We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Plantronics Inc | NYSE:PLT | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 31.87 | 0 | 01:00:00 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
77-0207692
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
S
|
Accelerated filer
£
|
Non-accelerated filer
£
|
Smaller reporting company
£
|
|
|
(Do not check if a smaller reporting company)
|
|
PART I. FINANCIAL INFORMATION
|
Page No.
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows
for the Six Months Ended September 30, 2013 and 2012
|
|
|
|
|
|
|
|
|
|
|
|
PART II. OTHER INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2013 |
|
March 31,
2013 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
245,980
|
|
|
$
|
228,776
|
|
Short-term investments
|
113,143
|
|
|
116,581
|
|
||
Accounts receivable, net
|
123,748
|
|
|
128,209
|
|
||
Inventory, net
|
69,150
|
|
|
67,435
|
|
||
Deferred tax assets
|
10,065
|
|
|
10,120
|
|
||
Other current assets
|
15,289
|
|
|
15,369
|
|
||
Total current assets
|
577,375
|
|
|
566,490
|
|
||
Long-term investments
|
79,475
|
|
|
80,261
|
|
||
Property, plant, and equipment, net
|
118,318
|
|
|
99,111
|
|
||
Goodwill and purchased intangibles, net
|
16,265
|
|
|
16,440
|
|
||
Other assets
|
2,240
|
|
|
2,303
|
|
||
Total assets
|
$
|
793,673
|
|
|
$
|
764,605
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
29,500
|
|
|
$
|
37,067
|
|
Accrued liabilities
|
60,926
|
|
|
66,419
|
|
||
Total current liabilities
|
90,426
|
|
|
103,486
|
|
||
Deferred tax liabilities
|
2,833
|
|
|
1,742
|
|
||
Long-term income taxes payable
|
12,685
|
|
|
12,005
|
|
||
Other long-term liabilities
|
1,686
|
|
|
925
|
|
||
Total liabilities
|
107,630
|
|
|
118,158
|
|
||
Commitments and contingencies (Note 7)
|
|
|
|
|
|
||
Stockholders' equity:
|
|
|
|
|
|
||
Common stock
|
769
|
|
|
757
|
|
||
Additional paid-in capital
|
645,169
|
|
|
612,283
|
|
||
Accumulated other comprehensive income
|
1,858
|
|
|
5,567
|
|
||
Retained earnings
|
69,670
|
|
|
28,344
|
|
||
Total stockholders' equity before treasury stock
|
717,466
|
|
|
646,951
|
|
||
Less: Treasury stock, at cost
|
(31,423
|
)
|
|
(504
|
)
|
||
Total stockholders' equity
|
686,043
|
|
|
646,447
|
|
||
Total liabilities and stockholders' equity
|
$
|
793,673
|
|
|
$
|
764,605
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net revenues
|
$
|
193,980
|
|
|
$
|
179,280
|
|
|
$
|
396,798
|
|
|
$
|
360,645
|
|
Cost of revenues
|
94,366
|
|
|
82,052
|
|
|
191,552
|
|
|
165,721
|
|
||||
Gross profit
|
99,614
|
|
|
97,228
|
|
|
205,246
|
|
|
194,924
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research, development, and engineering
|
20,447
|
|
|
19,581
|
|
|
41,310
|
|
|
39,277
|
|
||||
Selling, general, and administrative
|
48,507
|
|
|
43,130
|
|
|
96,604
|
|
|
89,034
|
|
||||
Restructuring and other related charges
|
(176
|
)
|
|
—
|
|
|
547
|
|
|
—
|
|
||||
Total operating expenses
|
68,778
|
|
|
62,711
|
|
|
138,461
|
|
|
128,311
|
|
||||
Operating income
|
30,836
|
|
|
34,517
|
|
|
66,785
|
|
|
66,613
|
|
||||
Interest and other income (expense), net
|
359
|
|
|
275
|
|
|
(127
|
)
|
|
287
|
|
||||
Income before income taxes
|
31,195
|
|
|
34,792
|
|
|
66,658
|
|
|
66,900
|
|
||||
Income tax expense
|
8,057
|
|
|
8,868
|
|
|
16,567
|
|
|
17,413
|
|
||||
Net income
|
$
|
23,138
|
|
|
$
|
25,924
|
|
|
$
|
50,091
|
|
|
$
|
49,487
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.54
|
|
|
$
|
0.62
|
|
|
$
|
1.17
|
|
|
$
|
1.19
|
|
Diluted
|
$
|
0.53
|
|
|
$
|
0.61
|
|
|
$
|
1.15
|
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
|
||||||||
Shares used in computing earnings per common share:
|
|
|
|
|
|
|
|||||||||
Basic
|
42,810
|
|
|
41,482
|
|
|
42,751
|
|
|
41,571
|
|
||||
Diluted
|
43,597
|
|
|
42,403
|
|
|
43,667
|
|
|
42,521
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash dividends declared per common share
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net income
|
$
|
23,138
|
|
|
$
|
25,924
|
|
|
$
|
50,091
|
|
|
$
|
49,487
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
311
|
|
|
217
|
|
|
(41
|
)
|
|
(119
|
)
|
||||
Unrealized gains (losses) on cash flow hedges:
|
|
|
|
|
|
|
|
||||||||
Unrealized cash flow hedge gains (losses) arising during the period
|
(1,949
|
)
|
|
(632
|
)
|
|
(3,576
|
)
|
|
1,534
|
|
||||
Net (gains) losses reclassified into income for revenue hedges
|
128
|
|
|
(1,158
|
)
|
|
144
|
|
|
(3,019
|
)
|
||||
Net (gains) losses reclassified into income for cost of revenues hedges
|
26
|
|
|
93
|
|
|
(239
|
)
|
|
290
|
|
||||
Net unrealized losses on cash flow hedges
|
(1,795
|
)
|
|
(1,697
|
)
|
|
(3,671
|
)
|
|
(1,195
|
)
|
||||
Unrealized gains (losses) on investments:
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains during the period
|
164
|
|
|
46
|
|
|
6
|
|
|
58
|
|
||||
Other comprehensive (loss)
|
(1,320
|
)
|
|
$
|
(1,434
|
)
|
|
(3,706
|
)
|
|
$
|
(1,256
|
)
|
||
Comprehensive income
|
$
|
21,818
|
|
|
$
|
24,490
|
|
|
$
|
46,385
|
|
|
$
|
48,231
|
|
|
Six Months Ended
|
||||||
|
September 30,
|
||||||
|
2013
|
|
2012
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
50,091
|
|
|
$
|
49,487
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
7,891
|
|
|
7,880
|
|
||
Stock-based compensation
|
10,953
|
|
|
9,482
|
|
||
Provision for excess and obsolete inventories
|
3,281
|
|
|
899
|
|
||
Deferred income taxes
|
5,293
|
|
|
(902
|
)
|
||
Excess tax benefit from stock-based compensation
|
(4,086
|
)
|
|
(679
|
)
|
||
Other operating activities
|
1,200
|
|
|
1,265
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
|||
Accounts receivable, net
|
3,082
|
|
|
5,008
|
|
||
Inventory, net
|
(4,552
|
)
|
|
(8,230
|
)
|
||
Current and other assets
|
(659
|
)
|
|
(1,218
|
)
|
||
Accounts payable
|
(7,567
|
)
|
|
(3,854
|
)
|
||
Accrued liabilities
|
(3,885
|
)
|
|
(559
|
)
|
||
Income taxes
|
(3,436
|
)
|
|
1,445
|
|
||
Cash provided by operating activities
|
57,606
|
|
|
60,024
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|||
Proceeds from sales of short-term investments
|
50,118
|
|
|
25,057
|
|
||
Proceeds from maturities of short-term investments
|
54,970
|
|
|
60,890
|
|
||
Purchase of short-term investments
|
(41,634
|
)
|
|
(65,411
|
)
|
||
Proceeds from sales of long-term investments
|
15,012
|
|
|
2,000
|
|
||
Purchase of long-term investments
|
(74,720
|
)
|
|
(33,951
|
)
|
||
Acquisitions, net of cash acquired
|
—
|
|
|
(1,723
|
)
|
||
Capital expenditures
|
(27,213
|
)
|
|
(21,526
|
)
|
||
Cash used for investing activities
|
(23,467
|
)
|
|
(34,664
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|||
Repurchase of common stock
|
(27,313
|
)
|
|
(19,930
|
)
|
||
Proceeds from issuances under stock-based compensation plans
|
18,637
|
|
|
11,888
|
|
||
Employees' tax withheld and paid for restricted stock and restricted stock units
|
(4,369
|
)
|
|
(1,729
|
)
|
||
Proceeds from revolving line of credit
|
—
|
|
|
18,000
|
|
||
Repayments of revolving line of credit
|
—
|
|
|
(26,000
|
)
|
||
Payment of cash dividends
|
(8,765
|
)
|
|
(8,490
|
)
|
||
Excess tax benefit from stock-based compensation
|
4,086
|
|
|
679
|
|
||
Cash used for financing activities
|
(17,724
|
)
|
|
(25,582
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
789
|
|
|
(1,184
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
17,204
|
|
|
(1,406
|
)
|
||
Cash and cash equivalents at beginning of period
|
228,776
|
|
|
209,335
|
|
||
Cash and cash equivalents at end of period
|
$
|
245,980
|
|
|
$
|
207,929
|
|
SUPPLEMENTAL DISCLOSURES
|
|
|
|
||||
Transfers of long-term investments to short-term investments
|
$
|
60,424
|
|
|
$
|
48,574
|
|
(in thousands)
|
|
September 30, 2013
|
|
March 31, 2013
|
||||||||||||||||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash
|
|
$
|
236,372
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
236,372
|
|
|
$
|
118,881
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
118,881
|
|
Cash equivalents
|
|
9,607
|
|
|
1
|
|
|
—
|
|
|
9,608
|
|
|
109,895
|
|
|
—
|
|
|
—
|
|
|
109,895
|
|
||||||||
Total cash and cash equivalents
|
|
$
|
245,979
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
245,980
|
|
|
$
|
228,776
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
228,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Short-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury Bills and Government Agency Securities
|
|
$
|
56,964
|
|
|
$
|
33
|
|
|
$
|
(15
|
)
|
|
$
|
56,982
|
|
|
$
|
66,092
|
|
|
$
|
18
|
|
|
$
|
(3
|
)
|
|
$
|
66,107
|
|
Commercial paper
|
|
30,835
|
|
|
12
|
|
|
(1
|
)
|
|
30,846
|
|
|
15,670
|
|
|
9
|
|
|
—
|
|
|
15,679
|
|
||||||||
Corporate bonds
|
|
24,294
|
|
|
19
|
|
|
(1
|
)
|
|
24,312
|
|
|
34,766
|
|
|
31
|
|
|
(2
|
)
|
|
34,795
|
|
||||||||
Certificates of deposit ("CDs")
|
|
1,002
|
|
|
1
|
|
|
—
|
|
|
1,003
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total short-term investments
|
|
$
|
113,095
|
|
|
$
|
65
|
|
|
$
|
(17
|
)
|
|
$
|
113,143
|
|
|
$
|
116,528
|
|
|
$
|
58
|
|
|
$
|
(5
|
)
|
|
$
|
116,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Long-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury Bills and Government Agency Securities
|
|
$
|
15,473
|
|
|
$
|
18
|
|
|
$
|
(4
|
)
|
|
$
|
15,487
|
|
|
$
|
55,317
|
|
|
$
|
42
|
|
|
$
|
(1
|
)
|
|
$
|
55,358
|
|
Corporate bonds
|
|
63,926
|
|
|
85
|
|
|
(23
|
)
|
|
63,988
|
|
|
23,878
|
|
|
23
|
|
|
(3
|
)
|
|
23,898
|
|
||||||||
CDs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,002
|
|
|
3
|
|
|
—
|
|
|
1,005
|
|
||||||||
Total long-term investments
|
|
$
|
79,399
|
|
|
$
|
103
|
|
|
$
|
(27
|
)
|
|
$
|
79,475
|
|
|
$
|
80,197
|
|
|
$
|
68
|
|
|
$
|
(4
|
)
|
|
$
|
80,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total cash, cash equivalents and investments
|
|
$
|
438,473
|
|
|
$
|
169
|
|
|
$
|
(44
|
)
|
|
$
|
438,598
|
|
|
$
|
425,501
|
|
|
$
|
126
|
|
|
$
|
(9
|
)
|
|
$
|
425,618
|
|
(in thousands)
|
|
September 30, 2013
|
|
March 31, 2013
|
||||||||||||
|
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||
Due in 1 year or less
|
|
$
|
122,702
|
|
|
$
|
122,751
|
|
|
$
|
226,423
|
|
|
$
|
226,476
|
|
Due in 1 to 3 years
|
|
79,399
|
|
|
79,475
|
|
|
80,197
|
|
|
80,261
|
|
||||
Total
|
|
$
|
202,101
|
|
|
$
|
202,226
|
|
|
$
|
306,620
|
|
|
$
|
306,737
|
|
(in thousands)
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
||||||
Cash
|
|
$
|
236,372
|
|
|
$
|
—
|
|
|
$
|
236,372
|
|
Mutual funds
|
|
609
|
|
|
—
|
|
|
609
|
|
|||
Commercial paper
|
|
—
|
|
|
8,999
|
|
|
8,999
|
|
|||
Short-term investments:
|
|
|
|
|
|
|
||||||
Government Agency Securities
|
|
—
|
|
|
56,982
|
|
|
56,982
|
|
|||
Commercial paper
|
|
—
|
|
|
30,846
|
|
|
30,846
|
|
|||
Corporate bonds
|
|
—
|
|
|
24,312
|
|
|
24,312
|
|
|||
CDs
|
|
—
|
|
|
1,003
|
|
|
1,003
|
|
|||
Long-term investments:
|
|
|
|
|
|
|
||||||
Government Agency Securities
|
|
—
|
|
|
15,487
|
|
|
15,487
|
|
|||
Corporate bonds
|
|
—
|
|
|
63,988
|
|
|
63,988
|
|
|||
Other current assets:
|
|
|
|
|
|
|
||||||
Derivative assets
|
|
—
|
|
|
70
|
|
|
70
|
|
|||
Total assets measured at fair value
|
|
$
|
236,981
|
|
|
$
|
201,687
|
|
|
$
|
438,668
|
|
|
|
|
|
|
|
|
||||||
Accrued liabilities:
|
|
|
|
|
|
|
||||||
Derivative liabilities
|
|
$
|
8
|
|
|
$
|
2,435
|
|
|
$
|
2,443
|
|
(in thousands)
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
||||||
Cash
|
|
$
|
118,881
|
|
|
$
|
—
|
|
|
$
|
118,881
|
|
U.S. Treasury Bills
|
|
104,995
|
|
|
—
|
|
|
104,995
|
|
|||
Commercial paper
|
|
—
|
|
|
4,900
|
|
|
4,900
|
|
|||
Short-term investments:
|
|
|
|
|
|
|
||||||
U.S. Treasury Bills and Government Agency Securities
|
|
7,243
|
|
|
58,864
|
|
|
66,107
|
|
|||
Commercial paper
|
|
—
|
|
|
15,679
|
|
|
15,679
|
|
|||
Corporate bonds
|
|
—
|
|
|
34,795
|
|
|
34,795
|
|
|||
Long-term investments:
|
|
|
|
|
|
|
||||||
U.S. Treasury Bills and Government Agency Securities
|
|
22,904
|
|
|
32,454
|
|
|
55,358
|
|
|||
Corporate bonds
|
|
—
|
|
|
23,898
|
|
|
23,898
|
|
|||
CDs
|
|
—
|
|
|
1,005
|
|
|
1,005
|
|
|||
Other current assets:
|
|
|
|
|
|
|
||||||
Derivative assets
|
|
—
|
|
|
1,665
|
|
|
1,665
|
|
|||
Total assets measured at fair value
|
|
$
|
254,023
|
|
|
$
|
173,260
|
|
|
$
|
427,283
|
|
|
|
|
|
|
|
|
||||||
Accrued liabilities:
|
|
|
|
|
|
|
||||||
Derivative liabilities
|
|
$
|
3
|
|
|
$
|
291
|
|
|
$
|
294
|
|
|
|
September 30,
|
|
March 31,
|
||||
(in thousands)
|
|
2013
|
|
2013
|
||||
Accounts receivable
|
|
$
|
147,581
|
|
|
$
|
151,250
|
|
Provisions for returns
|
|
(7,756
|
)
|
|
(8,957
|
)
|
||
Provisions for promotions, rebates, and other
|
|
(15,771
|
)
|
|
(13,675
|
)
|
||
Provisions for doubtful accounts and sales allowances
|
|
(306
|
)
|
|
(409
|
)
|
||
Accounts receivable, net
|
|
$
|
123,748
|
|
|
$
|
128,209
|
|
|
|
September 30,
|
|
March 31,
|
||||
(in thousands)
|
|
2013
|
|
2013
|
||||
Raw materials
|
|
$
|
33,659
|
|
|
$
|
28,743
|
|
Work in process
|
|
432
|
|
|
82
|
|
||
Finished goods
|
|
35,059
|
|
|
38,610
|
|
||
Inventory, net
|
|
$
|
69,150
|
|
|
$
|
67,435
|
|
|
|
September 30,
|
|
March 31,
|
||||
(in thousands)
|
|
2013
|
|
2013
|
||||
Land
|
|
$
|
13,961
|
|
|
$
|
13,961
|
|
Buildings and improvements (useful life: 7-30 years)
|
|
89,434
|
|
|
72,263
|
|
||
Machinery and equipment (useful life: 2-10 years)
|
|
94,737
|
|
|
88,538
|
|
||
Software (useful life: 5-6 years)
|
|
31,268
|
|
|
30,538
|
|
||
Construction in progress
|
|
17,892
|
|
|
16,101
|
|
||
|
|
247,292
|
|
|
221,401
|
|
||
Accumulated depreciation and amortization
|
|
(128,974
|
)
|
|
(122,290
|
)
|
||
Property, plant, and equipment, net
|
|
$
|
118,318
|
|
|
$
|
99,111
|
|
|
|
September 30,
|
|
March 31,
|
||||
(in thousands)
|
|
2013
|
|
2013
|
||||
Employee compensation and benefits
|
|
$
|
23,164
|
|
|
$
|
29,796
|
|
Warranty obligation
|
|
12,881
|
|
|
13,410
|
|
||
Accrued advertising, sales, and marketing
|
|
4,245
|
|
|
3,735
|
|
||
Deferred revenue
|
|
3,994
|
|
|
3,072
|
|
||
Liabilities related to derivatives contracts
|
|
2,443
|
|
|
294
|
|
||
Income taxes payable
|
|
—
|
|
|
3,376
|
|
||
Restructuring and other related charges
(1)
|
|
47
|
|
|
1,165
|
|
||
Accrued other
|
|
14,152
|
|
|
11,571
|
|
||
Accrued liabilities
|
|
$
|
60,926
|
|
|
$
|
66,419
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
||||
(in thousands)
|
|
September 30, 2013
|
|
September 30, 2012
|
||||
Warranty obligation at March 31, 2013
|
|
$
|
13,410
|
|
|
$
|
13,346
|
|
Warranty provision relating to products shipped
|
|
4,154
|
|
|
7,440
|
|
||
Deductions for warranty claims processed
|
|
(4,683
|
)
|
|
(8,064
|
)
|
||
Warranty obligation at September 30, 2013
|
|
$
|
12,881
|
|
|
$
|
12,722
|
|
Fiscal Year Ending March 31,
|
|
(in thousands)
|
||
2014 (remaining 6 months)
|
|
$
|
1,997
|
|
2015
|
|
1,920
|
|
|
2016
|
|
1,341
|
|
|
2017
|
|
730
|
|
|
2018
|
|
652
|
|
|
Thereafter
|
|
1,576
|
|
|
Total minimum future rental payments
|
|
$
|
8,216
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(in thousands)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Cost of revenues
|
|
$
|
638
|
|
|
$
|
526
|
|
|
$
|
1,173
|
|
|
$
|
1,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research, development and engineering
|
|
1,652
|
|
|
1,256
|
|
|
3,020
|
|
|
2,380
|
|
||||
Selling, general and administrative
|
|
3,675
|
|
|
3,080
|
|
|
6,760
|
|
|
5,980
|
|
||||
Stock-based compensation included in operating expenses
|
|
5,327
|
|
|
4,336
|
|
|
9,780
|
|
|
8,360
|
|
||||
Total stock-based compensation
|
|
5,965
|
|
|
4,862
|
|
|
10,953
|
|
|
9,482
|
|
||||
Income tax benefit
|
|
(1,838
|
)
|
|
(1,532
|
)
|
|
(3,275
|
)
|
|
(2,914
|
)
|
||||
Total stock-based compensation, net of tax
|
|
$
|
4,127
|
|
|
$
|
3,330
|
|
|
$
|
7,678
|
|
|
$
|
6,568
|
|
|
Options Outstanding
|
|||||||||||
|
Number of
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual Life
|
|
Aggregate
Intrinsic
Value
|
|||||
|
(in thousands)
|
|
|
|
(in years)
|
|
(in thousands)
|
|||||
Outstanding at March 31, 2013
|
2,415
|
|
|
$
|
27.96
|
|
|
|
|
|
||
Options granted
|
176
|
|
|
$
|
45.98
|
|
|
|
|
|
||
Options exercised
|
(667
|
)
|
|
$
|
24.09
|
|
|
|
|
|
||
Options forfeited or expired
|
(10
|
)
|
|
$
|
32.74
|
|
|
|
|
|
||
Outstanding at September 30, 2013
|
1,914
|
|
|
$
|
30.94
|
|
|
4.2
|
|
$
|
29,739
|
|
Vested and expected to vest at September 30, 2013
|
1,872
|
|
|
$
|
30.76
|
|
|
4.2
|
|
$
|
29,419
|
|
Exercisable at September 30, 2013
|
1,275
|
|
|
$
|
27.85
|
|
|
3.4
|
|
$
|
23,735
|
|
|
Number of
Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
|
(in thousands)
|
|
|
|||
Non-vested at March 31, 2013
|
1,025
|
|
|
$
|
33.34
|
|
Restricted stock granted
|
541
|
|
|
$
|
46.10
|
|
Restricted stock vested
|
(274
|
)
|
|
$
|
32.61
|
|
Restricted stock forfeited
|
(31
|
)
|
|
$
|
36.86
|
|
Non-vested at September 30, 2013
|
1,261
|
|
|
$
|
38.88
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
Employee Stock Options
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Expected volatility
|
|
30.7
|
%
|
|
43.5
|
%
|
|
33.5
|
%
|
|
42.2
|
%
|
||||
Risk-free interest rate
|
|
1.2
|
%
|
|
0.5
|
%
|
|
0.7
|
%
|
|
0.6
|
%
|
||||
Expected dividends
|
|
0.8
|
%
|
|
1.3
|
%
|
|
0.9
|
%
|
|
1.3
|
%
|
||||
Expected life (in years)
|
|
4.2
|
|
|
4.3
|
|
|
4.2
|
|
|
4.3
|
|
||||
Weighted-average grant date fair value
|
|
$
|
11.64
|
|
|
$
|
10.84
|
|
|
$
|
11.83
|
|
|
$
|
10.43
|
|
ESPP
|
|
|
|
|
|
|
|
|
||||||||
Expected volatility
|
|
24.9
|
%
|
|
38.4
|
%
|
|
24.9
|
%
|
|
38.4
|
%
|
||||
Risk-free interest rate
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
||||
Expected dividends
|
|
0.9
|
%
|
|
1.1
|
%
|
|
0.9
|
%
|
|
1.1
|
%
|
||||
Expected life (in years)
|
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
||||
Weighted-average grant date fair value
|
|
$
|
9.58
|
|
|
$
|
8.95
|
|
|
$
|
9.58
|
|
|
$
|
8.95
|
|
(in thousands)
|
|
September 30, 2013
|
|
March 31, 2013
|
|||||
Accumulated unrealized gain (loss) on cash flow hedges
|
|
$
|
(2,325
|
)
|
|
$
|
1,349
|
|
|
Accumulated foreign currency translation adjustments
|
|
4,091
|
|
|
4,131
|
|
|||
Accumulated unrealized gain on investments
|
|
92
|
|
|
87
|
|
|||
Accumulated other comprehensive income
|
|
$
|
1,858
|
|
|
$
|
5,567
|
|
|
Gross Amount of Derivative Assets Presented in the Condensed Consolidated Balance Sheets
|
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
|
|
|||||||||
(in thousands)
|
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities
|
Cash Collateral Received
|
Net Amount of Derivative Assets
|
|||||||||
Derivatives subject to master netting agreements
|
$
|
70
|
|
$
|
(70
|
)
|
$
|
—
|
|
$
|
—
|
|
Derivatives not subject to master netting agreements
|
—
|
|
|
|
—
|
|
||||||
Total
|
$
|
70
|
|
|
|
$
|
—
|
|
|
Gross Amount of Derivative Liabilities Presented in the Condensed Consolidated Balance Sheets
|
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
|
|
|||||||||
(in thousands)
|
Gross Amount of Eligible Offsetting Recognized Derivative Assets
|
Cash Collateral Received
|
Net Amount of Derivative Liabilities
|
|||||||||
Derivatives subject to master netting agreements
|
$
|
(1,577
|
)
|
$
|
70
|
|
$
|
—
|
|
$
|
(1,507
|
)
|
Derivatives not subject to master netting agreements
|
(866
|
)
|
|
|
(866
|
)
|
||||||
Total
|
$
|
(2,443
|
)
|
|
|
$
|
(2,373
|
)
|
|
Gross Amount of Derivative Assets Presented in the Condensed Consolidated Balance Sheets
|
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
|
|
|||||||||
(in thousands)
|
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities
|
Cash Collateral Received
|
Net Amount of Derivative Assets
|
|||||||||
Derivatives subject to master netting agreements
|
$
|
1,005
|
|
$
|
(215
|
)
|
$
|
—
|
|
$
|
790
|
|
Derivatives not subject to master netting agreements
|
660
|
|
|
|
660
|
|
||||||
Total
|
$
|
1,665
|
|
|
|
$
|
1,450
|
|
|
Gross Amount of Derivative Liabilities Presented in the Condensed Consolidated Balance Sheets
|
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
|
|
|||||||||
(in thousands)
|
Gross Amount of Eligible Offsetting Recognized Derivative Assets
|
Cash Collateral Received
|
Net Amount of Derivative Liabilities
|
|||||||||
Derivatives subject to master netting agreements
|
$
|
(215
|
)
|
$
|
215
|
|
$
|
—
|
|
$
|
—
|
|
Derivatives not subject to master netting agreements
|
(79
|
)
|
|
|
(79
|
)
|
||||||
Total
|
$
|
(294
|
)
|
|
|
$
|
(79
|
)
|
|
Local Currency
|
|
USD Equivalent
|
|
Position
|
|
Maturity
|
|||||
|
(in thousands)
|
|
(in thousands)
|
|
|
|
|
|
||||
MX$
|
$
|
361,100
|
|
|
$
|
27,500
|
|
|
Buy MX$
|
|
Monthly over
|
15 months
|
|
|
Derivative Assets
Reported in Other Current Assets
|
|
Derivative Liabilities
Reported in Accrued Liabilities
|
||||||||||||
|
|
September 30,
|
|
March 31,
|
|
September 30,
|
|
March 31,
|
||||||||
(in thousands)
|
|
2013
|
|
2013
|
|
2013
|
|
2013
|
||||||||
Foreign exchange contracts designated as cash flow hedges
|
|
$
|
70
|
|
|
$
|
1,665
|
|
|
$
|
2,443
|
|
|
$
|
294
|
|
(in thousands)
|
|
Gain (loss) included in AOCI as of March 31, 2013
|
|
Amount of gain (loss)
recognized in AOCI
(effective portion)
|
|
Amount of gain (loss)
reclassified from AOCI
to income (loss)
(effective portion)
|
|
Gain (loss) included in AOCI as of September 30, 2013
|
||||||||
Foreign exchange contracts designated as cash flow hedges
|
|
$
|
1,371
|
|
|
$
|
(3,646
|
)
|
|
$
|
98
|
|
|
$
|
(2,373
|
)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(in thousands)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Gain (loss) on foreign exchange contracts designated as cash flow hedges
|
|
$
|
(156
|
)
|
|
$
|
1,074
|
|
|
$
|
98
|
|
|
$
|
2,768
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(in thousands)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Gain (loss) on foreign exchange contracts
|
|
$
|
(1,266
|
)
|
|
$
|
(648
|
)
|
|
$
|
(1,193
|
)
|
|
$
|
819
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(in thousands, except per share data)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
23,138
|
|
|
$
|
25,924
|
|
|
$
|
50,091
|
|
|
$
|
49,487
|
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares-basic
|
|
42,810
|
|
|
41,482
|
|
|
42,751
|
|
|
41,571
|
|
||||
Dilutive effect of employee equity incentive plans
|
|
787
|
|
|
921
|
|
|
916
|
|
|
950
|
|
||||
Weighted average common shares-diluted
|
|
43,597
|
|
|
42,403
|
|
|
43,667
|
|
|
42,521
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
|
$
|
0.54
|
|
|
$
|
0.62
|
|
|
$
|
1.17
|
|
|
$
|
1.19
|
|
Diluted earnings per common share
|
|
$
|
0.53
|
|
|
$
|
0.61
|
|
|
$
|
1.15
|
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
|
|
||||||||
Potentially dilutive securities excluded from diluted earnings per common share because their effect is anti-dilutive
|
|
183
|
|
|
1,061
|
|
|
162
|
|
|
1,081
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
(in thousands)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net revenues from unaffiliated customers:
|
|
|
|
|
|
|
|
|
||||||||
Office and Contact Center
|
|
$
|
139,945
|
|
|
$
|
133,119
|
|
|
$
|
291,128
|
|
|
$
|
267,152
|
|
Mobile
|
|
42,685
|
|
|
33,305
|
|
|
84,309
|
|
|
69,462
|
|
||||
Gaming and Computer Audio
|
|
8,156
|
|
|
7,797
|
|
|
14,607
|
|
|
14,586
|
|
||||
Clarity
|
|
3,194
|
|
|
5,059
|
|
|
6,754
|
|
|
9,445
|
|
||||
Total net revenues
|
|
$
|
193,980
|
|
|
$
|
179,280
|
|
|
$
|
396,798
|
|
|
$
|
360,645
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30, 2013
|
||||||||||||
(in thousands)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net revenues from unaffiliated customers:
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
115,795
|
|
|
$
|
107,513
|
|
|
$
|
237,113
|
|
|
$
|
211,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Europe and Africa
|
|
43,094
|
|
|
38,951
|
|
|
87,479
|
|
|
80,527
|
|
||||
Asia Pacific
|
|
23,280
|
|
|
19,839
|
|
|
47,160
|
|
|
43,418
|
|
||||
Americas, excluding U.S.
|
|
11,811
|
|
|
12,977
|
|
|
25,046
|
|
|
25,109
|
|
||||
Total international net revenues
|
|
78,185
|
|
|
71,767
|
|
|
159,685
|
|
|
149,054
|
|
||||
Total net revenues
|
|
$
|
193,980
|
|
|
$
|
179,280
|
|
|
$
|
396,798
|
|
|
$
|
360,645
|
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||||||||||||||
(in thousands, except percentages)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||||||
Net revenues
|
|
$
|
193,980
|
|
|
100.0
|
%
|
|
$
|
179,280
|
|
|
100.0
|
%
|
|
$
|
396,798
|
|
|
100.0
|
%
|
|
$
|
360,645
|
|
|
100.0
|
%
|
Cost of revenues
|
|
94,366
|
|
|
48.6
|
%
|
|
82,052
|
|
|
45.8
|
%
|
|
191,552
|
|
|
48.3
|
%
|
|
165,721
|
|
|
46.0
|
%
|
||||
Gross profit
|
|
99,614
|
|
|
51.4
|
%
|
|
97,228
|
|
|
54.2
|
%
|
|
205,246
|
|
|
51.7
|
%
|
|
194,924
|
|
|
54.0
|
%
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Research, development, and engineering
|
|
20,447
|
|
|
10.5
|
%
|
|
19,581
|
|
|
10.9
|
%
|
|
41,310
|
|
|
10.4
|
%
|
|
39,277
|
|
|
10.9
|
%
|
||||
Selling, general, and administrative
|
|
48,507
|
|
|
25.0
|
%
|
|
43,130
|
|
|
24.1
|
%
|
|
96,604
|
|
|
24.3
|
%
|
|
89,034
|
|
|
24.7
|
%
|
||||
Restructuring and other related charges
|
|
(176
|
)
|
|
(0.1
|
)%
|
|
—
|
|
|
—
|
%
|
|
547
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
%
|
||||
Total operating expenses
|
|
68,778
|
|
|
35.5
|
%
|
|
62,711
|
|
|
35.0
|
%
|
|
138,461
|
|
|
34.9
|
%
|
|
128,311
|
|
|
35.6
|
%
|
||||
Operating income
|
|
30,836
|
|
|
15.9
|
%
|
|
34,517
|
|
|
19.3
|
%
|
|
66,785
|
|
|
16.8
|
%
|
|
66,613
|
|
|
18.5
|
%
|
||||
Interest and other income (expense), net
|
|
359
|
|
|
0.2
|
%
|
|
275
|
|
|
0.2
|
%
|
|
(127
|
)
|
|
—
|
%
|
|
287
|
|
|
0.1
|
%
|
||||
Income before income taxes
|
|
31,195
|
|
|
16.1
|
%
|
|
34,792
|
|
|
19.4
|
%
|
|
66,658
|
|
|
16.8
|
%
|
|
66,900
|
|
|
18.6
|
%
|
||||
Income tax expense
|
|
8,057
|
|
|
4.2
|
%
|
|
8,868
|
|
|
4.9
|
%
|
|
16,567
|
|
|
4.2
|
%
|
|
17,413
|
|
|
4.8
|
%
|
||||
Net income
|
|
$
|
23,138
|
|
|
11.9
|
%
|
|
$
|
25,924
|
|
|
14.5
|
%
|
|
$
|
50,091
|
|
|
12.6
|
%
|
|
$
|
49,487
|
|
|
13.7
|
%
|
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
||||||||||||||||||
|
|
September 30,
|
|
Increase
|
|
September 30,
|
|
Increase
|
||||||||||||||||||||||
(in thousands, except percentages)
|
|
2013
|
|
2012
|
|
(Decrease)
|
|
2013
|
|
2012
|
|
(Decrease)
|
||||||||||||||||||
Net revenues from unaffiliated customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Office and Contact Center
|
|
$
|
139,945
|
|
|
$
|
133,119
|
|
|
$
|
6,826
|
|
|
5.1
|
%
|
|
$
|
291,128
|
|
|
$
|
267,152
|
|
|
$
|
23,976
|
|
|
9.0
|
%
|
Mobile
|
|
42,685
|
|
|
33,305
|
|
|
9,380
|
|
|
28.2
|
%
|
|
84,309
|
|
|
69,462
|
|
|
14,847
|
|
|
21.4
|
%
|
||||||
Gaming and Computer Audio
|
|
8,156
|
|
|
7,797
|
|
|
359
|
|
|
4.6
|
%
|
|
14,607
|
|
|
14,586
|
|
|
21
|
|
|
0.1
|
%
|
||||||
Clarity
|
|
3,194
|
|
|
5,059
|
|
|
(1,865
|
)
|
|
(36.9
|
)%
|
|
6,754
|
|
|
9,445
|
|
|
(2,691
|
)
|
|
(28.5
|
)%
|
||||||
Total net revenues
|
|
$
|
193,980
|
|
|
$
|
179,280
|
|
|
$
|
14,700
|
|
|
8.2
|
%
|
|
$
|
396,798
|
|
|
$
|
360,645
|
|
|
$
|
36,153
|
|
|
10.0
|
%
|
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
||||||||||||||||||
|
|
September 30,
|
|
Increase
|
|
September 30,
|
|
Increase
|
|||||||||||||||||||||
(in thousands, except percentages)
|
|
2013
|
|
2012
|
|
(Decrease)
|
|
2013
|
|
2012
|
|
(Decrease)
|
|||||||||||||||||
Net revenues from unaffiliated customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S.
|
|
$
|
115,795
|
|
|
$
|
107,513
|
|
|
$
|
8,282
|
|
|
7.7
|
%
|
|
$
|
237,113
|
|
|
$
|
211,591
|
|
|
$
|
25,522
|
|
12.1
|
%
|
As a percentage of net revenues
|
|
59.7
|
%
|
|
60.0
|
%
|
|
|
|
|
|
|
59.8
|
%
|
|
58.7
|
%
|
|
|
|
|
|
|||||||
Europe and Africa
|
|
43,094
|
|
|
38,951
|
|
|
4,143
|
|
|
10.6
|
%
|
|
87,479
|
|
|
80,527
|
|
|
6,952
|
|
8.6
|
%
|
||||||
Asia Pacific
|
|
23,280
|
|
|
19,839
|
|
|
3,441
|
|
|
17.3
|
%
|
|
47,160
|
|
|
43,418
|
|
|
3,742
|
|
8.6
|
%
|
||||||
Americas, excluding U.S.
|
|
11,811
|
|
|
12,977
|
|
|
(1,166
|
)
|
|
(9.0
|
)%
|
|
25,046
|
|
|
25,109
|
|
|
(63
|
)
|
(0.3
|
)%
|
||||||
Total international net revenues
|
|
78,185
|
|
|
71,767
|
|
|
6,418
|
|
|
8.9
|
%
|
|
159,685
|
|
|
149,054
|
|
|
10,631
|
|
7.1
|
%
|
||||||
As a percentage of net revenues
|
|
40.3
|
%
|
|
40.0
|
%
|
|
|
|
|
|
|
40.2
|
%
|
|
41.3
|
%
|
|
|
|
|
|
|||||||
Total net revenues
|
|
$
|
193,980
|
|
|
$
|
179,280
|
|
|
$
|
14,700
|
|
|
8.2
|
%
|
|
$
|
396,798
|
|
|
$
|
360,645
|
|
|
$
|
36,153
|
|
10.0
|
%
|
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
||||||||||||||||||||
|
|
September 30,
|
|
Increase
|
|
September 30,
|
|
Increase
|
||||||||||||||||||||||
(in thousands, except percentages)
|
|
2013
|
|
2012
|
|
(Decrease)
|
|
2013
|
|
2012
|
|
(Decrease)
|
||||||||||||||||||
Net revenues
|
|
$
|
193,980
|
|
|
$
|
179,280
|
|
|
$
|
14,700
|
|
|
8.2
|
%
|
|
$
|
396,798
|
|
|
$
|
360,645
|
|
|
$
|
36,153
|
|
|
10.0
|
%
|
Cost of revenues
|
|
94,366
|
|
|
82,052
|
|
|
12,314
|
|
|
15.0
|
%
|
|
191,552
|
|
|
165,721
|
|
|
25,831
|
|
|
15.6
|
%
|
||||||
Gross profit
|
|
$
|
99,614
|
|
|
$
|
97,228
|
|
|
$
|
2,386
|
|
|
2.5
|
%
|
|
$
|
205,246
|
|
|
$
|
194,924
|
|
|
$
|
10,322
|
|
|
5.3
|
%
|
Gross profit %
|
|
51.4
|
%
|
|
54.2
|
%
|
|
|
|
|
|
|
51.7
|
%
|
|
54.0
|
%
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
||||||||||||||||||||
|
|
September 30,
|
|
Increase
|
|
September 30,
|
|
Increase
|
||||||||||||||||||||||
(in thousands, except percentages)
|
|
2013
|
|
2012
|
|
(Decrease)
|
|
2013
|
|
2012
|
|
(Decrease)
|
||||||||||||||||||
Research, development, and engineering
|
|
$
|
20,447
|
|
|
$
|
19,581
|
|
|
$
|
866
|
|
|
4.4
|
%
|
|
$
|
41,310
|
|
|
$
|
39,277
|
|
|
$
|
2,033
|
|
|
5.2
|
%
|
% of net revenues
|
|
10.5
|
%
|
|
10.9
|
%
|
|
|
|
|
|
|
10.4
|
%
|
|
10.9
|
%
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
||||||||||||||||||||
|
|
September 30,
|
|
Increase
|
|
September 30,
|
|
Increase
|
||||||||||||||||||||||
(in thousands, except percentages)
|
|
2013
|
|
2012
|
|
(Decrease)
|
|
2013
|
|
2012
|
|
(Decrease)
|
||||||||||||||||||
Selling, general, and administrative
|
|
$
|
48,507
|
|
|
$
|
43,130
|
|
|
$
|
5,377
|
|
|
12.5
|
%
|
|
$
|
96,604
|
|
|
$
|
89,034
|
|
|
$
|
7,570
|
|
|
8.5
|
%
|
% of net revenues
|
|
25.0
|
%
|
|
24.1
|
%
|
|
|
|
|
|
|
24.3
|
%
|
|
24.7
|
%
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|||||||||||||||||||
|
|
September 30,
|
|
Increase
|
|
September 30,
|
|
Increase
|
|||||||||||||||||||||
(in thousands except percentages)
|
|
2013
|
|
2012
|
|
(Decrease)
|
|
2013
|
|
2012
|
|
(Decrease)
|
|||||||||||||||||
Interest and other income (expense), net
|
|
$
|
359
|
|
|
$
|
275
|
|
|
$
|
84
|
|
|
30.5
|
%
|
|
$
|
(127
|
)
|
|
$
|
287
|
|
|
(414
|
)
|
|
(144.3
|
)%
|
% of net revenues
|
|
0.2
|
%
|
|
0.2
|
%
|
|
|
|
|
|
|
—
|
%
|
|
0.1
|
%
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
||||||||||||||||||
|
|
September 30,
|
|
Increase
|
|
September 30,
|
|
Increase
|
||||||||||||||||||||||
(in thousands except percentages)
|
|
2013
|
|
2012
|
|
(Decrease)
|
|
2013
|
|
2012
|
|
(Decrease)
|
||||||||||||||||||
Income before income taxes
|
|
$
|
31,195
|
|
|
$
|
34,792
|
|
|
$
|
(3,597
|
)
|
|
(10.3
|
)%
|
|
$
|
66,658
|
|
|
$
|
66,900
|
|
|
$
|
(242
|
)
|
|
(0.4
|
)%
|
Income tax expense
|
|
8,057
|
|
|
8,868
|
|
|
(811
|
)
|
|
(9.1
|
)%
|
|
16,567
|
|
|
17,413
|
|
|
(846
|
)
|
|
(4.9
|
)%
|
||||||
Net income
|
|
$
|
23,138
|
|
|
$
|
25,924
|
|
|
$
|
(2,786
|
)
|
|
(10.7
|
)%
|
|
$
|
50,091
|
|
|
$
|
49,487
|
|
|
$
|
604
|
|
|
1.2
|
%
|
Effective tax rate
|
|
25.8
|
%
|
|
25.5
|
%
|
|
|
|
|
|
|
24.9
|
%
|
|
26.0
|
%
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
GAAP Gross profit
|
$
|
99,614
|
|
|
$
|
97,228
|
|
|
$
|
205,246
|
|
|
$
|
194,924
|
|
Stock-based compensation expense
|
638
|
|
|
526
|
|
|
1,173
|
|
|
1,122
|
|
||||
Accelerated depreciation
|
41
|
|
|
318
|
|
|
261
|
|
|
442
|
|
||||
Lease termination charges
|
1,126
|
|
|
—
|
|
|
1,388
|
|
|
—
|
|
||||
Non-GAAP Gross profit
|
$
|
101,419
|
|
|
$
|
98,072
|
|
|
$
|
208,068
|
|
|
$
|
196,488
|
|
Non-GAAP Gross profit %
|
52.3
|
%
|
|
54.7
|
%
|
|
52.4
|
%
|
|
54.5
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
GAAP Research, development, and engineering
|
$
|
20,447
|
|
|
$
|
19,581
|
|
|
$
|
41,310
|
|
|
$
|
39,277
|
|
Stock-based compensation expense
|
(1,652
|
)
|
|
(1,256
|
)
|
|
(3,020
|
)
|
|
(2,380
|
)
|
||||
Accelerated depreciation
|
(49
|
)
|
|
(226
|
)
|
|
(200
|
)
|
|
(283
|
)
|
||||
Lease termination charges
|
(21
|
)
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
||||
Purchase accounting amortization
|
(50
|
)
|
|
—
|
|
|
(100
|
)
|
|
—
|
|
||||
Non-GAAP Research, development, and engineering
|
$
|
18,675
|
|
|
$
|
18,099
|
|
|
$
|
37,969
|
|
|
$
|
36,614
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP Selling, general, and administrative
|
$
|
48,507
|
|
|
$
|
43,130
|
|
|
$
|
96,604
|
|
|
$
|
89,034
|
|
Stock-based compensation expense
|
(3,675
|
)
|
|
(3,080
|
)
|
|
(6,759
|
)
|
|
(5,980
|
)
|
||||
Lease termination charges
|
(45
|
)
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
||||
Purchase accounting amortization
|
(35
|
)
|
|
—
|
|
|
(106
|
)
|
|
—
|
|
||||
Non-GAAP Selling, general, and administrative
|
$
|
44,752
|
|
|
$
|
40,050
|
|
|
$
|
89,694
|
|
|
$
|
83,054
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP Operating expenses
|
$
|
68,778
|
|
|
$
|
62,711
|
|
|
$
|
138,461
|
|
|
$
|
128,311
|
|
Stock-based compensation expense
|
(5,327
|
)
|
|
(4,336
|
)
|
|
(9,779
|
)
|
|
(8,360
|
)
|
||||
Accelerated depreciation
|
(49
|
)
|
|
(226
|
)
|
|
(200
|
)
|
|
(283
|
)
|
||||
Lease termination charges
|
(66
|
)
|
|
—
|
|
|
(66
|
)
|
|
—
|
|
||||
Purchase accounting amortization
|
(85
|
)
|
|
—
|
|
|
(206
|
)
|
|
—
|
|
||||
Restructuring and other related charges
|
176
|
|
|
—
|
|
|
(547
|
)
|
|
—
|
|
||||
Non-GAAP Operating expenses
|
$
|
63,427
|
|
|
$
|
58,149
|
|
|
$
|
127,663
|
|
|
$
|
119,668
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
GAAP Operating income
|
$
|
30,836
|
|
|
$
|
34,517
|
|
|
$
|
66,785
|
|
|
$
|
66,613
|
|
Stock-based compensation expense
|
5,965
|
|
|
4,862
|
|
|
10,952
|
|
|
9,482
|
|
||||
Accelerated depreciation
|
90
|
|
|
544
|
|
|
461
|
|
|
725
|
|
||||
Lease termination charges
|
1,192
|
|
|
—
|
|
|
1,454
|
|
|
—
|
|
||||
Purchase accounting amortization
|
85
|
|
|
—
|
|
|
206
|
|
|
—
|
|
||||
Restructuring and other related charges
|
(176
|
)
|
|
—
|
|
|
547
|
|
|
—
|
|
||||
Non-GAAP Operating income
|
$
|
37,992
|
|
|
$
|
39,923
|
|
|
$
|
80,405
|
|
|
$
|
76,820
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP Income before income taxes
|
$
|
31,195
|
|
|
$
|
34,792
|
|
|
$
|
66,658
|
|
|
$
|
66,900
|
|
Stock-based compensation expense
|
5,965
|
|
|
4,862
|
|
|
10,952
|
|
|
9,482
|
|
||||
Accelerated depreciation
|
90
|
|
|
544
|
|
|
461
|
|
|
725
|
|
||||
Lease termination charges
|
1,192
|
|
|
—
|
|
|
1,454
|
|
|
—
|
|
||||
Purchase accounting amortization
|
85
|
|
|
—
|
|
|
206
|
|
|
—
|
|
||||
Restructuring and other related charges
|
(176
|
)
|
|
—
|
|
|
547
|
|
|
—
|
|
||||
Non-GAAP Income before income taxes
|
$
|
38,351
|
|
|
$
|
40,198
|
|
|
$
|
80,278
|
|
|
$
|
77,107
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP Income tax expense
|
$
|
8,057
|
|
|
$
|
8,868
|
|
|
$
|
16,567
|
|
|
$
|
17,413
|
|
Income tax effect of stock-based compensation expense
|
1,838
|
|
|
1,532
|
|
|
3,275
|
|
|
2,914
|
|
||||
Income tax effect of accelerated depreciation
|
—
|
|
|
116
|
|
|
88
|
|
|
155
|
|
||||
Income tax effect of lease termination charges
|
276
|
|
|
—
|
|
|
333
|
|
|
—
|
|
||||
Income tax effect of purchase accounting amortization
|
24
|
|
|
—
|
|
|
61
|
|
|
—
|
|
||||
Income tax effect of restructuring and other related charges
|
(66
|
)
|
|
—
|
|
|
204
|
|
|
—
|
|
||||
Tax benefit from the release of tax reserves & transfer pricing adjustments
|
226
|
|
|
—
|
|
|
1,161
|
|
|
—
|
|
||||
Non-GAAP Income tax expense
|
$
|
10,355
|
|
|
$
|
10,516
|
|
|
$
|
21,689
|
|
|
$
|
20,482
|
|
Non-GAAP Income tax expense as a % of Non-GAAP Income before income taxes
|
27.0
|
%
|
|
26.2
|
%
|
|
27.0
|
%
|
|
26.6
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
GAAP Net income
|
$
|
23,138
|
|
|
$
|
25,924
|
|
|
$
|
50,091
|
|
|
$
|
49,487
|
|
Stock-based compensation expense
|
5,965
|
|
|
4,862
|
|
|
10,952
|
|
|
9,482
|
|
||||
Accelerated depreciation
|
90
|
|
|
544
|
|
|
461
|
|
|
725
|
|
||||
Lease termination charges
|
1,192
|
|
|
—
|
|
|
1,454
|
|
|
—
|
|
||||
Purchase accounting amortization
|
85
|
|
|
—
|
|
|
206
|
|
|
—
|
|
||||
Restructuring and other related charges
|
(176
|
)
|
|
—
|
|
|
547
|
|
|
—
|
|
||||
Income tax effect
|
(2,298
|
)
|
(1)
|
(1,648
|
)
|
(2)
|
(5,122
|
)
|
(3)
|
(3,069
|
)
|
||||
Non-GAAP Net income
|
$
|
27,996
|
|
|
$
|
29,682
|
|
|
$
|
58,589
|
|
|
$
|
56,625
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP Diluted earnings per common share
|
$
|
0.53
|
|
|
$
|
0.61
|
|
|
$
|
1.15
|
|
|
$
|
1.16
|
|
Stock-based compensation expense
|
0.14
|
|
|
0.11
|
|
|
0.25
|
|
|
0.22
|
|
||||
Accelerated depreciation
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
||||
Lease termination costs
|
0.02
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
||||
Restructuring and other related charges
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
||||
Income tax effect
|
(0.05
|
)
|
|
(0.03
|
)
|
|
(0.12
|
)
|
|
(0.06
|
)
|
||||
Non-GAAP Diluted earnings per common share
|
$
|
0.64
|
|
|
$
|
0.70
|
|
|
$
|
1.34
|
|
|
$
|
1.33
|
|
|
|
|
|
|
|
|
|
||||||||
Shares used in diluted earnings per common share calculation
|
43,597
|
|
|
42,403
|
|
|
43,667
|
|
|
42,521
|
|
(1)
|
Excluded amount represents tax benefits from stock-based compensation, accelerated depreciation, lease termination charges, purchase accounting amortization, restructuring and other related charges, and the release of tax reserves.
|
(2)
|
Excluded amount represents tax benefits from stock-based compensation and accelerated depreciation.
|
(3)
|
Excluded amount represents tax benefits from stock-based compensation, accelerated depreciation, lease termination charges, purchase accounting amortization, restructuring and other related charges, the release of tax reserves, and transfer pricing adjustments.
|
|
|
Six Months Ended
|
|
|
||||||||
|
|
September 30,
|
|
|
||||||||
(in thousands)
|
|
2013
|
|
2012
|
|
Change
|
||||||
Net cash provided by operating activities
|
|
$
|
57,606
|
|
|
$
|
60,024
|
|
|
$
|
(2,418
|
)
|
Net cash used for investing activities
|
|
(23,467
|
)
|
|
(34,664
|
)
|
|
11,197
|
|
|||
Net cash used for financing activities
|
|
(17,724
|
)
|
|
(25,582
|
)
|
|
7,858
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
789
|
|
|
(1,184
|
)
|
|
1,973
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
$
|
17,204
|
|
|
$
|
(1,406
|
)
|
|
$
|
18,610
|
|
•
|
A net decrease in accounts payable resulting primarily due to timing of payments made during the second quarter of fiscal year 2014 compared with the same prior year quarter.
|
•
|
A net decrease in accrued liabilities resulting primarily from lower accruals for performance-based compensation in the first half of fiscal year 2014 than in the same prior year period..
|
•
|
A net decrease in income taxes payable due primarily to the timing of estimated tax payments made during the second quarter of fiscal year 2014.
|
•
|
A net increase in accounts receivable due primarily to timing of revenues earned during the second quarter of fiscal year 2014 compared with the same prior year quarter.
|
•
|
A net increase in inventory due primarily to timing of revenues earned during the second quarter of fiscal year 2014 compared with the same prior year quarter.
|
•
|
A decrease in repayments on our revolving line of credit
|
•
|
An increase in proceeds from employees' exercise of stock options
|
•
|
maximum ratio of funded debt to earnings before interest, taxes, depreciation and amortization ("EBITDA"); and,
|
•
|
minimum EBITDA coverage ratio, which is calculated as interest payments divided by EBITDA.
|
(in millions)
|
|
September 30, 2013
|
|
March 31, 2013
|
||||
Cash and cash equivalents
|
|
$
|
246.0
|
|
|
$
|
228.8
|
|
Short-term investments
|
|
$
|
113.1
|
|
|
$
|
116.6
|
|
Long-term investments
|
|
$
|
79.5
|
|
|
$
|
80.3
|
|
Currency - forward contracts
|
Position
|
|
USD Value of Net Foreign Exchange Contracts
|
|
Foreign Exchange Gain From 10% Appreciation of USD
|
|
Foreign Exchange Loss From 10% Depreciation of USD
|
||||||
EUR
|
Sell Euro
|
|
$
|
21.6
|
|
|
$
|
2.2
|
|
|
$
|
(2.2
|
)
|
GBP
|
Sell GBP
|
|
$
|
4.2
|
|
|
$
|
0.4
|
|
|
$
|
(0.4
|
)
|
AUD
|
Sell AUD
|
|
$
|
4.3
|
|
|
$
|
0.4
|
|
|
$
|
(0.4
|
)
|
Currency - option contracts
|
USD Value of Net Foreign Exchange Contracts
|
|
Foreign Exchange Gain From 10% Appreciation of USD
|
|
Foreign Exchange Loss From 10% Depreciation of USD
|
||||||
Call options
|
$
|
102.8
|
|
|
$
|
2.4
|
|
|
$
|
(7.8
|
)
|
Put options
|
$
|
95.4
|
|
|
$
|
3.9
|
|
|
$
|
(0.5
|
)
|
Currency - cross-currency swap contracts
|
USD Value of Net Foreign Exchange Contracts
|
|
Foreign Exchange Loss From 10% Appreciation of USD
|
|
Foreign Exchange Gain From 10% Depreciation of USD
|
||||||
Position: Buy MX$
|
$
|
27.5
|
|
|
$
|
(2.8
|
)
|
|
$
|
2.7
|
|
(a)
|
Evaluation of disclosure controls and procedures
|
(b)
|
Changes in internal control over financial reporting
|
•
|
Our operating results are highly dependent on the volume and timing of orders received during the quarter. Customers generally order on an as-needed basis, and we typically do not obtain firm, long-term purchase commitments from them, making forecasting difficult. As a result, our revenues in any quarter depend primarily on orders booked and shipped in that quarter, which fluctuate for many reasons beyond our control, including customers' sales promotions and campaigns, large customer deployments of Unified Communications ("UC") infrastructure, general economic conditions, seasonality, customer cancellations and rescheduling, and fluctuating employment opportunities that increase or reduce employee turnover and, thereby, new headset needs.
|
•
|
Our gross margins vary for a number of reasons, including customer demand, competition, product life cycle, new product introductions, unit volumes, commodity and supply chain costs, geographic sales mix, foreign currency exchange rates, and the complexity and functionality of new product innovations. Moreover, there are significant variances in gross profit percentages between our higher and lower margin products such that small variations in product mix, which can be difficult to predict, can materially impact gross profit. Additionally, if we are unable to timely introduce new products within projected costs, product demand is less than anticipated, there are product pricing, marketing and other initiatives by our competitors to which we need to react or that are initiated by us to drive sales that lower our margins, then our overall gross margin will decrease. Our gross margins also vary significantly by sales geography and customer type. When the mix of products sold shifts from higher margin product lines to lower margin product lines, to lower margin sales geographies, or to lower margin products within product lines, our overall gross margins and our profitability may be adversely affected and create unanticipated fluctuations in our operating results.
|
•
|
We incur a large portion of our costs in advance of customer orders because we must plan research and production, order materials and components, commence manufacturing, incur sales and marketing expenditures, and other operating commitments prior to obtaining firm commitments from our customers. In the event inventories for one or more products exceed demand, the risk of inventory write-downs increases. Conversely, in the event we have inadequate inventory to timely meet the demand for particular products, we may miss significant revenue opportunities or incur significant expenses such as air freight, costs for expediting shipments, and other negative variances in our manufacturing processes as we attempt to make up for the shortfall. When a significant portion of our revenue is derived from new products, forecasting appropriate volumes of production is even more difficult.
|
•
|
Increasingly, we are incorporating software features and functionalities into our products, offering firmware and software fixes, updates and upgrades electronically over the Internet and developing standalone software applications. As the nature and extent of software integration in our products increases or if sales of standalone software applications become more material to our revenues, the way we report our revenue related to our products could be significantly affected. For example, we are increasingly required to evaluate whether our revenue transactions include multiple deliverables and, as such, whether the revenue generated by each transaction should be recognized upon delivery, over a period of time or apportioned and recognized based on a combination of the two in light of all the facts and circumstances related to each transaction. Moreover, the software revenue recognition rules are complex and dynamic. If we fail to accurately apply these complex rules and policies to our business, we may incorrectly report revenues in one or more quarterly or annual periods. If this were to occur and the error were to be material, we may be required to restate our financial statements, which could materially, negatively impact our results for the affected periods, cause our stock price to decline, and result in securities class actions or other similar litigation.
|
•
|
As UC becomes more widely adopted, the risk that competitors will offer solutions that will effectively commoditize our headsets, which, in turn, will reduce the sales prices for our headsets.
|
•
|
Our plans are dependent upon the market success of major platform providers and strategic partners such as Microsoft Corporation, Cisco Systems, Inc., Avaya, Inc., Alcatel-Lucent, and IBM, and we have limited ability to influence the functionality of their platforms and product offerings, their rate of deployment, and their willingness to integrate their platforms and product offerings with our solutions.
|
•
|
The development of UC solutions is technically complex and may delay or limit our ability to introduce solutions that are cost effective, feature-rich, stable, and attractive to our customers.
|
•
|
Our development of UC solutions is dependent on our ability to implement and execute new and different processes in connection with the design, development, and manufacturing of complex electronic systems composed of hardware, firmware, and software that must work in a wide variety of environments and with multiple devices, which may increase the risk of development delays or errors or require the hiring of new personnel or third party contractors at increased cost.
|
•
|
Because UC offerings involve complex integration of hardware and software with UC infrastructure, our sales model and expertise will need to continue to evolve. If we fail to anticipate or effectively implement changes in our sales model or channel our selling techniques and efforts at the primary UC decision makers within enterprises, our ability to maintain and grow our share of the UC market may be adversely impacted.
|
•
|
Competition for market share is anticipated to increase, and some competitors may have superior technical and economic resources.
|
•
|
UC solutions may not be adopted with the breadth and speed in the marketplace that we currently anticipate and sales cycles for more complex UC deployments may substantially increase over our traditional OCC products.
|
•
|
UC may evolve rapidly and unpredictably and our inability to timely and cost-effectively adapt to those changes and future requirements may impact our profitability in this market and our overall margins.
|
•
|
Inflexibility to timely respond to changes specific to us or our industry. For instance, rapid increases in production levels to meet unanticipated product demand could result in higher costs for components or materials, increased expenditures for expedited freight delivery, higher overtime costs and other expenses, and decreases in manufacturing yields, any of which can reduce our profit margins.
|
•
|
We obtain certain raw components and materials from specific suppliers and ODMs, including a majority of our
Bluetooth
products from GoerTek, Inc. Financial instability of a supplier may necessitate a transition to alternative suppliers, which could increase our costs and delay product deliveries. Additionally, suppliers and ODMs may choose to discontinue supplying raw materials or manufacturing components, subassemblies or all or a portion of our products for a variety of reasons, which may (i) be difficult, time-consuming, or costly to replace, (ii) force us to redesign or end of life certain products, or (iii) render us unable to meet customer demand. Consequently, if one or more suppliers or ODMs is unable or unwilling to meet our demand, delivery, or price requirements, our business and operating results in all or a portion of our product lines could be materially adversely affected in the event it is difficult, costly, or time-consuming to identify and ramp-up alternative ODMs.
|
•
|
Periodically, we purchase large quantities of components or materials being discontinued by our suppliers as part of a last-time buy strategy. For example, we have made last-time purchases in excess of our short-term needs, which are included in inventory and used over a period of several years. We routinely review inventory for usage potential, including fulfillment of customer warranty obligations and spare part requirements, and write down to the lower of cost or market value the excess and obsolete inventory, which may have an adverse effect on our results of operations.
|
•
|
Although we generally use standard raw components and materials for our products, the high development costs associated with existing and emerging wireless and other technologies frequently require us to work with a single source of components or materials on particular products. We, or any of our suppliers, may experience challenges in designing, developing, and manufacturing components or materials using these new technologies, which could affect our ability to meet market demand.
|
•
|
In order to accommodate the lead times requirements of our suppliers, we obtain certain raw components or materials from certain suppliers in advance based on our projections of demand, we may be unable to react quickly to changes in demand, potentially resulting in either (i) excess inventories of such components or materials, or (ii) product shortages. Lead times are particularly long for silicon-based components incorporating radio frequency and digital signal processing technologies and such components make up an increasingly larger portion of our product costs. In particular, many consumer product orders have shorter lead times than component lead times, making it increasingly necessary to carry more inventory in anticipation of future orders, which may not materialize. Failure to synchronize the timing of purchases of components or materials and other products to meet demand could increase our inventories or decrease our revenues and could materially adversely affect our business, financial condition, and results of operations.
|
•
|
Prices for commodities may rise based on demands from within our industry and other industries with which we compete for components or materials. Additionally, if our suppliers experience increased demand or shortages, it could affect the timeliness of deliveries to us and our customers. Any such shortages or further increases in prices could materially adversely affect our business, financial condition, and results of operations.
|
•
|
As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SEC adopted disclosure requirements regarding the use of certain minerals, known as conflict minerals, which are mined from the Democratic Republic of Congo and adjoining countries, as well as procedures regarding a manufacturer's efforts to identify and prevent the sourcing of such minerals and metals produced from those minerals. Additional reporting obligations are being considered by the European Union. The implementation of the existing U.S. requirements and any additional requirements in Europe could affect the sourcing and availability of metals used in the manufacture of a limited number of parts contained in our products. For example, the implementation of these disclosure requirements may decrease the number of suppliers capable of supplying our needs for certain metals, thereby negatively affecting our ability to obtain products in sufficient quantities or at competitive prices. Our material sourcing is broad based and multi-tiered, and we may be unable to conclusively verify the origins for all metals used in our products. We may suffer financial and reputational harm if customers require, and we are unable to deliver, certification that our products are conflict free. Regardless, we will incur additional costs associated with compliance with these disclosure requirements, including time-consuming and costly efforts to determine the source of any conflict minerals used in our products.
|
•
|
The global market for mono
Bluetooth
headsets is shrinking, which is at least partially attributable to increasing integration of
Bluetooth
systems into automobiles. The market for stereo
Bluetooth
headsets is growing rapidly, although it is dominated by lifestyle brands which we do not offer. Our market share has been and is significantly larger in the mono market than in the stereo market and it remains unclear whether we will be able to sufficiently increase share in the stereo market to continue growing in the overall market for
Bluetooth
headsets.
|
•
|
Reductions in the number of suppliers participating in the
Bluetooth
market, thereby reducing our sourcing options and potentially increasing our costs at a time when our ability to offset higher costs with corresponding product price increases is limited.
|
•
|
Difficulties retaining or obtaining shelf space and maintaining a robust and compelling eCommerce presence for consumer products in our sales channel, particularly with large "brick and mortar" retailers and Internet "etailers" as the market for mono
Bluetooth
headsets continues to contract.
|
•
|
The varying pace and scale of global economic recovery creates uncertainty and unpredictability about the demand for consumer products.
|
•
|
Our ability to maintain insight into, and quickly respond to, sudden changes in laws or regulations before our competitors.
|
•
|
Difficulties achieving or maintaining sufficient gross margin and uncertainties forecasting demand for the variety of
Bluetooth
headsets, gaming, entertainment and computer audio headsets, and new products generally within this category for which relevant data is incomplete or unavailable.
|
•
|
Competition may increase more than we expect and result in product pricing pressures.
|
•
|
Anticipate technology and market trends
|
•
|
Develop innovative new products and enhancements
|
•
|
Distinguish our products from those of our competitors
|
•
|
Create industrial designs that appeal to our customers and end-users
|
•
|
Manufacture and deliver high-quality products in sufficient volumes at acceptable margins
|
•
|
Price our products competitively
|
•
|
Hire and retain qualified personnel in the highly competitive software development field
|
•
|
Provide technical product support to our customers
|
•
|
Leverage new and existing channel partners effectively
|
•
|
Fluctuations in foreign currency exchange rates
|
•
|
Cultural differences in the conduct of business
|
•
|
Greater difficulty in accounts receivable collection and longer collection periods
|
•
|
The impact of recessionary, volatile or adverse global economic conditions
|
•
|
Reduced protection for intellectual property rights in some countries
|
•
|
Unexpected changes in regulatory requirements
|
•
|
Tariffs and other trade barriers, particularly in developing nations such as Brazil, India, and others
|
•
|
Political conditions, health epidemics, labor activity, civil unrest, or criminal activities within each country
|
•
|
The management, operation, and expenses associated with an enterprise spread over various countries
|
•
|
The burden and administrative costs of complying with a wide variety of foreign laws and regulations
|
•
|
Currency restrictions
|
•
|
Compliance with anti-bribery laws, including the United States Foreign Corrupt Practices Act and the United Kingdom's Bribery Act
|
•
|
Uncertain economic conditions, including the length and scope of the recovery from the domestic and global recession, slowing economic growth in Asia, inflationary pressures, and a potential decline in investor confidence in the market place
|
•
|
Failure to meet our forecasts or the expectations and forecasts of securities analysts
|
•
|
Changes in our published forecasts of future results of operations
|
•
|
Quarterly variations in our or our competitors' results of operations and changes in market share
|
•
|
The announcement of new products, product enhancements, or partnerships by us or our competitors
|
•
|
Our ability to develop, introduce, ship, and support new products and product enhancements and manage product transitions
|
•
|
Repurchases of our common shares under our repurchase plans or public announcement of our intention not to repurchase our common shares
|
•
|
Our decision to declare dividends or increase or decrease dividends over historical rates
|
•
|
The loss of services of one or more of our executive officers or other key employees
|
•
|
Changes in earnings estimates, recommendations, or ratings by securities analysts or a reduction in the number of analysts following our stock
|
•
|
Developments in our industry, including new or increased enforcement of existing governmental regulations related to our products and new or revised communications standards
|
•
|
Concentrated ownership of our common stock by a limited number of institutional investors that may limit liquidity for investors interested in acquiring or selling positions in our common stock, particularly substantial positions
|
•
|
Sales of substantial numbers of shares of our common stock in the public market by us, our officers or directors, or unaffiliated third parties, including institutional investors
|
•
|
General economic, political, and market conditions, including market volatility
|
•
|
Litigation brought by or against us
|
•
|
Other factors unrelated to our operating performance or the operating performance of our competitors
|
|
Total Number of Shares Purchased
1
|
|
Average Price Paid per Share
2
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
1
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
6
|
|||||
June 30, 2013 to July 27, 2013
|
43,203
|
|
3
|
$
|
44.95
|
|
|
42,400
|
|
|
604,039
|
|
July 28, 2013 to August 31, 2013
|
218,828
|
|
4
|
$
|
44.51
|
|
|
212,408
|
|
|
391,631
|
|
September 1, 2013 to September 28, 2013
|
117,080
|
|
5
|
$
|
44.44
|
|
|
116,757
|
|
|
274,874
|
|
1
|
|
On August 6, 2012, the Board of Directors authorized a new program to repurchase 1,000,000 shares of our common stock.
|
|
|
|
2
|
|
"Average Price Paid per Share" reflects open market repurchases of common stock only.
|
|
|
|
3
|
|
Includes 803 shares that were tendered to us in satisfaction of employee tax withholding obligations upon the vesting of restricted stock granted under our stock plans.
|
|
|
|
4
|
|
Includes 6,420 shares that were tendered to us in satisfaction of employee tax withholding obligations upon the vesting of restricted stock granted under our stock plans.
|
|
|
|
5
|
|
Includes 323 shares that were tendered to us in satisfaction of employee tax withholding obligations upon the vesting of restricted stock granted under our stock plans.
|
|
|
|
6
|
|
These shares reflect the available shares authorized for repurchase under the August 6, 2012 program.
|
|
|
PLANTRONICS, INC.
|
|
|
|
|
|
Date:
|
October 29, 2013
|
By:
|
/s/ Pamela Strayer
|
|
|
Name:
|
Pamela Strayer
|
|
|
Title:
|
Senior Vice President and Chief Financial Officer
|
1 Year Plantronics Chart |
1 Month Plantronics Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions