Plantronics, Inc. (PLT) has reported 36.43 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $22.22 million, or $0.68 a share in the quarter, compared with $16.29 million, or $0.49 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $26.07 million, or $0.79 a share compared with $27.53 million or $0.83 a share, a year ago.

Revenue during the quarter grew 3.19 percent to $232.93 million from $225.74 million in the previous year period. Gross margin for the quarter contracted 121 basis points over the previous year period to 47.30 percent. Total expenses were 86.32 percent of quarterly revenues, down from 88.20 percent for the same period last year. This has led to an improvement of 187 basis points in operating margin to 13.68 percent.

Operating income for the quarter was $31.86 million, compared with $26.65 million in the previous year period.

However, the adjusted operating income for the quarter stood at $40.72 million compared to $34.43 million in the prior year period. At the same time, adjusted operating margin improved 223 basis points in the quarter to 17.48 percent from 15.25 percent in the last year period.
 

"We achieved record Unified Communications revenues in the quarter as our strategic investment continues to drive growth and bolster our long-term position in the Enterprise category," stated Joe Burton, president and chief executive officer. "Our primary focus remains increasing long-term shareholder value through strategic investment in growth opportunities and operational efficiencies."
 

For the fourth-quarter, Plantronics projects revenue to be in the range of $213 million to $223 million. The company projects operating income to be in the range of $29 million to $34 million. The company projects adjusted operating income to be in the range of $37 million to $42 million. The company forecasts diluted earnings per share to be in the range of $0.53 to $0.63. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.69 to $0.79.

The company has spent $26.21 million cash to meet investing activities during the nine month period as against cash outgo of $118.30 million in the last year period.

The company has spent $50.33 million cash to carry out financing activities during the nine month period as against cash outgo of $42.56 million in the last year period.

Cash and cash equivalents stood at $242.46 million as on Dec. 31, 2016, up 10.67 percent or $23.37 million from $219.09 million on Dec. 31, 2015.
 

Working capital increases
Plantronics, Inc. has recorded an increase in the working capital over the last year. It stood at $538.89 million as at Dec. 31, 2016, up 5.78 percent or $29.44 million from $509.45 million on Dec. 31, 2015. Current ratio was at 6.05 as on Dec. 31, 2016, up from 5.95 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 46 days for the quarter from 68 days for the last year period. Days sales outstanding were almost stable at 56 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 22 days for the quarter compared with 45 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 33 for the same period last year.