Plantronics, Inc. ( POLY Quick Quote POLY - Free Report) reported mixed second-quarter fiscal 2022 results, wherein the bottom line beat the Zacks Consensus Estimate but the top line missed the same. Despite global supply chain pressures, including semiconductor chip shortages and transportation constraints, Poly (the name under which Plantronics markets itself) remains focused on managing its profitability while continuing to invest in areas of accelerating growth. Net Income
On a GAAP basis, net income in the quarter was $96.8 million or $2.21 per share against a net loss of $13.4 million or a loss of 33 cents per share in the prior-year quarter. The significant improvement mainly resulted from a higher operating income and an income tax benefit of $102.6 million.
Non-GAAP net income was $33.5 million or 77 cents per share compared with $38.4 million or 93 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 22 cents, delivering a surprise of 40%. Revenues
Quarterly GAAP revenues grew 2% year over year to $419 million. Product revenues increased 4% to $361.4 million. Services revenues were $57.6 million, down from $63.3 million. The top line, however, missed the consensus estimate of $425 million.
The demand environment remained strong as businesses prepared for return to office by modernizing their communications infrastructure. This is reflected by year-over-year revenue growth of 36% in voice and 15% in video. However, professional headsets revenues declined 5%. Quarterly non-GAAP revenues were $420.1 million, up from $415.2 million a year ago. Other Details
Gross profit declined to $179.7 million from $180.7 million in the prior-year quarter, with respective margins of 42.9% and 44%. Total operating expenses decreased to $169.3 million from $173.9 million. Operating income increased to $10.4 million from $6.8 million a year ago. Adjusted EBITDA declined to $61.5 million from $69 million.
Cash Flow & Liquidity
During the first six months of fiscal 2022, Poly utilized $0.2 million of cash from operating activities against a cash generation of $40.3 million in the prior-year period.
As of Oct 2, 2021, the company had $191.9 million in cash and cash equivalents with $1,498.2 million of long-term debt. Outlook
Poly expects to continue experiencing tightness and volatility in its supply chain, which, in turn, could compromise near-term visibility. It has provided guidance for full fiscal-year 2022 rather than specific ranges for the fiscal third quarter.
For the fiscal year, Poly expects GAAP revenues between $1.675 billion and $1.725 billion. Adjusted EBITDA is anticipated in the range of $220 million to $240 million. Non-GAAP earnings per share are estimated between $2.30 and $2.70. Zacks Rank & Stocks to Consider
Poly currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry are Ooma, Inc. ( OOMA Quick Quote OOMA - Free Report) , Ubiquiti, Inc. ( UI Quick Quote UI - Free Report) , and SeaChange International, Inc. ( SEAC Quick Quote SEAC - Free Report) . While Ooma sports a Zacks Rank #1 (Strong Buy), Ubiquiti and SeaChange carry a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here Ooma delivered a trailing four-quarter earnings surprise of 55.2%, on average. Ubiquiti pulled off a trailing four-quarter earnings surprise of 20.5%, on average. SeaChange delivered a trailing four-quarter earnings surprise of 28.9%, on average.