Plantronics posts low profits

by Jack Bibey | Tuesday, Jan 31, 2012 | 353 views

Telephone maker plantronics announced its quarterly results. Profits have fallen when compared to previous year. However, profits have been better than analyst’s expectations. Top line for the quarter ending was $30.9 million, or 71 cents a share. This was  down when compared to previous year which stood at $31.6 million, or 64 cents a share a year ago. Adjusted net income was 75 cents per share, topping analyst’s forecasts of 68 cents per share, and topping last year’s adjusted income of 66 cents per share. Profits were also lower due to the company’s buy back.

Plantronics makes headsets and other specialty equipment for phones. It said revenue can be difficult to predict because it sells on a “book and ship” business model, shipping most products within 48 hours of being ordered.

The company has also declared that it expects a strong fourth quarter with forecasted revenue of $175 million to $ 180 million and a net income of 64 cents a share. Commenting on the results CEO Ken Kannappan said the company set a record in the quarter for UC revenue, which saw 90 percent growth due to rapid adoption of UC globally. The company also saw 8 percent growth in office and contact center revenue.

“We continue to see broad adoption of UC across all size of enterprises in all major geographies,” he said. “Our investments in UC continued to yield solid results. And, in the first nine months of fiscal 2012, we made good progress in differentiating our product line, as well as making huge strides in our corporate marketing and brand positioning.”

We maintain a negative outlook on the stock as there is a decreased consumer spending at the moment. This will translate in negative growth for the company over the next few quarters.


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