Plantronics, Inc. (NYSE: PLT) today announced that it has completed its previous 7,000,000 share repurchase authorization announced in May 2011 and has authorized an additional 1,000,000 shares to be repurchased. We have repurchased approximately 7,700,000 shares to date during our current fiscal year. By the end of our current fiscal year on March 31, 2012, we expect to take delivery of approximately 350,000 shares under a previously authorized accelerated stock repurchase plan (“ASR”) which will then bring total repurchases to approximately 8,000,000 shares for the fiscal year. The exact quantity of shares to be delivered under the previously authorized ASR will be based generally on the daily volume-weighted average price of Plantronics’ common stock during its term.
Under the new 1,000,000 share repurchase authorization, we may from time to time purchase shares of our common stock, depending upon market conditions, in open market or privately negotiated transactions including ASRs.
“Our philosophy has been to return to our stockholders cash in excess of our operating needs, and stock repurchase programs are an excellent means of executing on this philosophy,” stated Ken Kannappan, President & CEO. “Our management team and Board of Directors have a strong conviction in our long-term growth prospects, business model and cash flow generation capability, and believe that repurchases will be accretive to our earnings per share. We are thus continuing with our commitment to repurchase our stock.”
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that we may repurchase shares of our common stock under the new 1,000,000 share repurchase authorization, that we expect to take delivery of approximately 350,000 shares of our common stock under the ASR, that delivery of the approximate 350,000 shares under the ASR is expected to occur during the fiscal year ended March 31, 2012, that we expect long-term growth and cash flow generation and that the repurchases under the new 1,000,000 share repurchase authorization will be accretive to our earnings per share. There are important risks that could cause actual results to differ materially from those anticipated by any such statements. These risks include, but are not limited to: (1) failure to achieve the anticipated levels of cash generation due to lower sales, increased costs, higher inventories, slow collection of accounts receivable or other factors including increased competition and negative macro economic conditions; (2) increases in the yield which could be obtained from alternative investment of the funds used to repurchase stock; and (3) an increased need for cash reserves beyond the levels presently anticipated, as well as other matters discussed in this press release that are not purely historical data. Plantronics does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise.