PLANTRONICS, INC. (NYSE:PLT) Files An 8-K Regulation FD Disclosure

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PLANTRONICS, INC. (NYSE:PLT) Files An 8-K Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure

In June 2017, Plantronics, Inc. (“Plantronics” or the “Company”) took additional actions in its efforts to continue cost management and improve profitability. The Company has taken several cost-saving actions during the quarter, including a reduction-in-force and the sale of its Clarity division. The actions taken during the quarter are expected to result in cost-savings over the long term of approximately $15 million to $16 million per year. Individually, none of the actions are material to the Company’s business or results of operations. The Company’s targeted profitability for Fiscal Year 2018 as discussed in its May 1, 2017 earnings announcement is unchanged.
The Company expects to close the sale of Clarity at the end of the first quarter or early in the second quarter of Fiscal Year 2018. This action will reduce Fiscal Year 2018 net revenues by approximately $13 million after the sale closes, or $17 million on a pro-forma basis for the full year, and result in a negligible change in operating income. In connection with the sale, the Company will record an immaterial charge for inventory and fixed asset impairments.
In the aggregate, we believe these actions support our ability to focus on long-term growth opportunities and strategic initiatives, where we expect the key driver to be Unified Communications audio solutions and software-as-a-service within the Enterprise market.

About PLANTRONICS, INC. (NYSE:PLT)

Plantronics, Inc. (Plantronics) is engaged in the design, manufacture, and distribution of headsets for business and consumer applications, and other specialty products for the hearing impaired. The Company is a global designer, manufacturer and marketer of communications headsets, telephone headset systems, other communication endpoints and accessories for the business and consumer markets. The Company develops communication products for offices and contact centers, mobile devices, cordless phones, and computers and gaming consoles. Its product categories include Enterprise, which includes corded and cordless communication headsets, audio processors, and telephone systems, and Consumer, which includes Bluetooth and corded products for mobile device applications, personal computer (PC) and gaming headsets, and specialty products marketed for hearing impaired individuals. It offers its products under two brands: Plantronics and Clarity.

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