<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (date of earliest event reported): January 12, 1999
PLANTRONICS, INC.
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(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 1-12696 77-0207692
- ----------------------------- ------------------------ -------------------
(State of jurisdiction (Commission File Number) (I.R.S. Employer
incorporation or organization Identification No.)
</TABLE>
345 Encinal Street
Santa Cruz, California 95060
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(Address, including zip code, of principal executive offices)
Registrant's telephone number, including area code: 831-426-5858
Not Applicable
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(Former name or former address, if changed since last report.)
<PAGE> 2
Item 5. Other Events
On January 12, 1999, Plantronics, Inc. issued the following press release:
"[PLANTRONICS, INC. LOGO]
PRESS RELEASE
PLANTRONICS REPORTS THIRD QUARTER RESULTS -- REVENUES INCREASE 16.2% AND EPS
CLIMB 38.6%
FOR INFORMATION CONTACT: FOR IMMEDIATE RELEASE
Barbara V. Scherer January 12, 1999
Sr. Vice President and Chief Financial Officer
(831) 458-4434
================================================================================
Santa Cruz, California (January 12, 1999) -- Plantronics, Inc. (NYSE: PLT) today
announced record revenues and earnings for the third quarter of fiscal 1999
ended December 31, 1998. Third quarter revenues totaled $72.0 million, up 16.2%
over the $62.0 million of revenues in the third quarter of fiscal 1998.
Earnings increased 38.4% in the third quarter, driven by higher revenues and
higher operating margins. Net income for the quarter totaled $14.4 million, in
comparison to the $10.4 million earned in the third quarter of 1998. Diluted
earnings per share were $0.79, a 38.6% increase from the $0.57 earned in the
third quarter of the prior fiscal year on slightly fewer shares.
Ken Kannappan, President and Chief Executive Officer, commenting on the third
quarter said, "Both domestic and international business grew, with especially
good increases in the European region as a whole. We also had solid growth in
our US distribution, OEM, and retail channels. We are pleased with our overall
operating performance, having achieved higher gross and operating margins than a
year ago, faster inventory turns and a reduction in days sales outstanding of
accounts receivable. Our employees are to be commended across the board for
their fine work."
Barbara V. Scherer, SVP and CFO noted, "Our strong results and working capital
improvements helped increase the company's cash balance to $119.2 million from
$95.1 million three months ago and from $62.1 million a year ago. We also
repurchased 147,391 shares of our common stock during the quarter helping to
reduce the diluted shares outstanding in the quarter as compared to the third
quarter of the prior fiscal year." As previously announced, the Company has
called for the redemption of the $65,050,000 10% Senior Notes outstanding and
will complete that redemption on January 15, 1999. After redemption of the
Notes, which will be funded out of available cash, Plantronics will have no
long-term debt outstanding.
Plantronics introduced the first lightweight communications headset in 1962 and
is a world-leading designer, manufacturer and marketer of headset products.
Plantronics sells its products in more than 60 countries through a global
network of distributors, original equipment manufacturers, retailers and
telephony service providers.
* * * * * * * *
PLANTRONICS, INC. / 337 Encinal Street / P.O. Box 1802 / Santa Cruz, California
95061-1802
831-426-5858 / Fax 831-426-6098
<PAGE> 3
PLANTRONICS, INC.
SUMMARY CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
----------------------------- -----------------------------
December 31, December 31, December 31, December 31,
1997 1998 1997 1998
============= ============= ============= =============
<S> <C> <C> <C> <C>
Net sales $ 62,017 $ 72,038 $ 172,579 $ 213,248
Cost of sales 28,464 31,002 79,423 95,091
------------- ------------- ------------- -------------
Gross profit 33,553 41,036 93,156 118,157
Gross profit % 54.1% 57.0% 54.0% 55.4%
Research, development and engineering 4,591 5,177 12,975 14,182
Selling, general and administrative 12,330 14,563 35,172 42,425
------------- ------------- ------------- -------------
Total operating expenses 16,921 19,740 48,147 56,607
------------- ------------- ------------- -------------
Operating income 16,632 21,296 45,009 61,550
Interest expense 1,755 1,888 5,248 5,476
Interest income and other income, net (447) (1,801) (1,549) (3,494)
------------- ------------- ------------- -------------
Income before income taxes 15,324 21,209 41,310 59,568
Income tax expense 4,903 6,786 13,218 19,061
------------- ------------- ------------- -------------
Net income $ 10,421 $ 14,423 $ 28,092 $ 40,507
============= ============= ============= =============
% to Sales 16.8% 20.0% 16.3% 19.0%
Diluted earnings per common share $ 0.57 $ 0.79 $ 1.54 $ 2.22
Shares used in diluted per share calculations 18,383 18,246 18,200 18,268
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET
March 31, December 31,
1998 1998
============= =============
<S> <C> <C>
ASSETS
Cash $ 64,901 $ 119,231
Accounts receivable, net 41,550 44,317
Inventory 29,741 19,334
Deferred income taxes 2,130 4,243
Other current assets 1,774 1,390
------------- -------------
Total current assets 140,096 188,515
Property, plant and equipment, net 21,255 19,577
Other assets 4,124 3,226
------------- -------------
$ 165,475 $ 211,318
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 8,327 $ 7,420
Accrued liabilities 26,629 33,762
Income taxes payable 6,381 6,003
------------- -------------
Total current liabilities 41,337 47,185
Deferred tax liability 5,652 9,065
Long-term debt 65,050 65,050
------------- -------------
Total liabilities 112,039 121,300
Stockholder's equity 53,436 90,018
------------- -------------
$ 165,475 $ 211,318
============= =============
</TABLE>
Note: The Company's fiscal year end is the Saturday closest to March 31. For
purposes of presentation, the Company has indicated its accounting year ending
on March 31, or the month-end for interim quarterly periods. Results of
operations for fiscal years 1996, 1997 and 1998 each included 52 weeks."
<PAGE> 4
Item 7. Financial Statements and Exhibits
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits
Exhibit Number Document
-------------- --------
27.1 Financial Data Schedule
<PAGE> 5
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report on Form 8-K to be signed on its
behalf by the undersigned hereunto duly authorized.
PLANTRONICS, INC.
Dated: January 12, 1999 By: /s/ Barbara V. Scherer
---------------------------------
Barbara V. Scherer
Senior Vice President -
Finance and Administration and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 119,231
<SECURITIES> 0
<RECEIVABLES> 46,550
<ALLOWANCES> 2,233
<INVENTORY> 19,334
<CURRENT-ASSETS> 188,515
<PP&E> 39,062
<DEPRECIATION> 19,485
<TOTAL-ASSETS> 211,318
<CURRENT-LIABILITIES> 47,185
<BONDS> 65,050
0
0
<COMMON> 180
<OTHER-SE> 89,838
<TOTAL-LIABILITY-AND-EQUITY> 211,318
<SALES> 213,248
<TOTAL-REVENUES> 213,248
<CGS> 95,091
<TOTAL-COSTS> 95,091
<OTHER-EXPENSES> 56,607
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,476
<INCOME-PRETAX> 59,568
<INCOME-TAX> 19,061
<INCOME-CONTINUING> 40,507
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 40,507
<EPS-PRIMARY> 2.45
<EPS-DILUTED> 2.22
</TABLE>
