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Plantronics: Higher Q4 Rev, Lower Income

Santa Cruz, Calif. — Plantronics reported $750 million in revenue for fiscal year 2006, an increase of 34 percent from $560 vs. the previous year.

Of the $190 million in revenue growth, $121 million was the result of the August 2005 acquisition of Altec Lansing, whose revenues are included in the company’s Audio Entertainment Group (AEG). For the fiscal year, ended March 31, operating income was $110.4 million, compared with $126.6 million in fiscal 2005.

During the fourth quarter, net revenues increased 40 percent to $207 million, compared with $148 million in the prior year’s final quarter, with $38 million of the revenue growth derived from Altec Lansing products. Net income was $20.7 million for the fourth quarter, down from $26.1 million in the same period last year. Operating margin for the quarter dropped from 20.8 percent in the fourth quarter of 2005, to 12.5 percent during the 2006 quarter.

Ken Kannappan, president/CEO commented, “Our Audio Communications Group segment grew on the strength of our wireless headset offerings both for the office and Bluetooth mobile applications.”

For AEG, net revenues were $38 million, down from $61 million during the holiday season. The company said it “anticipated revenues to decline sharply in the March quarter” based on Altec Lansing’s “historic seasonality and the seasonality of most consumer audio companies.”

Plantronics said that while Altec Lansing maintained its market share, the revenue decrease was due to sales declines for its InMotion portable speaker line for use with iPod and other MP3 players as well as declines for powered speakers for use with PCs.