percent
of income before taxes 27.0% 35.0% 27.0%
Net income 21,698 13,707 25,041
Diluted shares outstanding 49,335 49,007 48,165
EPS $0.44 $0.28 $0.52
Net revenues from unaffiliated customers:
Audio Communication Group
Office and Contact center 105,425 107,475 114,290
Mobile 26,868 26,682 29,973
Gaming and Computer 9,344 8,906 9,419
Other specialty products 7,272 7,237 7,837
Audio Entertainment Group -- 21,925 60,993
Net revenues by geographic area
from unaffiliated customers:
Domestic 96,685 113,431 139,033
International 52,224 58,794 83,479
Balance Sheet accounts and metrics:
Accounts receivable, net 88,576 115,078 126,169
Days sales outstanding 54 60 51
Inventory, net 56,441 99,167 106,573
Inventory turns 5.4 4.0 4.8
Q107 (1),
Q406 (1) FY06 (1) (2),(3)
Net revenues $206,748 $750,394 $195,069
Cost of revenues 121,671 424,140 118,681
Gross profit 85,077 326,254 76,388
Gross profit % 41.2% 43.5% 39.2%
Research, development and engineering 16,930 62,798 17,633
Selling, general and administrative 42,249 153,094 41,832
Operating expenses 59,179 215,892 59,465
Operating income 25,898 110,362 16,923
Operating income % 12.5% 14.7% 8.7%
Income before income taxes 27,423 112,554 17,908
Income tax expense 6,719 31,404 4,261
Income tax expense as a percent
of income before taxes 24.5% 27.9% 23.8%
Net income 20,704 81,150 13,647
Diluted shares outstanding 48,637 48,788 48,268
EPS $0.43 $1.66 $0.28
Net revenues from unaffiliated customers:
Audio Communication Group
Office and Contact center 119,334 446,524 114,267
Mobile 35,810 119,333 35,806
Gaming and Computer 7,987 35,656 7,289
Other specialty products 5,866 28,212 6,375
Audio Entertainment Group 37,751 120,669 31,332
Net revenues by geographic area
from unaffiliated customers:
Domestic 136,253 485,402 126,900
International 70,495 264,992 68,169
Balance Sheet accounts and metrics:
Accounts receivable, net 118,008 118,008 121,702
Days sales outstanding 51 56
Inventory, net 105,882 105,882 135,979
Inventory turns 4.6 3.5
Q207 (1), Q307 (1), Q407 (1), FY07 (1),
(2),(3) (2),(3) (2) (2)
Net revenues $194,934 $215,435 $194,716 $800,154
Cost of revenues 117,357 133,855 117,738 487,631
Gross profit 77,577 81,580 76,978 312,523
Gross profit % 39.8% 37.9% 39.5% 39.1%
Research, development
and engineering 16,055 16,902 17,470 68,060
Selling, general and
administrative 41,570 43,619 44,911 171,932
Operating expenses 57,625 60,521 62,381 239,992
Operating income 19,952 21,059 14,597 72,531
Operating income % 10.2% 9.8% 7.5% 9.1%
Income before income
taxes 20,219 22,552 15,941 76,620
Income tax expense 5,049 4,479 2,507 16,296
Income tax expense as a
percent of income before
taxes 25.0% 19.9% 15.7% 21.3%
Net income 15,170 18,073 13,434 60,324
Diluted shares
outstanding 47,626 47,922 48,218 48,020
EPS $0.32 $0.38 $0.28 $1.26
Net revenues from
unaffiliated customers:
Audio Communication Group
Office and Contact
center 115,813 118,280 126,964 475,324
Mobile 33,199 43,080 34,774 146,859
Gaming and Computer 7,727 8,364 6,782 30,162
Other specialty products 6,294 6,787 4,713 24,169
Audio Entertainment Group 31,900 38,924 21,483 123,640
Net revenues by geographic
area from unaffiliated
customers:
Domestic 122,782 126,178 115,846 491,706
International 72,152 89,257 78,870 308,448
Balance Sheet accounts
and metrics:
Accounts receivable, net 118,646 131,735 103,365 103,365
Days sales outstanding 55 55 53
Inventory, net 139,426 134,263 113,758 113,758
Inventory turns 3.4 4.0 3.8
(1) Includes Altec Lansing since the acquisition on August 18, 2005
(2) Non-GAAP
(3) Certain reclassifications have been made to prior period reported
amounts to conform to the current period presentation.
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