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Press release content from PR Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from PR Newswire
Press release content from PR Newswire. The AP news staff was not involved in its creation.

Poly Announces Second Quarter Fiscal 2022 Financial Results

October 28, 2021 GMT
Poly Logo (PRNewsfoto/Poly)
Poly Logo (PRNewsfoto/Poly)
Poly Logo (PRNewsfoto/Poly)

SANTA CRUZ, Calif., Oct. 28, 2021 /PRNewswire/ -- Poly (NYSE: POLY), a global outfitter of professional-grade audio and video technology, today announced second quarter results for the period ended October 2, 2021.

Highlights for the second quarter include:

  • Demand environment remains intact as businesses worldwide prepare for a return to office by modernizing their communications infrastructure, reflected by year-over-year revenue growth in Voice of 36% and Video of 15%. Professional Headsets revenue declined 5% year-over-year but grew 8% sequentially.
  • Poly gained significant market share in its two primary video conferencing markets, with double-digit percentage point gains in each market on a year-over-year basis, according to third-party research.
  • Poly continues to innovate large-room meeting technology with the launch of the Studio X70 and E70 video solutions, using sophisticated AI and machine learning to enhance the user experience for everyone.
  • The Company announced the Poly Edge B-Series of Open SIP desktop phones, a stylish and reliable family of desk phones with Poly’s legendary audio quality at an affordable price.
  • Poly’s recently announced integration with AppSpace is expected to provide customers the ability to customize workplace communications and drive employee engagement with news, event updates, and information, all delivered on Poly devices during video downtime.
  • Talvis Love joins Poly’s board of directors and audit committee, effective September 28, 2021, bringing decades of expertise as a large-scale CIO with experience across multiple industries.

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“Poly continues to perform, nearly doubling share in our core video markets as businesses invest in modernizing their hybrid collaboration infrastructure,” said Dave Shull, Poly President and Chief Executive Officer. “From enterprise-grade video installations serving the largest conference rooms to adopting cloud-based phone platforms for every employee, our customers are working with us to plan, outfit, and upgrade all their communications capabilities.”

“Although global supply challenges persist, we are keenly focused on managing profitability while continuing to invest in areas of accelerating growth,” continued Chief Financial Officer Chuck Boynton. “Right now, we’re doing everything we can to manage volatile component supply and logistics in order to meet demand, and our ability to protect our margins speaks to the success of that effort.”

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($ Millions, except percent and per-share data)1

Q2 FY22

Q2 FY21


YTD FY22

YTD FY21

GAAP Revenue

$419

$411


$850

$767

GAAP Gross Margin

42.9%

44.0%


41.7%

44.0%

GAAP Operating Income (loss)

$10

$7


($10)

($50)

GAAP Diluted EPS

$2.21

($0.33)


$1.37

($2.17)

Cash Flow from Operations

($1)

($1)


$—

$40







Non-GAAP Revenue

$420

$415


$852

$776

Non-GAAP Gross Margin

47.2%

48.9%


46.0%

49.4%

Non-GAAP Operating Income

$53

$59


$105

$96

Non-GAAP Diluted EPS

$0.77

$0.93


$1.37

$1.27

Adjusted EBITDA

$62

$69


$123

$117


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 29, 2021 Guidance



Q2 FY22 Results

Q2 FY22 Guidance Range

GAAP Net Revenue

$419

$420M - $440M

Adjusted EBITDA

$62M

$50M - $60M

Non-GAAP Diluted EPS

$0.77

$0.50 - $0.70

Business Outlook

Global supply chain pressures, including both semiconductor chip shortages and transportation constraints, have impacted companies worldwide, and we expect we will continue to experience ongoing tightness and volatility in our supply chain, in turn compromising near-term visibility.

Given this environment, the Company has elected to provide full fiscal-year 2022 guidance rather than specific ranges for fiscal Q3. Based on current supply and expected availability of specific components, and assuming no incremental negative effects from COVID or its variants, the Company expects the following full-year results for fiscal 2022 (all amounts assume currency rates remain stable):

  • GAAP Net Revenue for Full Fiscal Year 2022 of $1.675B to $1.725B
  • Adjusted EBITDA1 for Full Fiscal Year 2022 of $220M to $240M
  • Non-GAAP Diluted EPS1,2 for Full Fiscal Year 2022 of $2.30 to $2.70

Based on expected availability of specific components, the Company expects fiscal Q4 revenue to be stronger than fiscal Q3.

1 Full-year FY22 Adjusted EBITDA and non-GAAP diluted EPS guidance excludes estimated intangibles amortization expense of $113.8 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 Non-GAAP diluted EPS guidance assumes approximately 44 million diluted average weighted shares and a non-GAAP effective tax rate of 7% to 9%.

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 2022 financial results. The webcast will take place today, October 28, 2021, 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.

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, our expectations that the virus has caused, and will continue to cause, a shift to a hybrid work environment and that the elevated demand we have experienced in certain product lines, including our Video and Voice devices, will continue over the long term; (ii) risks related to global supply chain disruptions, including continued uncertainty and potential impact on future quarters relating to a shortage of adequate component supply, including integrated circuits and manufacturing capacity, long lead times for raw materials and components, increased costs, increased purchase commitments and a delay in our ability to fulfill orders, which has had, and may continue to have, an adverse impact on our business and operating results and which could continue to negatively affect our profitability and/or market share; (iii) expectations related to our ability to manage profitability and maintain margins in light of supply chain challenges, while making investments for long-term growth, including investments in strategic alliances and/or acquisitions, in light of the supply chain challenges; (iv) our expectations regarding growth objectives related to our strategic initiatives designed to expand our product and service offerings, including our expectations related to building strategic alliances and key partnerships with providers of collaboration tools and platforms to drive revenue growth and market share; (v) our belief that we will continue to experience increased customer and partner demand in collaboration endpoints, and that we will be able to design new product offerings to meet changes in demand due to a global hybrid work environment; (vi) expectations related to our ability to fulfill the backlog generated by supply constraints and to timely supply the number of products to fulfill current and future customer demand in a timely manner to satisfy perishable demand; (vii) risks associated with our dependence on manufacturing operations conducted in our own facility in Tijuana, Mexico and through contract manufacturers, original design manufacturers, and suppliers to manufacture our products, to timely obtain sufficient quantities of materials and/or finished products of acceptable quality, at acceptable prices, and in the quantities necessary for us to meet critical schedules for the delivery of our own products and services and fulfill our anticipated customer demand; (viii) risks associated with our ability to secure critical components from sole source suppliers or identify alternative suppliers and/or buy component parts on the open market or completed goods in quantities sufficient to meet our requirements on a timely basis, affecting our ability to deliver products and services to our customers; (ix) risks related to increased cost of goods sold, including increased freight and other costs associated with expediting shipment and delivery of high-demand products to key markets in order to meet customer demand; (x) 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; (xi) risks associated with significant and/or abrupt changes in product demand which increases the complexity of management’s evaluation of potential excess or obsolete inventory; (xii) expectations related to our Services reportable segment revenues, particularly as we introduce next-generation, less complex, product solutions, or as companies shift from on premises to work from home options for their workforce, which have resulted and may continue to result in decreased demand for our professional, installation and/or managed service offerings; (xiii) expectations related to our efforts to drive sales and sustainable profitable revenue growth, to improve our profitability and cash flow, and accelerate debt reduction and de-levering; (xiv) risks associated with forecasting sales and procurement demands, which are inherently difficult, particularly with continuing uncertainty in regional and global economic conditions; (xv) 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; (xvi) expectations relating to our earnings guidance, particularly as economic uncertainty, including, without limitation, uncertainty related to the continued impact of COVID-19, the current constraints in our ability to source key components for our products, continued uncertainty in the macro-economic climate and other external factors, puts further pressure on management judgments used to develop forward-looking financial guidance and other prospective financial information; (xvii) expectations related to GAAP and non-GAAP financial results for the full Fiscal Year 2022, including net revenues, adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), tax rates, intangibles amortization, diluted weighted average shares outstanding and diluted earnings per share (EPS); (xviii) our forecast and estimates with respect to tax matters, including expectations with respect to the valuation of our intellectual property or expectations regarding utilization of our deferred tax assets; and (xix) our expectations regarding pending and potential future litigation, in addition to other matters discussed in this Annual Report on Form 10-K 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. Factors that could cause actual results and events to differ materially from such forward-looking statements are included, but not limited to, those discussed in the Company’s Quarterly Report on Form 10-Q for the period ended October 2, 2021 (“Quarterly Report”) and in Part I, “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended April 3, 2021, filed with the Securities and Exchange Commission (“SEC”) on May 18, 2021 (“Annual Report”) 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. Factors that could cause actual results and events to differ materially from such forward-looking statements are included, but not limited to, those discussed in the Quarterly Report and in the Annual Report; and other documents we have filed with the SEC. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

About Poly

Poly (NYSE: POLY) creates premium audio and video products so you can have your best meeting -- anywhere, anytime, every time. Our headsets, video and audio-conferencing products, desk phones, analytics software and services are beautifully designed and engineered to connect people with incredible clarity. They’re pro-grade, easy to use and work seamlessly with all the best video and audio-conferencing services. Poly MeetingAI delivers a broadcast quality video conferencing experience with Poly DirectorAI technology which uses artificial intelligence and machine learning to deliver real-time automatic transitions, framing and tracking, while NoiseBlockAI and Acoustic Fence technologies block-out unwanted background noise. With Poly (Plantronics, Inc. – formerly Plantronics and Polycom), you’ll do more than just show up, you’ll stand out. For more information visit www.Poly.com.

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

Vice President, Corporate Communications

(213) 369-3719

PLANTRONICS, INC.

SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except percentages and per share data)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS













Three Months Ended


Six Months Ended




October 2,


September 26,


October 2,


September 26,




2021


2020


2021


2020


Net revenues










Net product revenues


$

361,383


$

347,677


$

732,585


$

639,135


Net services revenues


57,641


63,292


117,611


127,554


Total net revenues


419,024


410,969


850,196


766,689


Cost of revenues










Cost of product revenues


220,169


209,261


455,365


385,876


Cost of service revenues


19,162


20,962


39,948


43,735


Total cost of revenues


239,331


230,223


495,313


429,611


Gross profit


179,693


180,746


354,883


337,078


% of total net revenues


42.9%


44.0%


41.7%


44.0%


Operating expenses










Research, development, and engineering


44,407


52,148


89,873


102,177


Selling, general, and administrative


122,297


115,605


243,031


232,250


Loss, net from litigation settlements





17,561


Restructuring and other related charges


2,607


6,170


31,579


35,500


Total operating expenses


169,311


173,923


364,483


387,488


Operating income (loss)


10,382


6,823


(9,600)


(50,410)


% of total net revenues


2.5%


1.7%


(1.1)%


(6.6)%












Interest expense


16,141


18,581


37,923


39,765


Other non-operating expense (income), net


23


(1,366)


(668)


(1,592)


Loss before income taxes


(5,782)


(10,392)


(46,855)


(88,583)


Income tax (benefit) expense


(102,567)


3,013


(106,829)


(163)


Net income (loss)


$

96,785


$

(13,405)


$

59,974


$

(88,420)


% of total net revenues


23.1%


(3.3)%


7.1%


(11.5)%












Basic earnings (loss) per common share


$

2.27


$

(0.33)


$

1.42


$

(2.17)


Diluted earnings (loss) per common share


$

2.21


$

(0.33)


$

1.37


$

(2.17)


Basic shares used in computing earnings (loss) per common share


42,543


40,970


42,302


40,715


Diluted shares used in computing earnings (loss) per common share


43,705


40,970


43,863


40,715












Effective tax rate


1,773.9%


(29.0)%


228.0%


0.2%













PLANTRONICS, INC.

SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS



October 2,


April 3,




2021


2021


ASSETS






Cash and cash equivalents


$

191,877



$

202,560



Restricted cash




493,908



Short-term investments


16,137



14,559



Total cash and cash equivalents, restricted cash, and short-term investments


208,014



711,027



Accounts receivable, net


249,491



267,464



Inventory, net


207,620



194,405



Other current assets


63,665



65,214



Total current assets


728,790



1,238,110



Property, plant, and equipment, net


128,347



140,875



Purchased intangibles, net


283,372



341,614



Goodwill


796,216



796,216



Deferred tax and other non-current assets


263,081



147,454



Total assets


$

2,199,806



$

2,664,269









LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)






Accounts payable


$

154,855



$

151,244



Accrued liabilities


331,813



394,084



Current portion of long-term debt




478,807



Total current liabilities


486,668



1,024,135



Long-term debt, net


1,498,173



1,496,064



Long-term income taxes payable


79,520



86,227



Other non-current liabilities


133,212



138,609



Total liabilities


2,197,573



2,745,035



Stockholders' equity (deficit)


2,233



(80,766)



Total liabilities and stockholders' equity (deficit)


$

2,199,806



$

2,664,269










PLANTRONICS, INC.

SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS













Three Months Ended


Six Months Ended




October 2,


September 26,


October 2,


September 26,




2021


2020


2021


2020


Cash flows from operating activities










Net income (loss)


$

96,785



$

(13,405)



$

59,974



$

(88,420)



Adjustments to reconcile net income (loss) to net cash provided by operating activities










Depreciation and amortization


36,292



40,971



76,125



84,371



Amortization of debt issuance cost


1,054



1,320



3,991



2,660



Stock-based compensation


11,573



10,263



21,989



19,618



Deferred income taxes


(105,224)



3,113



(111,167)



(4,056)



Provision for excess and obsolete inventories


1,594



3,076



6,904



9,158



Restructuring and other related charges


2,607



6,170



31,579



35,500



Cash payments for restructuring charges


(10,552)



(11,374)



(22,782)



(24,459)



Other operating activities


3,015



(1,311)



17



(3,162)



Changes in assets and liabilities










Accounts receivable, net


21,345



(30,287)



17,587



7,627



Inventory, net


(21,152)



(11,542)



(14,826)



(27,550)



Current and other assets


2,043



(9,428)



2,408



(5,945)



Accounts payable


(8,938)



20,571



3,577



32,892



Accrued liabilities


(21,391)



11,789



(62,022)



23,025



Income taxes


(10,097)



(21,391)



(13,551)



(21,002)



Net cash (used in) provided by operating activities


(1,046)



(1,465)



(197)



40,257













Cash flows from investing activities










Purchase of short-term investments


(171)



(130)



(575)



(238)



Capital expenditures


(6,745)



(5,444)



(12,797)



(10,881)



Proceeds from sale of property and equipment








1,900



Other investing activities






(4,000)





Net cash used in investing activities


(6,916)



(5,574)



(17,372)



(9,219)













Cash flows from financing activities










Employees' tax withheld and paid for restricted stock and restricted stock units


(1,085)



(310)



(11,310)



(3,049)



Proceeds from issuances under stock-based compensation plans


5,832



5,726



5,841



5,731



Proceeds from revolving line of credit








50,000



Repayments of revolving line of credit








(50,000)



Repayments of long-term debt




(35,563)



(480,689)



(35,563)



Net cash provided by (used in) financing activities


4,747



(30,147)



(486,158)



(32,881)



Effect of exchange rate changes on cash, cash equivalents and restricted cash


(1,669)



1,321



(864)



1,865



Net (decrease) increase in cash, cash equivalents, and restricted cash


(4,884)



(35,865)



(504,591)



22



Cash, cash equivalents, and restricted cash at beginning of period


196,761



249,766



696,468



213,879



Cash, cash equivalents, and restricted cash at end of period


$

191,877



$

213,901



$

191,877



$

213,901













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 certain non-cash transactions and activities that are not reflective of our ongoing core operations, as further described below. We believe the use of each of these non-GAAP measures provides meaningful supplemental information in assessing our operating performance and liquidity across reporting periods on a consistent basis and are used by management in evaluating financial performance and in strategic planning. These non-GAAP measures may differ from those used by other companies and are not intended to be considered in isolation of, or as a substitute for, financial results prepared in accordance with GAAP. Certain prior year amounts have been reclassified for consistency with current year presentation.

Non-GAAP Adjustments

  • Purchase accounting amortization: Represents the amortization of purchased intangible assets recorded in connection with the acquisition of Polycom on July 2, 2018.
  • 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 Services 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 guidance.
  • Stock compensation expense: Represents the non-cash expense associated with the Company’s grant of stock-based awards to employees and non-employee directors.
  • Restructuring and other related charges: Represents costs associated with restructuring plans and reorganization actions aimed at improving the Company’s overall cost structure, realigning resources consistent with its global strategy, and reducing expenses to enable strategic investments in revenue growth. These costs are not reflective of ongoing operations and are primarily associated with reductions in the Company’s workforce, facility related charges due to the closure or consolidation of offices, and other related costs, including legal and advisory services.
  • Deferred compensation mark to market: Represents gains and losses driven by the remeasurement of assets and liabilities associated with the Company’s deferred compensation plans. Gains and losses on plan liabilities are recognized within operating expenses, while the offsetting gains and losses on plan assets are recognized within other non-operating expense (income), net.
  • Loss, net on litigation settlements: The Company may be involved in various litigation, claims and proceedings that result in payments or recoveries from such proceedings. The related gains and losses incurred are excluded as they are not reflective of ongoing operations.
  • Income tax effects: Represents the tax effects of non-GAAP adjustments and other adjustments, depending on the nature of the underlying items. The exclusion of the above-mentioned items eliminates the effect of certain non-recurring and unusual tax items that do not necessarily reflect the Company’s long-term operations. The income tax effects for unusual tax items primarily represents the impact of the discrete tax benefit associated with the IP transfer between wholly-owned subsidiaries and the full valuation allowance on United States federal and state deferred tax assets.


PLANTRONICS, INC.

UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(in thousands, except percentages)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA











Three Months Ended


Six Months Ended



October 2,


September 26,


October 2,


September 26,



2021


2020


2021


2020











GAAP Net revenues

$

419,024



$

410,969



$

850,196



$

766,689



Deferred revenue purchase accounting

1,054



4,237



2,314



9,319



Non-GAAP Net revenues

$

420,078



$

415,206



$

852,510



$

776,008












GAAP Gross profit

$

179,693



$

180,746



$

354,883



$

337,078



Purchase accounting amortization

16,238



17,176



32,477



35,414



Deferred revenue purchase accounting

1,054



4,237



2,314



9,319



Stock-based compensation

1,160



742



2,286



1,575



Non-GAAP Gross profit

$

198,145



$

202,901



$

391,960



$

383,386



Non-GAAP Gross profit %

47.2%



48.9%



46.0%



49.4%












GAAP Research, development, and engineering

$

44,407



$

52,148



$

89,873



$

102,177



Stock-based compensation

(1,832)



(4,068)



(3,840)



(7,493)



Other adjustments



194





194



Non-GAAP Research, development, and engineering

$

42,575



$

48,274



$

86,033



$

94,878












GAAP Selling, general, and administrative

$

122,297



$

115,605



$

243,031



$

232,250



Purchase accounting amortization

(11,569)



(14,195)



(25,765)



(28,390)



Stock-based compensation

(8,592)



(5,453)



(15,874)



(10,749)



Deferred compensation mark to market

(13)



(714)



(1,006)



(714)



Other adjustments

387



(9)



387



(4)



Non-GAAP Selling, general, and administrative

$

102,510



$

95,234



$

200,773



$

192,393












PLANTRONICS, INC.

UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(in thousands)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (CONTINUED)











Three Months Ended


Six Months Ended



October 2,


September 26,


October 2,


September 26,



2021


2020


2021


2020











GAAP Operating expenses

$

169,311



$

173,923



$

364,483



$

387,488



Purchase accounting amortization

(11,569)



(14,195)



(25,765)



(28,390)



Stock-based compensation

(10,424)



(9,521)



(19,714)



(18,048)



Restructuring and other related charges

(2,607)



(6,170)



(31,579)



(35,500)



Deferred compensation mark to market

(13)



(714)



(1,006)



(714)



Loss, net from litigation settlements







(17,561)



Other adjustments

387



185



387



(4)



Non-GAAP Operating expenses

$

145,085



$

143,508



$

286,806



$

287,271












GAAP Operating income (loss)

$

10,382



$

6,823



$

(9,600)



$

(50,410)



Purchase accounting amortization

27,807



31,371



58,242



63,804



Stock-based compensation

11,584



10,263



22,000



19,623



Restructuring and other related charges

2,607



6,170



31,579



35,500



Deferred revenue purchase accounting

1,054



4,237



2,314



9,319



Deferred compensation mark to market

13



714



1,006



714



Loss, net from litigation settlements







17,561



Other adjustments

(387)



(185)



(387)



4



Non-GAAP Operating income

$

53,060



$

59,393



$

105,154



$

96,115













PLANTRONICS, INC.

UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(in thousands, except per share data)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (CONTINUED)











Three Months Ended


Six Months Ended



October 2,


September 26,


October 2,


September 26,



2021


2020


2021


2020


GAAP Net income (loss)

$

96,785



$

(13,405)



$

59,974



$

(88,420)



Purchase accounting amortization

27,807



31,371



58,242



63,804



Stock-based compensation

11,584



10,263



22,000



19,623



Restructuring and other related charges

2,607



6,170



31,579



35,500



Deferred revenue purchase accounting

1,054



4,237



2,314



9,319



Deferred compensation mark to market

1





4





Loss, net from litigation settlements







17,561



Other adjustments

(387)



(150)



(387)



47



Income tax effect of above items

7,922





2,541





Income tax effect of unusual tax items

(113,849)



(86)



(116,226)



(5,707)



Non-GAAP Net income

$

33,524



$

38,400



$

60,041



$

51,727












GAAP Diluted earnings (loss) per common share

$

2.21



$

(0.33)



$

1.37



$

(2.17)



Purchase accounting amortization

0.64



0.76



1.33



1.56



Stock-based compensation

0.27



0.25



0.50



0.48



Restructuring and other related charges

0.06



0.15



0.72



0.87



Deferred revenue purchase accounting

0.02



0.10



0.05



0.23



Loss, net from litigation settlements







0.43



Other adjustments

(0.01)





(0.01)



0.02



Income tax effect

(2.42)





(2.59)



(0.15)



Non-GAAP Diluted earnings per common share

$

0.77



$

0.93



$

1.37



$

1.27












Shares used in diluted earnings (loss) per common share calculation:









GAAP

43,705



40,970



43,863



40,715



Non-GAAP

43,705



41,312



43,863



40,890













PLANTRONICS, INC.

UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(in thousands)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (CONTINUED)














Three Months Ended


Twelve Months Ended




September 26,


December 26,


April 3,


July 3,


October 2,


October 2,




2020


2020


2021


2021


2021


2021


GAAP Net (loss) income


$

(13,405)



$

20,113



$

10,977



$

(36,811)



$

96,785



$

91,064



Income tax expense (benefit)


3,013



(7,045)



(341)



(4,262)



(102,567)



(114,215)



Interest expense


18,581



18,417



24,424



21,782



16,141



80,764



Other non-operating (income) expense, net


(1,366)



(2,596)



(920)



(692)



23



(4,185)



Deferred revenue purchase accounting


4,237



3,289



1,796



1,260



1,054



7,399



Stock-based compensation


10,263



11,486



11,540



10,416



11,584



45,026



Restructuring and other related charges


6,170



13,977



(773)



28,972



2,607



44,783



Deferred compensation mark to market


714



1,632



917



994



13



3,556



Other adjustments


(185)





(2,103)





(387)



(2,490)



Depreciation and amortization


40,971



40,510



39,986



39,833



36,292



156,621



Adjusted EBITDA


$

68,993



$

99,783



$

85,503



$

61,492



$

61,545



$

308,323

















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SOURCE Plantronics, Inc. (“Poly” - formerly Plantronics and Polycom)