Plantronics sales beat guidance

Santa Cruz Sentinel

SANTA CRUZ — Although revenues for fiscal 2010 dropped overall compared with the prior year, Plantronics announced better-than-expected sales in some categories, which boosted fourth quarter and year-end earnings.

“Fiscal 2010 was a transformational year for Plantronics,” said Ken Kannappan, chief executive officer and president. “We strengthened our cost structure to face economic conditions early in the year and focused our resources on the single largest opportunity in the company’s nearly 50-year history: unified communications.”

Net revenues for fiscal year 2010 were $613.8 million compared with $674.6 million in fiscal 2009. Earnings per diluted share from continuing operations for fiscal 2010 were $1.85 compared to $1.26 in fiscal year 2009.

During a conference call Tuesday with investors and analysts, Kannappan said “exciting” new products were in the pipeline. He reiterated optimism that the company’s long-term prospects for revenue and earnings growth continue to be “brighter than ever,” and said there are “high levels in enterprise interest in unified communications along with strong strategic alliances with unified communications vendors and system integrators.” Fiscal year 2011 will bring revenue and profit growth, he said.

“The economic environment has been improving and we’ve been participating well in the recovery with our office and contact center business up 31 percent from last March and 9 percent sequentially,” said Barbara Scherer, chief financial officer. “However, it is still down 15 percent from peak quarterly levels in the first half of 2008.”

Although sales were largely down from the third fiscal quarter, fourth quarter sales climbed in the office and contact center, mobile headset category and the gaming and computer audio categories compared to a year ago.

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Plantronics Stats

WHAT: A publicly held headset manufacturer
HEADQUARTERS: 345 Encinal St., Santa Cruz
BEMPLOYEES: The company employs about 3,100 people. About 475 people work in Santa Cruz
INFORMATION: 426-5858; http://www.plantronics.com
STOCK PRICE: Shares trading on the NYSE under the ticker PLT were down $1.62 Tuesday to close at $32.37. The 52-week range is $12.59-$34.49.
FINANCIALS: Fourth quarter 2010 net income was $24.58 million, or 50 cents per diluted share, compared to a loss or $11.03 million, or a loss of 23 cents per diluted share a year ago in the same quarter. Net revenues were $162.28 million compared with 128.1 million a year ago.
For fiscal 2010, net income was $57.74 million, or $1.19 diluted earnings per share, compared to a net loss of $64.9 million or a loss of $1.34 per diluted share for fiscal 2009. Revenues for the fiscal year were $613.8 million compared with $674.6 million
The company also reported record cash, cash equivalents and short-term investments of $369.19 million compared to $218.18 million for fiscal 2009.

Published in the Santa Cruz Sentinel HERE

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