Surge in Bluetooth Headset Sales Drive Record Audio Communications Group Revenue; Revenue and Earnings per Share Exceed Guidance
Plantronics, Inc. (NYSE: PLT) today
announced first quarter fiscal 2009 net revenues of $219.2 million compared
with $206.5 million in the first quarter of fiscal 2008. Revenues were
above the guidance range of $205 to $210 million. Plantronics' GAAP
diluted earnings per share were $0.42 in the first quarter of fiscal 2009
compared with $0.31 in the same quarter of the prior year. This compares
to the GAAP EPS guidance issued on April 29, 2008 of $0.26 to $0.30.
Non-GAAP diluted earnings per share for the current quarter were $0.45
compared with $0.37 in the first quarter of fiscal 2008. Earnings per
share were greater than the previously provided non-GAAP guidance of $0.33
to $0.36. The differences between GAAP and non-GAAP earnings per share for
the current quarter are primarily the cost of equity-based compensation and
a $1.7 million tax benefit resulting from the expiration of the statute of
limitations in certain jurisdictions on previous tax filings.
"Our June quarter results reflect strong Bluetooth headset demand primarily
as a result of California and Washington adopting hands-free driving laws
on July 1, 2008. Enterprise market conditions grew weaker in the U.S. and
Europe as the slowdown in the U.S. financial services sector spread to
other industries and geographies. Despite the higher mix of lower margin
Bluetooth products, a significant improvement in gross margin on our
consumer products compensated, resulting in a higher overall company
operating margin and an operating profit increase of 25% from the same
quarter last year," said Ken Kannappan, President and CEO. "We are pleased
with the better than expected retail placements for our soon to be
announced Altec Lansing products. Overall, we remain optimistic about our
long-term prospects and ability to enhance shareholder value," stated
Kannappan.
Audio Communications Group (ACG) Non-GAAP Results
(Office & Contact Center, Mobile, Computer, Clarity)
First quarter net revenues of $198.5 million were up 7% compared with
$185.6 million in the year-ago quarter. Revenue growth compared to the
year-ago quarter was driven by strong demand for Bluetooth headsets of
$55.2 million, up 52% from the prior year, and Gaming & Computer products
of $9.6 million, up 48% from the prior year. Office and Contact Center
(OCC) revenues were $122.8 million, down 7% from the previous year due to
continued weakness in North American markets and flat sales in Europe.
Gross margin in the first quarter of fiscal 2009 was 45.2% compared with
46.6% in the year-ago quarter. The lower gross margin was due to a product
mix shift, with substantially higher sales of lower gross margin Bluetooth
headsets and a decline in higher margin Office and Contact Center headsets.
However, the impact of this product mix shift was largely offset by
substantial improvement in the gross margin on our Bluetooth products as
well as some improvement in our OCC products. Operating income increased
0.6% to $33.0 million, and the operating margin was 16.6% compared with
17.7% in the year-ago quarter primarily as a result of the lower gross
margin.
Audio Entertainment Group (AEG) Non-GAAP Results
(Altec Lansing)
First quarter net revenues of $20.6 million were down 1.4% from $20.9
million in the year-ago quarter. However, these results are not directly
comparable as the year ago figures included approximately $1.7 million of
PC & Gaming headset revenue which at that time was managed by AEG and sold
under the Altec Lansing brand. Responsibility for all PC & Gaming
headsets, regardless of the brand used, was transferred to ACG effective
July 1 last year. Gross margin was 8.4% compared with negative 10.6% in
the year-ago quarter and the division's operating loss was $6.0 million
compared with $10.8 million.
While the turn-around of this division remains heavily dependent on a
refreshed product portfolio, other steps have been taken in the past year
to return the division to profitability, including the consolidation of
manufacturing operations, a reduction in headcount and other cost
reductions. The focus on cost reduction enabled the division to operate on
expenses 10% lower than the year-ago quarter. Placements of the new
products for the Fall launch are going well and supply plans to meet the
expected demand are in place. Plantronics continues to target profitability
for the division by the December quarter of this calendar year and intends
to introduce new products during the current quarter.
Balance Sheet and Cash Flow
Our balance sheet is strong with $190.2 million in cash and cash
equivalents as of June 30, 2008 compared with $163.1 million in the
previous quarter.
First quarter fiscal 2009 cash flow from operations was approximately $34
million compared with $13 million in the first quarter of fiscal 2008. In
addition, key metrics such as inventory turns were 3.7 in the current
quarter compared with 3.6 in the first quarter of fiscal year 2008. In
addition, key metrics such as days sales outstanding were 54 days in the
current quarter compared to 53 days in same quarter of the prior fiscal
year.
Business Outlook
The following statements are based on current expectations. As described
in "Safe Harbor" below, many of these statements are forward-looking.
Actual results are subject to a variety of risks and uncertainties and may
differ materially from the forward-looking statements.
We have a "book and ship" business model whereby we ship most orders to our
customers within 48 hours of our receipt of those orders, and we thus
cannot rely on the level of backlog to provide visibility into potential
future revenues. Our business is inherently difficult to forecast, and
there can be no assurance that the incoming orders we expect to receive
over the balance of the quarter will materialize. With increasing economic
uncertainty, our business is even more difficult to forecast than usual.
The September quarter tends to be characterized by a slowdown in incoming
purchase orders during July which intensifies in August, but historically
picks up strongly after Labor Day. This pattern tends to be particularly
true in our highest margin office and contact center business. This trend
has begun to manifest itself in the current quarter, and we need the
historical pick up in September to recur to achieve the revenue levels we
are forecasting. Sequentially, we are currently expecting revenues for ACG
to be flat to down, and AEG to increase somewhat in the second quarter.
Subject to the foregoing, we are currently expecting the following
financial results for the second quarter of fiscal 2009:
-- Net revenues for the second quarter of fiscal 2009 to be in the range
of $210 - $220 million;
-- Non-GAAP consolidated tax rate to be between 23%-24%;
-- Non-GAAP earnings per share for the second quarter of fiscal 2009 to
be in the range of $0.35 - $0.40; and
-- The EPS cost of equity compensation pursuant to FAS 123(R) to be
approximately $0.06, resulting in
-- GAAP earnings per share of $0.29 to $0.34.
Plantronics does not intend to update these targets during the quarter or
to report on its progress toward these targets. Plantronics will not
comment on these targets to analysts or investors except by its next press
release announcing its second quarter fiscal year 2009 results or by other
public disclosure. Any statements by persons outside Plantronics
speculating on the progress of the second quarter fiscal year 2009 will not
be based on internal company information and should be assessed accordingly
by investors.
Conference Call Scheduled to Discuss Financial Results
Plantronics has scheduled a conference call to discuss the contents of this
release. The conference call will take place today, Tuesday, July 22 at
2:00 PM (PDT). All interested investors and potential investors in
Plantronics stock are invited to participate. To listen to the call, please
dial in five to ten minutes prior to the scheduled starting time and refer
to the "Plantronics Conference Call." Participants from North America
should call (888) 301-8736 and other participants should call (706)
634-7260.
A replay of the call with the conference ID #20286967 will be available for
72 hours at (800) 642-1687 for callers from North America and at (706)
645-9291 for all other callers. The conference call will also be
simultaneously web cast at www.plantronics.com under Investor Relations,
and the web cast of the conference call will remain available at the
Plantronics Web site for thirty days.
A new corporate presentation is available on the investor relations section
of the corporate website www.plantronics.com.
Use of Non-GAAP Financial Information
Plantronics excludes non-recurring transactions and non-cash expenses such
as stock-based compensation related to stock options, awards and employee
stock purchases from non-GAAP net income, non-GAAP earnings per diluted
share, non-GAAP operating income, non-GAAP operating margin and non-GAAP
effective tax rate. Plantronics excludes these expenses from its non-GAAP
measures primarily because Plantronics does not believe they are reflective
of ongoing operating results and are not part of its target operating
model. Plantronics believes that the use of non-GAAP financial measures
provides meaningful supplemental information regarding its performance and
liquidity, and helps investors compare actual results to its long-term
target operating model goals. Plantronics believes that both management and
investors benefit from referring to these non-GAAP financial measures in
assessing its performance and when planning, forecasting and analyzing
future periods.
SAFE HARBOR
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Exchange Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Specific
forward-looking statements include our profitability target of the December
2008 calendar quarter for our AEG business; our intention to introduce new
AEG products during the current calendar quarter; our ability to timely
supply new products to the market place to meet demand for our new AEG
products; our estimates of net revenues, margins, operating expenses, tax
rate and earnings for the second quarter of fiscal year 2009. These
forward-looking statements involve a number of risks and uncertainties, and
are based on current information and management judgment. Plantronics does
not assume any obligation to update or revise any such forward-looking
statements, whether as the result of new developments or otherwise.
Among the factors that could cause actual results to differ materially from
those projected are:
-- Our operating results are difficult to predict, particularly in light
of the current economic conditions in both the domestic and
international markets;
-- We do not know how the market for office wireless headsets and products
from our other product groups may be affected in the event of a
recession in the United States or global economy;
-- We have experienced cost increases from our suppliers and in light of
the cost of oil, food supplies and other products in the United States
and around the world, we may continue to receive cost increases, which
could negatively affect profitability and/or market share.
-- The ability to achieve the turnaround of AEG is uncertain because:
-- it is dependent upon our ability to more effectively research and
implement features in our AEG products that consumers want and are
willing to purchase;
-- we must be able to meet the market windows for these products;
-- we must be able to retain or obtain the shelf space for these
products in our sales channel;
-- we must retain or improve the brand recognition associated with
the Altec Lansing brand during the turnaround;
-- our ability to successfully complete the restructuring and
consolidation activities and the financial impact that such
actions may have is difficult to predict;
-- there is a risk that the consolidation of the AEG Asian operations
may cost more than we currently expect. There is also a risk that
the savings that we currently predict may not materialize and that
the timing of costs and benefits may be different than what we
currently expect. If the cost of consolidation is more than we
currently anticipate or the savings that we currently anticipate
from these activities do not materialize, our future financial
results may be adversely affected; and
-- Failure to achieve any of these objectives may adversely affect
our financial results;
-- We have significant intangible assets and goodwill recorded on our
balance sheet. If the carrying value of our intangible assets and
goodwill is not recoverable, an impairment loss must be recognized
which would adversely affect our financial results;
-- The market for our products is characterized by rapidly changing
technology, short product life cycles, and frequent new product
introductions, and we may not be able to develop, manufacture or
market new products in response to changing customer requirements
and new technologies;
-- The actions of existing and/or new competitors, especially with
regard to pricing and promotional programs;
-- Product mix is difficult to estimate and standard margin varies
considerably by product;
-- Failure to match production to demand given long lead times and the
difficulty of forecasting unit volumes and acquiring the component
parts to meet demand without having excess inventory or incurring
cancellation charges;
-- The inability to successfully develop, manufacture and market new
products and achieve volume shipment schedules to meet demand;
-- A softening of the level of market demand for our products;
-- Variations in sales and profits in higher tax, as compared to lower
tax, jurisdictions;
-- Fluctuations in foreign exchange rates;
-- Class action lawsuits are being brought against us and other Bluetooth
headset manufacturers claiming "noise induced hearing loss," which are
costly to defend and the results of litigation are not predictable;
-- Changes in the regulatory environment either as to headsets directly or
as to the products, such as mobile phones, with which our products are
used; and
-- Additional risk factors include: changes in the timing and size of
orders from our customers, price erosion, increased requirements from
retail customers for marketing and advertising funding, interruption in
the supply of sole-sourced critical components, continuity of component
supply at costs consistent with our plans, failure of our distribution
channels to operate as we expect, failure to develop products that keep
pace with technological changes, the inherent risks of our substantial
foreign operations, problems which might affect our manufacturing
facilities in Mexico or in China, and the loss of the services of key
executives and employees.
For more information concerning these and other possible risks, please
refer to the Company's Annual Report on Form 10-K filed May 27, 2008,
quarterly reports filed on Form 10-Q and other filings with the Securities
and Exchange Commission as well as recent press releases. These filings can
be accessed over the Internet at
http://www.sec.gov/edgar/searchedgar/companysearch.html
Financial Summaries
The following related charts are provided:
-- Summary Unaudited Condensed Consolidated Financial Statements
-- Summary Unaudited Condensed Statements of Operations by Segment
-- Unaudited GAAP to Non-GAAP Statements of Operations Reconciliations
for the three months ended June 30, 2008 and June 30, 2007
-- Summary Unaudited Statements of Operations and Related Data on a Non-
GAAP Basis
About Plantronics
In 1969, a Plantronics headset carried the historic first words from the
moon: "That's one small step for man, one giant leap for mankind." Since
then, Plantronics has become the headset of choice for mission-critical
applications such as air traffic control, 911 dispatch, and the New York
Stock Exchange. Today, this history of Sound Innovation® is the basis
for every product we build for the office, contact center, personal mobile,
entertainment and residential markets. The Plantronics family of brands
includes Plantronics, Altec Lansing, Clarity, and Volume Logic. For more
information, go to www.plantronics.com or call (800) 544-4660.
Altec Lansing, Clarity, Plantronics, Sound Innovation, Volume Logic and
AudioIQ are trademarks or registered trademarks of Plantronics, Inc. All
other trademarks are the property of their respective owners.
PLANTRONICS, INC.
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share data)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
June 30,
--------------------
2007 2008
--------- ---------
Net revenues $ 206,495 $ 219,164
Cost of revenues 122,949 128,285
--------- ---------
Gross profit 83,546 90,879
Gross profit % 40.5% 41.5%
Research, development and engineering 19,488 19,695
Selling, general and administrative 46,111 48,398
Restructuring and other related charges - 375
--------- ---------
Total operating expenses 65,599 68,468
--------- ---------
Operating income 17,947 22,411
Operating income % 8.7% 10.2%
Interest and other income (expense), net 1,334 1,540
--------- ---------
Income before income taxes 19,281 23,951
Income tax expense 4,306 3,457
--------- ---------
Net income $ 14,975 $ 20,494
========= =========
% of net revenues 7.3% 9.4%
Diluted earnings per common share $ 0.31 $ 0.42
Shares used in diluted per share calculations 48,681 49,245
Tax rate 22.3% 14.4%
UNAUDITED CONSOLIDATED BALANCE SHEETS
March 31, June 30,
2008 2008
--------- ---------
ASSETS
Cash and cash equivalents $ 163,091 $ 190,188
Accounts receivable, net 131,493 130,530
Inventory 127,088 136,974
Deferred income taxes 13,760 13,763
Other current assets 14,771 13,623
--------- ---------
Total current assets 450,203 485,078
Long-term investments 25,136 24,205
Property, plant and equipment, net 98,530 98,231
Intangibles, net 91,511 89,505
Goodwill 69,171 69,171
Other assets 6,842 6,429
--------- ---------
$ 741,393 $ 772,619
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 47,896 $ 63,032
Accrued liabilities 67,318 60,352
Income taxes payable - 2,416
--------- ---------
Total current liabilities 115,214 125,800
Deferred tax liability 32,570 31,494
Long-term income taxes payable 14,137 12,982
Other long-term liabilities 852 824
--------- ---------
Total liabilities 162,773 171,100
Stockholders' equity 578,620 601,519
--------- ---------
$ 741,393 $ 772,619
========= =========
AUDIO COMMUNICATIONS GROUP
SUMMARY CONDENSED FINANCIAL STATEMENTS
(in thousands)
UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended
June 30,
----------------------
2007 2008
---------- ----------
Net revenues $ 185,572 $ 198,527
Cost of revenues 99,796 109,357
---------- ----------
Gross profit 85,776 89,170
Gross profit % 46.2% 44.9%
Research, development and engineering 16,784 17,197
Selling, general and administrative 40,006 42,950
---------- ----------
Total operating expenses 56,790 60,147
---------- ----------
Operating income $ 28,986 $ 29,023
Operating income % 15.6% 14.6%
AUDIO ENTERTAINMENT GROUP
SUMMARY CONDENSED FINANCIAL STATEMENTS
(in thousands)
UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended
June 30,
----------------------
2007 2008
---------- ----------
Net revenues $ 20,923 $ 20,637
Cost of revenues 23,153 18,928
---------- ----------
Gross profit (loss) (2,230) 1,709
Gross profit (loss) % (10.7%) 8.3%
Research, development and engineering 2,704 2,498
Selling, general and administrative 6,105 5,448
Restructuring and other related charges - 375
---------- ----------
Total operating expenses 8,809 8,321
---------- ----------
Operating loss $ (11,039) $ (6,612)
Operating loss % (52.8%) (32.0%)
PLANTRONICS, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Three Months Ended
June 30, 2007 June 30, 2008
---------------------------- ----------------------------
GAAP Excluded Non-GAAP GAAP Excluded Non-GAAP
-------- -------- -------- -------- -------- --------
Net revenues $206,495 $ - $206,495 $219,164 $ - $219,164
Cost of
revenues 122,949 (641)(1) 122,308 128,285 (654)(1) 127,631
-------- ------- -------- -------- ------- --------
Gross profit 83,546 641 84,187 90,879 654 91,533
Gross profit % 40.5% 40.8% 41.5% 41.8%
Research,
development
and
engineering 19,488 (928)(1) 18,560 19,695 (984)(1) 18,711
Selling,
general and
administrative 46,111 (2,544)(1) 43,567 48,398 (2,630)(1) 45,768
Restructuring
and other
related
charges - - - 375 (375)(2) -
-------- ------- -------- -------- ------- --------
Total
operating
expenses 65,599 (3,472) 62,127 68,468 (3,989) 64,479
-------- ------- -------- -------- ------- --------
Operating
income 17,947 4,113 22,060 22,411 4,643 27,054
Operating
income % 8.7% 10.7% 10.2% 12.3%
Interest and
other income
(expense), net 1,334 - 1,334 1,540 - 1,540
-------- ------- -------- -------- ------- --------
Income before
income taxes 19,281 4,113 23,394 23,951 4,643 28,594
Income tax
expense 4,306 1,309 (3) 5,615 3,457 3,120 (4) 6,577
-------- ------- -------- -------- ------- --------
Net income $ 14,975 $ 2,804 $ 17,779 $ 20,494 $ 1,523 $ 22,017
======== ======= ======== ======== ======= ========
% of net
revenues 7.3% 8.6% 9.4% 10.0%
Diluted
earnings per
common share $ 0.31 $ 0.06 $ 0.37 $ 0.42 $ 0.03 $ 0.45
Shares used in
diluted per
share
calculations 48,681 48,681 48,681 49,245 49,245 49,245
AUDIO COMMUNICATIONS GROUP
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands)
UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended Three Months Ended
June 30, 2007 June 30, 2008
---------------------------- ----------------------------
GAAP Excluded Non-GAAP GAAP Excluded Non-GAAP
-------- -------- -------- -------- -------- --------
Net revenues $185,572 $ - $185,572 $198,527 $ - $198,527
Cost of revenues 99,796 (623)(1) 99,173 109,357 (624)(1) 108,733
-------- ------- -------- -------- ------- --------
Gross profit 85,776 623 86,399 89,170 624 89,794
Gross profit % 46.2% 46.6% 44.9% 45.2%
Research,
development and
engineering 16,784 (893)(1) 15,891 17,197 (942)(1) 16,255
Selling, general
and
administrative 40,006 (2,348)(1) 37,658 42,950 (2,453)(1) 40,497
-------- ------- -------- -------- ------- --------
Total operating
expenses 56,790 (3,241) 53,549 60,147 (3,395) 56,752
-------- ------- -------- -------- ------- --------
Operating
income $ 28,986 $ 3,864 $ 32,850 $ 29,023 $ 4,019 $ 33,042
Operating
income % 15.6% 17.7% 14.6% 16.6%
AUDIO ENTERTAINMENT GROUP
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands)
UNAUDITED STATEMENTS OF OPERATIONS
Three Months Ended Three Months Ended
June 30, 2007 June 30, 2008
-------------------------- ---------------------------
GAAP Excluded Non-GAAP GAAP Excluded Non-GAAP
-------- ------- -------- -------- ------- ---------
Net revenues $ 20,923 $ - $ 20,923 $ 20,637 $ - $ 20,637
Cost of revenues 23,153 (18)(1) 23,135 18,928 (30)(1) 18,898
-------- ----- -------- -------- ----- ---------
Gross profit
(loss) (2,230) 18 (2,212) 1,709 30 1,739
Gross profit
(loss) % (10.7%) (10.6%) 8.3% 8.4%
Research,
development and
engineering 2,704 (35)(1) 2,669 2,498 (42)(1) 2,456
Selling, general
and
administrative 6,105 (196)(1) 5,909 5,448 (177)(1) 5,271
Restructuring and
other related
charges - 375 (375)(2) -
-------- ----- -------- -------- ----- ---------
Total operating
expenses 8,809 (231) 8,578 8,321 (594) 7,727
-------- ----- -------- -------- ----- ---------
Operating loss $(11,039)$ 249 $(10,790) $ (6,612)$ 624 (5,988)
Operating loss% (52.8%) (51.6%) (32.0%) (29.0%)
(1) Excluded amount represents stock-based compensation.
(2) Excluded amount represents restructuring and other related charges.
(3) Excluded amount represents tax benefit from stock-based compensation.
(4) Excluded amount represents tax benefit from stock-based compensation,
restructuring and other related charges and $1,735 related to a tax
benefit from expiration of certain statutes of limitations.
Use of Non-GAAP Financial Information
To supplement our consolidated financial statements presented on a GAAP
basis, Plantronics uses non-GAAP measures of operating results, which are
adjusted to exclude non-cash expenses, such as the impact of all stock-
based compensation charges under FAS 123R, and non-recurring transactions
that Plantronics does not believe are reflective of ongoing operating
results and are not part of its target operating model. At the segment
level, we have presented non-GAAP statements that only show our results to
the operating income line. On a consolidated basis, we have presented full
non-GAAP statement of operations. The non-GAAP financial measures should
not be considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP, and the financial results calculated in
accordance with GAAP and the reconciliations to those financial statements
should be carefully evaluated. The non-GAAP financial measures used by the
company may be calculated differently from, and therefore may not be
comparable to, similarly titled measures used by other companies.
Summary of Unaudited Statements of Operations and Related Data (1)
Q108 Q208 Q308 Q408 FY08 Q109
Net revenues $206,495 $208,224 $232,824 $208,743 $856,286 $219,164
Cost of
revenues 122,308 122,639 138,458 120,785 504,190 127,631
Gross profit 84,187 85,585 94,366 87,958 352,096 91,533
Gross profit % 40.8% 41.1% 40.5% 42.1% 41.1% 41.8%
Research,
development
and
engineering 18,560 18,353 18,450 18,067 73,430 18,711
Selling,
general and
administrative 43,567 43,659 45,807 46,157 179,190 45,768
Operating
expenses 62,127 62,012 64,257 64,224 252,620 64,479
Operating
income 22,060 23,573 30,109 23,734 99,476 $ 27,054
Operating
income % 10.7% 11.3% 12.9% 11.4% 11.6% 12.3%
Income before
income taxes 23,394 25,366 32,293 24,277 105,330 28,594
Income tax
expense 5,615 6,087 7,410 3,099 22,211 6,577
Income tax
expense as a
percent
of income
before taxes 24.0% 24.0% 22.9% 12.8% 21.1% 23.0%
Net income $ 17,779 $ 19,279 $ 24,883 $ 21,178 $ 83,119 $ 22,017
Diluted shares
outstanding 48,681 49,310 49,533 48,994 49,090 49,245
EPS $ 0.37 $ 0.39 $ 0.50 $ 0.43 $ 1.69 $ 0.45
Net revenues
from
unaffiliated
customers:
Audio
Communication
Group
Office and
Contact
center $132,205 $131,357 $131,017 $125,379 $519,958 $122,803
Mobile 41,238 35,859 48,788 45,995 171,880 59,882
Gaming and
Computer 6,485 8,277 10,449 8,401 33,612 9,621
Other
specialty
products 5,644 5,554 5,701 5,586 22,485 6,221
Audio
Entertainment
Group 20,923 27,177 36,869 23,382 108,351 20,637
Net revenues by
geographic
area
from
unaffiliated
customers:
Domestic $131,108 $126,399 $139,106 $124,535 $521,148 $134,402
Internation-
al 75,387 81,825 93,718 84,208 335,138 84,762
Balance Sheet
accounts and
metrics:
Accounts
receivable,
net $121,705 $128,705 $136,550 $131,493 $131,493 $130,530
Days sales
outstanding 53 56 53 57 54
Inventory, net $136,253 $133,516 $131,320 $127,088 $127,088 $136,974
Inventory turns 3.6 3.7 4.2 3.8 3.7
(1) Non-GAAP.
FOR INFORMATION, CONTACT:
Greg Klaben
Vice President of Investor Relations
(831) 458-7533
