Plantronics beats own estimates, announces new cloud service

PLTheadsetSanta Cruz Sentinel

SANTA CRUZ—Santa Cruz headset maker Plantronics posted better than expected numbers for the first quarter of fiscal year 2015 Tuesday with record revenues up 7 percent and earnings per share up 11 percent from a year ago in the same quarter.

“Fundamentals in the unified communications market remain solid,” said CEO and President Ken Kannappan, who spoke to analysts on a webcast conference call after the company released its report. Several analysts congratulated the executives on a strong quarter.

Even before the numbers were released at the close of the stock market Tuesday, company shares had climbed more than $1.22 to close at $47.89.

The company saw 17 percent growth in its unified communications sales as more companies transfer employee communication systems to a unified platform.

“We continue to make great strategic progress,” Kannappan said.

He said unified communications revenue should overtake unified communications investment in just a few years.

The company also saw strong growth in its consumer business with gains in the mono and stereo Bluetooth market share.

“We remain confident of market growth over the next few years as more large enterprises move to deploy voice as part of their UC implementation,” Kannappan said.

In other company business, executives announced a new online service to help companies manage their Plantronics products.

Pam Strayer, the company’s chief financial officer, said she was “very pleased” with strengthened gross margins. “Our focus on continuous improvement in all areas of the business has resulted in lower costs of good sold through a variety of efforts.”

Plantronics Inc.

WHAT: A publicly held audio communications headset manufacturer for businesses and consumers.

HEADQUARTERS: 345 Encinal St., Santa Cruz, CA 95060.

BACKGROUND: Founded in 1961, Plantronics introduced the first lightweight communications headset in 1962.

LEADERSHIP: Ken Kannappan, president and chief executive officer.

EMPLOYEES: As of March, the company employed about 3,400 people worldwide, including about 550 in Santa Cruz.

INFORMATION: 831-426-5858;

STOCK PRICE: Shares trading on the NYSE under the ticker PLT closed Tuesday at $47.89 up $1.22 cents. The 52-week range is $41.14–$49.87.

FINANCIALS: First quarter 2014 net revenues were $216.6 million, compared to $202.2 million a year ago. Net income was $28.7 million, or 68 cents per diluted share, compared to $26.5 million, or 62 cents per diluted share, a year ago. The company finished the quarter with $328.4 million in cash and investments.

DIVIDEND: The company also announced a quarterly dividend of 15 cents per share to be paid Sept. 10 to all shareholders of record on Aug. 20.

GUIDANCE: For the second quarter of fiscal 2015, the company expects net revenues of $210 million to $220 million and diluted earnings per share of 60-68 cents.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s