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Plantronics Shares Soar After Fiscal 4Q

The Associated Press

NEW YORK (AP) — Plantronics Inc. shares spiked Wednesday after the headset maker blew past Wall Street expectations for its fiscal fourth-quarter earnings and sales.

The Santa Cruz, Calif.-based company reported Tuesday that it lost $11 million, or 23 cents per share, reversing a year-ago profit of $17.8 million, or 36 cents per share.

Excluding one time costs, however, Plantronics made a penny per share, well above the loss of 16 cents analysts predicted, according to a Thomson Reuters survey. Analysts typically exclude special items.

Sales slipped 30 percent to $146.8 million, compared with the average estimate of just $129.6 million.

Shares soared $3.15, or 23.2 percent, to $16.72 in morning trading. The stock has traded between $7.42 and $26.70 in the past 12 months.

"The company is seeing some signs of a bottom and inventory levels appear reasonable," said Robert W. Baird analyst Reik Read, who upgraded shares Wednesday to "Outperform," from "Neutral."

He added in a note to clients, "Cost-reduction initiatives are showing signs of success."

The company announced in January it would be laying off workers and cutting salaries among other steps aimed at saving more than $50 million annually.

Plantronics reported a full-year loss of $64.9 million, or $1.34 per share, compared with a profit of $68.4 million, or $1.39 per share in fiscal 2008. Adjusted earnings for the year came to $1.02.

Annual sales fell to $765.6 million from $856.3 million.

Looking to the first quarter of the company's fiscal 2010, Plantronics is expecting adjusted earnings of 8 cents to 12 cents per share on sales of $145 million to $150 million.

Analysts are looking for a profit of 4 cents per share and sales of $137.9 million.