Plantronics (PLT) Q3 2012 Earnings Call January 31, 2012 5:00 pm ET Executives Greg Klaben - Vice President of Investor Relations S. Kenneth Kannappan - Chief Executive Officer, President and Executive Director Barbara V. Scherer - Chief Financial Officer, Principal Accounting Officer and Senior Vice President of Finance & Administration Analysts John F. Bright - Avondale Partners, LLC, Research Division Joanna Makris - Mizuho Securities USA Inc., Research Division Tavis C. McCourt - Morgan Keegan & Company, Inc., Research Division Unknown Analyst Presentation Operator
We will be discussing non-GAAP measures during today's call, and we reconcile these measures in our earnings press release and in our quarterly metric sheet, both available on the Investor Relations section of the Plantronics website.Plantronics' third quarter fiscal 2012 net revenues were $183.2 million compared with guidance provided on November 1, 2011, of $175 million to $185 million. Plantronics' GAAP diluted earnings per share was $0.71 compared with $0.64 in the same quarter of the prior year. Non-GAAP diluted earnings per share for the third quarter of fiscal 2012 is $0.75 compared with $0.66 in the prior year and guidance of $0.60 to $0.70. The difference between GAAP and non-GAAP earnings per share for the third quarter include stock-based compensation charges net of the associated tax impact and a tax benefit from the expiration of certain statutes of limitation. With that, I'll turn the call over to Ken. S. Kenneth Kannappan Thank you, Greg, and thanks to all of you for taking the time to join us. There are 3 key points I'd like to review on our first -- on our third quarter results. The first is our record financial results, the second is our progress on Unified Communications or UC portfolio and our continued success in the growing UC market. And finally, I'll review how Plantronics has embraced Smarter Working. First, we achieved some key records in the third quarter, including another record quarter of Unified Communications revenue, record operating income and record earnings per share. Our Office and Contact Center revenue grew by a healthy 8% from the same quarter last year, driven by UC and record EMEA revenues, this was partly offset by weakness in the Americas. Despite growth in our core Office and Contact Center product group, our top line revenue grew by just 1% compared with last year due to the continued weakness in our consumer lines. However, our market share is stabilizing in mobile in the U.S., largely a result of strong sales of our new Voyager Pro HD and Marque M155 Bluetooth headsets.
Second, Unified Communications technology continues to be adopted briskly around the globe, driving our UC revenue growth nearly 90% year-over-year. We continue to see broad adoption of UC across all size of enterprises in all major geographies. Our investments in UC continued to yield solid results. And in the first 9 months of fiscal 2012, we made good progress in differentiating our product line, as well as making huge strides in our corporate marketing and brand positioning.We also grew our global sales organization to be able to better focus on the new model for UC success. We added hardware and software engineers to better meet the complex needs of the UC market, and we expanded our relationships with system integrators in the UC platform vendors. I'm very pleased with our improvements for industry-leading product portfolio. Our portfolio delivers all market requirements, including superb sound quality, comfort, style, durability, product reliability, product longevity and ease-of-use. But our solutions have gone well beyond this, breaking new ground by creating context to where intelligent audio endpoints that inform UC systems so that they are more effective, making the UC applications more intuitive and making communications work flow faster. We believe our solution set offers the best value in the market and our customers share with us as well. Here are few of the top innovations we have announced and all have been favorably received by the market. The Savi 700 Series which connects the calls from a PC, desk phone or mobile phone, and switching between all 3, as well as conferencing among them as required. The Voyager PRO UC HD, the industry's first Bluetooth device with Smart Sensors, the world class sensory noise cancelation technology, Plantronics' latest Voyager Pro is the first Bluetooth device that knows when it's on your head and automatically transfers calls accordingly. This product recently won CNET Editor's Choice. Read the rest of this transcript for free on seekingalpha.com