Plantronics, Inc. announced third quarter fiscal year 2014 results. In a release on Jan. 27 , the Company noted that highlights of the quarter include: (comparisons are against the third quarter of fiscal year 2013): -Net revenues were $212.7 million , an increase of 8 percent compared with $197.4 million . -GAAP gross margin was 51.9 percent compared with 51.8 percent; non-GAAP gross margin was 52.2 percent compared with 52.2 percent due primarily to a one-time ~130 basis point net benefit to GAAP and Non-GAAP margins as a result of warranty and return material authorization adjustments, partially offset by a higher mix of lower margin consumer products. -GAAP operating income was $37.8 million compared with $34.6 million , and was above guidance of $30 million to $33 million ; non- GAAP operating income was $43.9 million compared with $41.7 million , and was above guidance of $36 million to $39 million . GAAP operating income benefited from one-time tax benefits in the quarter, which benefits are excluded from Non-GAAP operating income. -GAAP diluted earnings per share ("EPS") was $0.80 compared with $0.66 , and was above our guidance of $0.50 to $0.55 . -Non-GAAP diluted EPS was $0.76 compared with $0.73 , and was above our guidance of $0.60 to $0.65 . " Strong Unified Communications ("UC") and Mobile revenue combined with several one-time benefits and lower than anticipated expenses drove our EPS performance," said Ken Kannappan , President and CEO. "We believe we are well positioned in our major markets, with a robust product pipeline and recent advances in the emerging wearables market. We remain committed to growing earnings commensurate with revenue growth." "We generated approximately $34.5 million in cash flow from operations in the third quarter of fiscal year 2014, and our cash, cash equivalents and short and long term investments ended at approximately $429 million ," said Pam Strayer , Senior Vice President and Chief Financial Officer. "We continue to make progress in investing in our infrastructure for future growth, with the successful consolidation of our Mexican manufacturing operations to our new lower cost plant and our ERP implementation is on-track to go live in the June quarter of fiscal 2015." Office and Contact Center ("OCC") net revenues increased 5 percent to $146.6 million in the third quarter of fiscal year 2014 compared with $139.5 million in the third quarter of fiscal year 2013 driven by the strength of UC revenues, a subset of OCC. Net revenues from UC products grew by 20 percent to $43.2 million in the third quarter of fiscal year 2014 compared with $36.1 million in the third quarter of fiscal year 2013. Mobile net revenues were $52.8 million in the third quarter of fiscal year 2014, an increase of 20 percent compared with $44.1 million in the third quarter of fiscal year 2013. Dividend Announcement We also announced that our Board of Directors declared a quarterly dividend of $0.10 per share. The dividend will be payable on March 10 to stockholders of record at the close of business on Feb. 20 Business Outlook We have a "book and ship" business model whereby we fulfill the majority of orders received within 48 hours of receipt of those orders. However, our backlog is occasionally subject to cancellation or rescheduling by our customers on short notice with little or no penalty. Therefore, there is a lack of meaningful correlation between backlog at the end of a fiscal period and net revenues in a succeeding fiscal period. Our business is inherently difficult to forecast, particularly with continuing uncertainty in regional economic conditions, and there can be no assurance that expectations of incoming orders over the balance of the current quarter will materialize. Subject to the foregoing, we currently expect the following range of financial results for the fourth quarter of fiscal year 2014: -Net revenues of $200 million to $210 million ; -GAAP operating income of $30 million to $34 million ; -Non-GAAP operating income of $36 million to $40 million , excluding the impact of $6 million from stock-based compensation and purchase accounting amortization from GAAP operating income; -Assuming approximately 43.0 million diluted average weighted shares outstanding: -GAAP diluted EPS of $0.52 to $0.58 ; -Non-GAAP diluted EPS of $0.62 to $0.68 ; and -Cost of stock-based compensation and purchase accounting amortization to be approximately $0.10 per diluted share. Plantronics is a company focusing on audio communications for businesses and consumers. More information: www.plantronics.com www.plantronics.com/ir ((Comments on this story may be sent to firstname.lastname@example.org ))
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