Poly Announces First Quarter Fiscal Year 2021 Financial Results
SANTA CRUZ, Calif., July 28, 2020 /PRNewswire/ -- Plantronics, Inc. (NYSE: PLT) ("Poly" or the "Company") today announced first quarter results for the period ending June 27, 2020. Preliminary highlights of the first quarter include the following:
($ Millions, except percent
and per-share data)(1) Q1 FY21 Q1 FY20
GAAP Revenue $356 $448
GAAP Gross Margin 43.9 47.5
% %
GAAP Operating Loss ($57) ($29)
GAAP Diluted EPS ($1.85) ($1.14)
Cash Flow from Operations $42 $8
Non-GAAP Revenue $361 $460
Non-GAAP Gross Margin 50.0 55.8
% %
Non-GAAP Operating Income $37 $86
Non-GAAP Diluted EPS $0.33 $1.32
Adjusted EBITDA $48 $98
(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.
"We are working aggressively to fulfill elevated headset demand driven by the hybrid working trend as we navigate product shifts and supply chain challenges," said Robert Hagerty, Chairman of the Poly Board of Directors and Interim Chief Executive Officer. "We continue to make progress on the transformation necessary to achieve the objectives of the integrated company and return to profitable growth."
Results Compared to May 27, 2020 Guidance
Q1 FY21 Results Q1 FY21 Guidance Range(2)
GAAP
Net
Revenue
$356M
$330M - $365M
Non-
GAAP
Net
Revenue
$361M
$335M - $370M
Adjusted
EBITDA
$48M
$25M - $45M
Non-
GAAP
Diluted
EPS $0.33
$(0.18) - $0.22
(2) The non-GAAP revenue
guidance range shown here
excludes the $5.1 million
impact of purchase
accounting related to
recording deferred revenue
at fair value at the time of
the acquisition.
"In light of the current macroeconomic uncertainty, we have been accumulating cash to maximize financial flexibility and liquidity," said Charles Boynton, Executive Vice President and Chief Financial Officer. "As our business and the economy stabilize, our capital allocation strategy will focus on reducing leverage while maintaining appropriate liquidity."
Highlights for the First Quarter 2021
-- Headsets demand remained elevated and voice solutions challenged as
customers continue to work from home. Backlog at quarter-end was
approximately five weeks.
-- The Company's in-house manufacturing site in Tijuana, Mexico resumed
production in early May after reconfiguring to implement specific safety
protocols. The factory is capable of running at full capacity, but
supply constraints continue to affect production.
-- Poly announced a new family of Microsoft Teams Rooms (MTR) solutions and
completed the Teams certification of the Studio X30 and X50 video bars.
Poly also received Teams re-certification on six headsets for a total of
16 certified Teams headsets, and now offers the largest number of Teams
certified endpoints in the market.
-- Poly's next-gen video solutions, including the Studio X30, Studio X50,
and G7500 became the first certified Zoom appliances in the market. In
addition, the company announced participation in Zoom's
Hardware-as-a-Service offering featuring Poly video bars and phones.
-- LogMeIn announced that the Poly Studio X30 and X50 video bars are now
available in bundled solutions for GoToRoom.
-- The Company resolved several longstanding litigation matters, which will
reduce Legal expenses going forward.
-- The Company ended fiscal Q1 with $263 million in cash and short-term
investments.
Dividend Suspended
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 second quarter 2021 (all amounts assume currency rates remain stable):
Q2 FY21 Guidance
GAAP Net Revenue
$346M - $386M
Non-GAAP Revenue
$350M - $390M
Adjusted EBITDA(1)
$45M - $65M
Non-GAAP Diluted EPS1,2
$0.25 - $0.65
(1) Q2 Adjusted EBITDA and non-GAAP
diluted EPS guidance excludes
estimated intangibles amortization
expense of $31.4 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, 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 15% to 17%.
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 first quarter fiscal year 2021 financial results. The webcast will take place today, July 28, 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 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, which negatively impacted our sales during the quarter; 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, (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 home workforce, (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 uncertainties related to the continued impact of COVID-19; (d) expectations related to our ability to fulfill the backlog generated by supply constraints during the quarter, 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, and (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 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; (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, 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 first 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.
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
June 27, June 29,
2020 2019
Net revenues:
Net product revenues $
291,458 $
382,745
Net services revenues 64,262 65,022
Total net revenues 355,720 447,767
Cost of revenues:
Cost of product revenues 176,615 208,616
Cost of service revenues 22,773 26,505
Total cost of revenues 199,388 235,121
Gross profit 156,332 212,646
Gross profit % 43.9 47.5
%
%
Operating expenses:
Research, development, and
engineering 50,029 59,524
Selling, general, and
administrative 116,644 163,608
Impairment of goodwill and
long-lived assets
(Gain) loss, net from
litigation settlements 17,561 (1,162)
Restructuring and other related
charges 29,330 19,525
Total operating expenses 213,564 241,495
Operating loss (57,232) (28,849)
Operating loss % (16.1) (6.4)
%
%
Interest expense (21,184) (23,932)
Other non-operating income,
net 224 333
Income before income taxes (78,192) (52,448)
Income tax benefit (3,177) (7,577)
Net loss $
(75,015) $
(44,871)
% of net revenues (21.1) (10.0)
%
%
Loss per common share:
Basic $
(1.85) $
(1.14)
Diluted $
(1.85) $
(1.14)
Shares used in computing
earnings per common share:
Basic 40,460 39,239
Diluted 40,460 39,239
Effective tax rate 4.1 14.4
%
%
---
PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
($ in thousands)
UNAUDITED CONSOLIDATED BALANCE SHEETS
June 27, March 28,
2020 2020
ASSETS
Cash and cash equivalents $
249,766 $
213,879
Short-term investments 13,166 11,841
Total cash, cash equivalents, and short-
term investments 262,932 225,720
Accounts receivable, net 208,688 246,835
Inventory, net 177,633 164,527
Other current assets 46,145 47,946
Total current assets 695,398 685,028
Property, plant, and equipment, net 159,539 165,858
Purchased intangibles, net 434,481 466,915
Goodwill 796,216 796,216
Deferred tax and other assets 143,248 143,157
Total assets $
2,228,882 $
2,257,174
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $
115,166 $
102,159
Accrued liabilities 396,745 373,666
Total current liabilities 511,911 475,825
Long-term debt, net of issuance costs 1,623,034 1,621,694
Long-term income taxes payable 98,949 98,319
Other long-term liabilities 144,699 144,152
Total liabilities 2,378,593 2,339,990
Stockholders' equity (149,711) (82,816)
Total liabilities and stockholders'
equity $
2,228,882 $
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
June 27, June 29,
2020 2019
Cash flows from operating
activities
Net Loss $
(75,015) $
(44,871)
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 43,400 57,698
Amortization of debt issuance cost 1,340 1,361
Stock-based compensation 9,355 12,904
Impairment of goodwill and long-
lived assets
Deferred income taxes (7,169) (29,410)
Provision for excess and obsolete
inventories 6,082 2,769
Restructuring charges 29,330 19,525
Cash payments for restructuring
charges (13,085) (17,658)
Other operating activities (1,851) 1,965
Changes in assets and liabilities:
Accounts receivable, net 37,914 21,445
Inventory, net (16,008) (42,309)
Current and other assets 3,483 15,498
Accounts payable 12,321 36,392
Accrued liabilities 11,236 (44,793)
Income taxes 389 17,833
Cash provided by operating
activities $
41,722 $
8,349
Cash flows from investing
activities
Proceeds from sale of investments 170
Purchase of investments (108) (651)
Capital expenditures (5,437) (4,507)
Proceeds from sale of property,
plant, and equipment and assets
held for sale 1,900
Cash used for investing activities $
(3,645) $
(4,988)
Cash flows from financing
activities
Employees' tax withheld and paid
for restricted stock and
restricted stock units (2,739) (8,621)
Proceeds from issuances under
stock-based compensation plans 5 589
Proceeds from revolving line of
credit 50,000
Repayments of revolving line of
credit (50,000)
Payment of cash dividends (5,940)
Cash used for financing activities $
(2,734) $
(13,972)
Effect of exchange rate changes on
cash and cash equivalents 544 6
Net increase (decrease) in cash and
cash equivalents 35,887 (10,605)
Cash and cash equivalents at
beginning of period 213,879 202,509
Cash and cash equivalents at end of
period $
249,766 $
191,904
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
June 27, June 29,
2020 2019
GAAP Net revenues $
355,720 $
447,767
Deferred revenue purchase
accounting(1) 5,082 12,159
Non-GAAP Net revenues $
360,802 $
459,926
GAAP Gross profit $
156,332 $
212,646
Purchase accounting
amortization(2) 18,238 30,000
Deferred revenue purchase
accounting(1) 5,082 12,159
Integration and
Rebranding costs - 958
Stock-based compensation 833 978
Non-GAAP Gross profit $
180,485 $
256,741
Non-GAAP Gross profit % 50.0 55.8
%
%
GAAP Research,
development, and
engineering $
50,029 $
59,524
Stock-based compensation (3,231) (3,719)
Integration and
Rebranding costs (194) (1,341)
Non-GAAP Research,
development, and
engineering $
46,604 $
54,464
GAAP Selling, general,
and administrative $
116,644 $
163,608
Integration and
Rebranding costs 6 (23,591)
Purchase accounting
amortization(2) (14,195) (15,278)
Stock-based compensation (5,296) (8,207)
Non-GAAP Selling,
general, and
administrative $
97,159 $
116,532
(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
June 27, June 29,
2020 2019
GAAP Operating
expenses $
213,564 $
241,495
Integration and
Rebranding costs (188) (24,932)
Purchase accounting
amortization(2) (14,195) (15,278)
Stock-based
compensation (8,527) (11,926)
Restructuring and
other related charges (29,330) (19,525)
Gain (loss), net from
litigation
settlements (17,561) 1,162
Non-GAAP Operating
expenses $
143,763 $
170,996
GAAP Operating loss $
(57,232) $
(28,849)
Purchase accounting
amortization(2) 32,433 45,278
Deferred revenue
purchase
accounting(1) 5,082 12,159
Integration and
Rebranding costs 188 25,890
Stock-based
compensation 9,360 12,904
Restructuring and
other related charges 29,330 19,525
(Gain) loss, net from
litigation
settlements 17,561 (1,162)
Non-GAAP Operating
income $
36,722 $
85,745
(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
June 27, June 29,
2020 2019
GAAP Net loss $
(75,015) $
(44,871)
Purchase accounting
amortization(2) 32,433 45,278
Deferred revenue
purchase
accounting(1) 5,082 12,159
Integration and
Rebranding costs 196 25,890
Stock-based
compensation 9,360 12,904
Restructuring and
other related charges 29,330 19,525
(Gain) loss, net from
litigation
settlements 17,561 (1,162)
Income tax effect of
above items (13,347) (15,483)
Income tax effect of
unusual tax items 7,728 (3) (2,017)
Non-GAAP Net income $
13,328 $
52,223
GAAP Diluted earnings
per common share $
(1.85) $
(1.14)
Purchase accounting
amortization(2) 0.80 1.15
Deferred revenue
purchase
accounting(1) 0.13 0.31
Stock-based
compensation 0.23 0.33
Integration and
Rebranding costs - 0.66
Restructuring and
other related charges 0.72 0.49
(Gain) loss, net from
litigation
settlements 0.43 (0.03)
Income tax effect (0.13) (0.46)
Effect of anti-
dilutive securities - 0.01
Non-GAAP Diluted
earnings per common
share $
0.33 $
1.32
Shares used in diluted earnings per
common share calculation:
GAAP 40,460 39,239
Non-GAAP 40,620 39,523
---
(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
June 29, September 28, December 28, March 28, June 27, June 27,
2019 2019 2019 2020 2020 2020
GAAP Net loss $
(44,871) $
(25,910) $
(78,483) $
(662,820) $
(75,015) $
(842,228)
Tax provision (7,576) (4,122) (19,708) (37,995) (3,177) (65,002)
Interest Expense 23,932 23,797 22,533 22,378 21,184 89,892
Other Income and Expense (333) 625 (967) 562 (224) (4)
Deferred revenue purchase
accounting(1) 12,159 8,524 7,131 6,138 5,082 26,875
Consumer optimization(3) 10,415 10,415
Integration and Rebranding
costs 25,890 11,329 8,677 2,321 197 22,524
Stock-based compensation 12,904 14,693 13,902 15,596 9,360 53,551
Restructuring and other related
charges 19,525 5,847 21,724 7,080 29,330 63,981
Impairment charges 648,231 648,231
(Gain) loss, net from
litigation settlements (1,162) 419 17,561 17,980
Other adjustments(2) 542 542
Depreciation and amortization 57,698 57,376 57,556 57,632 43,400 215,964
Adjusted EBITDA $
98,166 $
92,701 $
42,780 $
59,542 $
47,698 $
242,721
(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.
View original content to download multimedia:http://www.prnewswire.com/news-releases/poly-announces-first-quarter-fiscal-year-2021-financial-results-301101558.html
SOURCE Plantronics, Inc.
