Plantronics Boosts Q4 Revenue Outlook; Suspends Dividend - Quick Facts

(RTTNews) - Plantronics Inc. (PLT), formerly Plantronics and Polycom, on Wednesday raised its revenue forecast for the fourth quarter to a range of $395 million to $405 million from the prior outlook range between $354 million and $394 million, due to the uptick in demand for its enterprise headsets and other products amid the coronavirus (COVID-19) outbreak-related stay-at-home and work-from-home orders.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $357.67 million for the quarter.

Poly said it saw a near-term increase in demand for its enterprise headsets, due to the widespread mandatory stay-at-home orders across the globe that have created a surge in the number of individuals working from home or from remote locations. The increase in demand also caused channel inventories to decline in the quarter.

To further preserve financial flexibility, Poly's Board of Directors has authorized the suspension of the quarterly dividend, resulting in approximately $25 million of annualized cash savings.

The company is also taking actions to reduce expenses and right-size its overall cost structure to be better aligned with projected revenue levels. It anticipates it will incur a one-time restructuring charge associated with these actions in its first fiscal quarter of 2021.