PLT - Earnings call transcript Q1 2020

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Operator

[Abrupt Start]

And I'll be your conference operator for today. At this time, I would like to welcome everyone to the Poly earnings conference call. [Operator Instructions]. Thank you.

pleasure the my Mr. over now is to program introduce to It Iburg. Mike yours. Sir, the floor is

Michael Iburg

Thank to XXXX. Jay. first Mike you, Welcome Head quarter for conference Iburg, of the call fiscal Investor year of My is Poly's name Relations. financial results

are XXXX. today's The to Unless statements and risks quarter discussed forward-looking and today uncertainties such and President Act same the recent made presentation. the comparisons harbor the and statements, are Vice related which most Burton, Boynton, presented and our prior provisions today XX-Q, CEO; The safe detailed to Private Reform and will are of otherwise earnings CFO. Joe information press Chuck in noted, Securities of discussed all XX-K Executive me be Joining and President today Litigation the includes and release under year.

to Throughout slides make specific earnings from our today's will presentation. remarks, FY 'XX we reference QX

the explanation call, financial provided nearest also we today our These refer should applicable with GAAP the an at along discussed to measures measures reconciliations website posted of investor.poly.com. measure. for to You Investor on are those non-GAAP the materials in the materials of Relations the

will Joe. over the turn With call I that, now to

Joseph Burton

identified joining us target several results quarters Mike, thank financial everyone, execution cost $XXX model. cost our year long-term synergy Poly as that X-year additional million guidance also you, savings reiterated Thanks, full QX we delivered ahead strong discipline and schedule. bottom-line driven cost today. for underpin in and and synergy by completed our We've our of

foreign the trade China, or we address headwinds, the challenges all detail. which we transitory in will June, were have -- level, and more that macro at currency of either in a several macro impacted as experienced we in revenue In quarter, by market gain in disclosed level, the in Chuck weaker tensions nature. At macro were we

Regarding transitory issues.

the completed our systems issues impacted have and we As channel quarter. integration, sales

positive seen place, and now systems partners our results. with in we've However,

In today, is Teams the products in for Microsoft markets Teams addition, transition focus while putting the the of need acceleration to solutions. the on we have Skype Teams

fully new in We participate of the to expect this are opportunity the products year. back launched in half when

As we and doing company increasing customer achieve the full newly while third, cash year achieving the first, business. flow profitability our and and three model on forward, sales following areas: the delevering execution, leveraging to product focused delivering next-generation second, improve to ease profitability is map; road targets move of implemented go-to-market our our focus guidance;

our to of at the adoption doubled growing XX% quarter, Moving sequentially product. see huddle Studio our to continue grow quarter. phones had with leading X% as market more revenues to double-digit Poly X%. to growth while headsets in rates the headset strong highlights solid UC quarter, continue a room in of the category, desktop we than growth first

success in huddle recognized in for the was vendor Poly conferencing as Research see was USB the opportunity huddle itself Studio room our With continues market. Zoom a tremendous top by to room recently in Zoom further category, on Synergy Expanding Poly Rooms. establishing certified for room, space. quickly huddle the the

with expand Poly leveraging by them We Zoom experience pleased deliver their customers best our to relationship are the solutions. incredibly and for help

architecture. videoconferencing conference sharing large first Poly content rooms, video our also solution, announced on GXXXX we next-generation and built medium the the and product For the

leveraging the this pipeline. we new have architecture lineup in of an forward, Looking exciting products new

to in turn the call discuss I'll financial more over to the Chuck detail. With that, results

Charles Boynton

Joe. Thanks,

where earnings I presentation find be deck, As the you numbers along the information. additional referencing page I'll in financials, walk with the the details through can specific

million, X% as-reported XXX% up combined lower-than-expected basis quarter As revenue Joe outlined, down an but comparative we this experienced a $XXX non-GAAP on basis. on of

strategic the by the Slide upcoming of review expected, Consumer by lower the was progressing cycle. driven geography. The well. Consumer breakdown than is business refresh and product shows console XX gaming

we before if the that will end we guarantee a consummate calendar we of transaction, a close it believe happen, the While can't year. will sale

to As the offset roughly tensions line. up Joe and mentioned, benefit directly we line impacted neutral expenses also were by in experienced a were operating bottom APAC top which Americas' impact, results line to China. sequentially directly results a by FX and in year-over-year. trade was

that see will I shortly. this was downside quarter Given million we issues incremental the of sales, China supply-side market. approximately product $XX cover minimal to

mentioned earlier, were in Finally, sales impact the by was issues that affected geographies while and Europe. the all consolidation channel largest Joe

Slide XX. points COGS expenses $XX a of to to margin mix XXX and provided million, $X primarily $XX up benefit and Operating a million synergies from favorable XX.X% revenues FX shift, benefited items. lower to our million rates down million due Gross cost nonrecurring $X basis Turning positive China profile. of margins as and synergies were Consumer were

rate expect results a above as to quarter, but sales, We percent continue run saw operating this be to decline. slightly expenses the we should of

Jumping to ahead XX. moment a for Slide

plans the to per target have we the synergy expect actual realized ahead executed by fiscal actual $XX entire we and in $XXX significantly P&L to mentioned, results, cost X-year of today's million, quarter schedule. savings million QX. of In savings of will yield Joe that million $XX As increase

that identified incremental Now than these of the we allowing $XX us executed plan, long-term the opportunities, an saving to synergy financial Having our reiterate strategic guidance and year now cost original additional we've have million of the X apparent together 'XX advantage earnings ever. companies model. is X-year fiscal integration, completed bringing on more

income XX.X%. in to margin of As XX.X% and a basis improvements margins million, XX% climbed gross $XX result operating expenses, and operating from XXX operating from improved the points

above $XXX was EBITDA record our months for XX Earnings brings the tax Moving at $X.XX, trailing to of Slide midpoint company. million, range to a which in per favorable rate. share the the EBITDA guidance and was adjusted Adjusted improved a quarter, XX%, $XX non-GAAP profitability million the up XX. due

were was which with outflows, in includes million the in liquidity, impacted significantly as cash $XX Slide be Cash operations of our our which to undrawn the $X and expected, of and quarter ended million. million $XXX right We investments, and on million quarter, to $XXX revolver. Moving integration million XX. continued $XXX flow from by target corporate roughly restructuring

to impact In cash we increased lower-than-forecasted temporary addition, as revenues to chain. inventory capital to and working Inventory levels optimize a due have continue our increase flow. in continues supply

material on restructuring We capital announced strategy to XX, we integration upstream August ability As on impact. a manufacturing us production organization stabilizes. you has payments do expect and our capacity unique leverage see platform financial tariffs cash mitigate shift not generation working see a improving our Slide a the and believe to flexible as can manufacturing that and off flexible X taper quickly. provides We recently with can

our as cash additional therefore, capital we not allocation time. We, strategy, sale critical to of the our of Consumer is while it to the business dividend at this addition, strategy. And continue In believe generate it see element a do may pending maintain we proceeds. our review appropriate

and to previously, direct year. turns to delever are by of cash leverage this of excess confident outlined achieve fiscal we can As plan X we the end

stock we However, shares with currently million repurchase shares X.X the the opportunistically current using may dislocation, price authorized.

guidance to Moving on QX. for Slide XX

to expect We $XXX revenues million GAAP of million. $XXX

of $X.XX. is million the to to to We EBITDA million. to non-GAAP million range expected million. EPS be of to expect in the range of Adjusted $XXX $X.XX $XXX in non-GAAP $XX be is And expected revenues $XXX

outlook. Looking and are while year XXXX, we fiscal lowering guidance revenue reiterating at cash our earnings

reiterate of million; billion $X.X $X.XX $X.XX EBITDA GAAP revenues million to to of we of revenue billion; to non-GAAP EPS to $X.XX non-GAAP expect adjusted billion; of billion $X.XX. and $X We $XXX $XXX

I'll turn Joe? With to over that, the back call Joe.

Joseph Burton

we speak trends the to expect we open revenue like X long-term key I'd industry the to Before the to Q&A, growth for call to drive company.

cloud-based is is to First, PBX driving in early platforms will This the increased transition years. many next-generation generate proprietary for endpoints. demand demand stages for systems from and its transition

too. Poly wins, cloud the As wins,

huddle more distractions. open in tear greater and favor the equipped long-term room, are down This like the companies repurpose communal noise like experiencing UC offer as with cancellation. employees the office of also we and fast-growing offices drives enterprise opportunities collaborative the creates of portfolio numerous walls process, spaces. existing markets headsets but increases Second, desk headsets and in broadest where In growth private markets

and workforce which collaboration remote a than before, and have need enable incremental more distributed between endpoint for a companies Third, active ever audio drives flexible video that solutions demand. creating workers,

management for can do are products leverage than their to data intelligent more simply meetings. communications that into customers key connect Customers and improve us. endpoints Finally, Poly remote generate demanding processes. and differentiators analytics be insights to to business and continue services allow their

remain Our end healthy. markets

such key partners families as rapidly, Poly recommend and product our to number phones their products continue Next-generation customers. headsets, growing Studio our desk to to VVX continue and of and Voyager grow Blackwire

our our value discipline, cash and us long-term cost create Our coupled shareholders. innovative to pipeline, for positions with

Jay? I'll that, attend to you for earnings operator all Q&A. taking call time With Thank to open today's for ask the the the call.

Operator

Instructions]. [Operator

of from comes Daryanani question first Your Evercore the line from Amit ISI.

Amit Daryanani

a couple. have I

guys basis issues? are revenue macro? resolved? of maybe you of behind was one, elaborate as confidence full out just on transitory a get XXX the how time doing little that What's points just them guys are you then I if line year bit First Maybe headwind. to issues fully you in versus that you the you XXX, they've the about the called and the can the related giving revenue that And What's talk resolved? you hoping been to these terms is could of transitory the curtailment much guys issues for

Joseph Burton

there on Joe. well. and that, can is as in started Yes. and Amit, this Chuck I'll here get chime

On side, transition. what was really, primarily for Microsoft the product Business the about talking to were we Teams Skype

great have natively Business. tend years. Skype with and native Skype that for to that. Business sell had a current been and of several for work headsets, with our with at They videoconferencing partner with Business. Today, generation Microsoft's that that products endpoints Skype products we course, phones years. the Skype We've for We the theirs They've for for sell for So the Microsoft work Business. Teams platform. is Poly, for Microsoft be

has a they have year Microsoft from with Teams, to Skype a new called support a Business announced while that our are collaboration going Microsoft products is Teams. for going don't And fully or Teams forward. platform Microsoft user to they the Microsoft compatible older were Microsoft experience. interface so different native transitioning

the a transition our of to So we frankly, later come until drop-off in little related seeing in a with year. that we're Teams bit native products revenues out

real compatible So support fully Skype already are clear, headsets natively for and Business to Teams. both and be

of to out around seeing pocket, and turn headwind. we're phone of products expect and this have the sides, where air little coming the over become On we we quarters, this a and next native actually couple video tailwind

expect as this across Overall, to we across FX related are total the this. and maybe that entire as much Makes year, sense? to the be million products $XX

Amit Daryanani

me. Yes. guess couple really I for a just helpful. That's more And

to expect in for between OpEx of $XX $XX do split the but million fully And terms perhaps that? when COGS the In realize million of versus missed new what's you savings, this, incremental I the savings?

Charles Boynton

Thanks Chuck. for it's Amit, the question.

haven't call over balanced and XX COGS We the probably between those OpEx. exact little the and It's that split it, versus months. we'll next, OpEx, a outlined COGS savings more to get

us bring And so our OpEx that down. helps

Just in quarter this a due overall some rate, terms of I than higher prepared the in mentioned events, was the little OpEx bit will it be to onetimers. as run

Operator

Your next Burns Sidoti. question of from Greg line the from comes

Gregory Burns

you over dynamic impacted us on a maybe the your in in bit from reorganization few your Europe that around perspective? outlook revenue give how kind quarters? that the color for Can headwinds transition And just the a channel little more the quarter next and of sales

Joseph Burton

cases, distributors to Very the what some of a a set distributors that do with really companies together, easy a Greg. shortly, of very single Thanks, Yes. course, contract sell to video had set Plantronics. we, Polycom. put rationalize, was different single and And a we it needed set distribution to business could customers. -- distributed distributed of that in partners channel of make X very, we In come phones as that on do and to headsets,

together, a orders, distributors, contracts systems we to we had have to slow the orders were and get of lot going. process pocket lot that slow went where force a we it putting As take a rationalizing and was did a And through. rewriting issues little sales bit that and the we frankly, of

or that, thought roll broadly We us, the then actually impacted so, think couple This million be and $XX forward. million somewhere or over the that's in particular we bucks to of range. going we'll and $XX rock us impact really million us quarter that quarter, next position a may behind

us. behind already mostly So

Gregory Burns

not of China, the of mean remainder buying the And in Okay. just China companies how specifically? you the do is a I What's over driving this that decline in see function the year? domestic American? dynamic

Charles Boynton

the American Well, companies. the tensions think, think is I been there of lot tough, has certainly trade for a political in I environment

off product in this in built for low were quarter, about this hit and million. sort past China, We we're for $XX did in our prop in million China as the products bullish China. in China company. trend sales value we in great in of have China, We approximately $XX a China our point But were maybe long-term

should that hard we -- think the given but happen it's tensions. get there's So better here, will trade things to what from predict

Gregory Burns

to Or than become development Okay. or And faster progressing back it wanted something the of I kind guard? why go that then Was as now? I transition. Was product this Teams just accelerated far off as your road caught you moved this map? just has issue to an understand,

Joseph Burton

of things you that said, You of the Combination bet. two Greg.

of actually in Microsoft's of us somewhat the first transition the all, than Skype many faster credit has to predicted. So larger to market Teams gone and

And would have by making moving months. the for recently People sale. little happened early end year. switch. in also of to thought. I have expected making the are the if quicker people actually had a asked really pulled that is -- a X market hit So mainstream, think, That would Business you said that would very announced Microsoft lot when than, of towards I I calendar Skype the that that's next in about really have me

So happening we a the quicker thought. or quarter two transitions than

stayed products being there. was decision strategy were strategy. but best the they first their market their take that time that do Polycom really Also, to right. to and made Teams being pre-integration by not and maybe a to when took They they market, We got on going

Teams or out the coming nice some X, we're next But the when going really products out by we so. and we're quarter a think quarter over in have fantastic that to sequence area have of happens. growth We or

Operator

the line Paul Cowen comes Your and of Company. from next from Silverstein question

Paul Silverstein

three questions, or Two may. I if

-- due with First all revenue guidance maintain yet. having upside a the EPS off, and to expecting EPS reiteration guidance lower changed and OpEx? revenue, is you Are revenue? But the year, I from margin to EPS reiterated some incremental that the apologize, that with lower the your [indiscernible] order numbers for also just all in that is

Charles Boynton

the So Paul, it's Thanks for Chuck. question.

-- guidance. basically, from million that's $XX effectively mixed Consumer helping million. that, we've $XX in lower earnings taken million us the China midpoint-to-midpoint neighborhood Because is and and down for $XX So $XXX and to is China Of the to benefit reiterate revenue margin, the Consumer year, have million. a of there's cash

savings We we've we've to that's have pulled that, found to round addition In finished cost us. And by a first additional announced in additional we we earlier, pulled couple million. addition, in areas the in quarters, have $XXX those the cost savings that of and and as identified benefit been savings. to then the a

reduction, those cost So put you bottom a shift, of we're with all to able additional together when line. mix maintain

Paul Silverstein

why details, that's reduction summary of upside. All is both and right. from right. your both the coming margin some All expense EPS that's appreciate But I the that gross and in up. you it's but guidance changed

why X in want the you you in question fact, assumptions whatever X? the not But given make for that are, China to China. trade you're goes to of to China You I'm possibility allowing level? war. of simple this is guidance, the entitled your this going are you're not at assuming stabilizes Secondly, China in assuming nature not sure

Charles Boynton

growing our today, Yes. a at of we've and product million is sales is $XX a where guidance, it assumed quarter roughly China In bit. that little

in have China, products made that for some new being are We released built China.

have deferred revenue And we services pretty will on. decent that a business have uptake. those and good that good so And visibility is and think in we backlog market have we a

China. material we or the impact right, would line. profile, margin impact there a adverse don't bottom potential So our on downside a it you're given I have real But think in is think

Paul Silverstein

push that. you let Chuck, me on

worst-case So did scenario. X China in a

You don't on have think EPS? it adverse would a impact meaningful

Charles Boynton

have meaningful. depends would definition a -- of It it on the

I we go manage an would impact. premature impact. I'd it think to hypothetical. don't it have But at have would level, can X, -- it. expect it adverse this an that to we we yes, But think so

Paul Silverstein

video, you phones, if out desktop All you the you all, headsets, third, of growth right. business in as by are could I ask those through what look terms product rates in I of if businesses your And for expecting think line, year?

Charles Boynton

the digits. looked the be and in legacy double of industry at growth growth, rates effectively, UC. we So to in range out in had are for going And industry break UC, we we've growth low headsets strong again, QX. really

We expect that continue. strong to growth

quarter pretty mentioned, As growth of it transition, and are relates couple we to of new a Joe business, our see having that strong QX in products out. as the being as video

strong of phone of and on video voice in side, X%. between desk kind and sort sort We're seen will X% is On X%, industry desktop, at the to and growing of growth, rates conferencing industry audio pretty we've voice. at fall growing

you And so to a the I that -- add any Joe, gives if more profile. to broad don't know, you color want overall

Joseph Burton

that's it. think you probably the probably healthy being is market Enterprise being single if business. videos, very, a tail I Video high interesting UC blended Voice, seeing high really again, legacy digits. headsets there of very to a mid- see market will. single in out to What we're still that X between actually and really once is we mid- digits. and the

with of installed minus a So grower, X% boardroom X% kind the that to video the is absolutely high-end a is plus you put the on depending of explosive. huddle in quarter, that coupled room might kind

we're the So depending low seeing up the on growth end quarter. the the XX%, market to in market, rates at of XX%

quarters. as in award-winning ago than said grabbed X remarks, an but X% that's that the in opening less share not that We're from market in quarters X nascent product releasing went we to in business, we literally

with ramping more products continue to that expect We come. to

you -- of low the kind video just mid-single of or to growth that growth get a digits. to rate bringing together, So

Paul Silverstein

already number. second commentary I the you us apologize if may. video given more now quarter I think, I you've you market. this Got question, your commentary But in set the if out your And piece, gave quarter, last it. One product, got your in the

I were standpoint room tell in you you us single-digit from said to you Can are new a where revenue the quarter million with platform. on think the platforms? the huddle first last you respect

Joseph Burton

Yes.

the... to You more little talk huddle about want a real and room about quick the cover I'll

Charles Boynton

Yes.

We expect haven't It first we in and where was at to it single-digit provided in QX. exact quarter. millions our details, doubled it's quarter, last growth low that meaningful continue but

in quite millions first not this we're revenue quarter. our in double-digit the so past And at -- in

Joseph Burton

had about about this, as market. I think I'm general, on go the a we and what's well-respected perhaps into market bullish quarters quarters and product entry-level share grabbed rapidly. ramp back first we've X line. continued extremely we our point, the not in room, room, we talk At video less but this in huddle this than huddle we If to aging product exciting were two ago, released X% in

flagship On end. at the that the large video of released product The quickly. portfolio, a into industry-leading new very end other be and go and to GXXXX pretty our collaboration boardroom, platform we is installed we the we video recognized video the for expect high like product

in the it's book about all between ends. Now filling

we got So in Microsoft. started out with with We Studio. market. We it the it certified

countries, weeks, Zoom. ramp. last the should really We've certified of the all other got it with we've so couple in Over it that certified

on architecture that Now the products on. you'll see our we build other high-end new platform same build

over next refreshed so. a and quarter rocking story, So rolling end-to-end we video and or we'll the fully really compelling believe have

Paul Silverstein

a us? either Would indulge not hoping that a the to you is given up, reminder provided the challenging the of or you can times cause on end my What that's range. just reminder, it's a risk definition, your you with more out and your difficult quarter wind quarter low in is of in question, the best year? downside you is the over below which past difficult when more on going at the the but that guidance, really the me that in breadth guidance one broad given forecast the and range I'm And to look model over this you be apologize come times. pretty I'm and a in call, had, greatest which but will is to others

Charles Boynton

go there color. QX. primarily So products Joe I'll this first, in is add additional new some and but out, Chuck. they can are are some coming that Certainly, are

is the bit is could I with guidance comfortable we that I out that, downside downside China probably I risk. planned. But think, fair is products So we expectations. lower a be given earlier, a risk -- have very a a QX, the feel a than come think modest model one. we where But There's given and from our think question where later are in standpoint, expectations little primarily that

Joseph Burton

expected thing the So that product I about quarters. this our revenue hit and got modeled I couple to the feel pretty right. There's out think a than we that. point. transition Skype quarter would to we on this that happened -- into much with caution Teams. likely a depends a thing, good of next I It quicker little of in that's transition that, of China Obviously, appropriately not from be couple all is that this truly the there things we've another at think with

Operator

question, David the line have Eller. We comes another from of

David Eller

said run could you OpEx second back comments was higher. quarter, Chuck, be you expect You to on the rate it you but made? a this lower the go

some Were some Or in going be onetimers. benefits this what said were I cost think that to to to basis? exactly repeat? go-forward on you a there saying that due higher you is won't quarter

Charles Boynton

We right. That's had really strong a Yes. OpEx quarter.

a across-the-board that at teams $X have comparison. Poly. really onetime million here well Our our We did helped performed benefit

also merit and We increases things traditional those. have the had of like some

of we leveling few I that see think there'll But kind I ultimately, to in of kind quarter it and And we'll quarters if radically. see million time, it going take some over costs out range, don't we some had that a I a that you that next million the give I say be you'll would costs would mid-$XXX think a leveling. then about up be I can $XXX in think So But range. add.

David Eller

from as mean, kind I you to kind be somewhat as about the And purchaser them to might affect so year. pushed deployment you more tensions. what could or of spending hearing customers, their to discretionary, of or But from in it. talk and I of your talked think you equipment issues that's then are terms how trade IT going audio transitory equipment? Got and their priorities maybe fall, be about maybe think further might voice the this delayed I on

So from hearing that any if you're your of buyers?

Joseph Burton

this major people is There's in. life, move The jumping is on, the to PBXs are that So that cloud. major, based many, puts support, that. PBX even anymore. that for right? there's end few maybe Joe proprietary on transition of on proprietary cases, always takes, a meaningful -- really parts that back them Nothing of Poly the the are from get There's delays. many though, can't big and is In end however looking this, toward slight to

So very the cloud real, move and the is to very very broad deep.

into going to future, that customers. So don't softness, back-off real on a seeing we're because cloud see many state it the that they're it the of we'll much big choice. one we're in moment, no thankfully. at mid-market. they But that. looking at in platform have when from years with seeing steady No meaningful maybe We're another, and Maybe at

David Eller

preparations you're what seeing Brexit Okay. And of just could you're there? to kind impact Or talk any date? if like you making then broadly from

Charles Boynton

it We impact relates volumes. to aside, seen ordering we have but U.K. have that FX as some certainly. rates, in an and seen Obviously, issues definitely

level, portion not are a annual of sort huge U.K. hopeful of a at our moderate is that but revenue. We that, overall

a material So impact to it's financials. probably the not

David Eller

last like of little have some catch bit Okay. longer-term there. a kind for do your And but color Could comment more maybe all did it strategy question thoughts me. then us Chuck, sound kind I of on quite you didn't of on you the give your dividend, there?

Charles Boynton

company, is back Certainly. current for are But buying one guess our as And hand, dividend make appropriate hard That's for dividend price think point think appropriate. we back prefer think payment. that. stock think not But price, the thought share sense. the where versus a a now of And the it's I we a future. share the stock would is the given probably I'd of I dividends. maintain many signaling to to kind where and buying we foreseeable I long On given paying own we about and not stock been investors change be right more

have in the look a at cash coming our lot the flow of we strategy, quarters we we'll future. next as into few allocation free capital that and So think

And the so to of down back dividend. paying price. current a not priority our number top our as is pay buy dislocation Again, just we paying big going debt. additional then well on very current opportunistically It's But stock that's in share the We're debt. anyways. based may the down on

Operator

Your Fahad next question comes from [ph]. the of line Desham

Unidentified Analyst

revenue the how was you FX? how -- what headwind transitory the your in much quarter? was You the to benefit much had to from headwind bottom FX. also, the you line the other to favorable And if you noted headwinds, contributed your that from some And I could wondering if could quantify of revenue of it. quantify

Charles Boynton

Certainly.

It was reduction revenue in side. million So line. It a bottom in I guess and the a reduction neutral million $X FX first really approximately. on to about OpEx $X the was

really it line. hurt help or didn't bottom So the

outlined were that for Those some the were The consolidation Skype channel of Teams, of and the sales issues. really the where and a we sort transitory we systems in to $XX-ish range together quarter. product other X which issues the million is transition integration had

Unidentified Analyst

it. Got that. Appreciate

realistic compatible new which of retooling need previously Microsoft's may something transition a I'm time you -- that used with the in products have has 'XX that were that realistic calendar And to full do do not protocols, it there and order your is by not you quarter of will mistaken, be How products fully most fundamental fourth you XQ of -- to update those been experience? a platform been your expect your think platform by XQ, Teams, new Regarding much have the experience? to that if incorporate open to. to that Teams

Joseph Burton

question. It's great a

the a without that Let going into down down further me all break space. engineering way little total

really speak languages a provided product it has which fundamentally the different great Microsoft platform, Business the Teams platform replaces. Poly. that the for that They by right user the between absolutely than Skype endpoint that's different you're is experience, So and

used to Spanish talk talk got and to Portuguese Skype back speak to we to forth if to to So Business, speak Teams. for we

quarter real that that not to to ago. with over a key a well started happen. The new on is retooling closely year got do we a working these Now understand and Microsoft half would here products very in

making so, this Those be Poly, So have something X.X QX or to scheduled QX, co-creating, always sure deliver going year. fiscal deliver really able this together, plus been years building products would these products, has on by late been for that of to Microsoft great.

we're our beginning. right air The course is target predicted. plan plan. nothing seeing happened the little originally done on from early. on only little No because we're transition get to than a customer pocket quicker this reason side So on the we is has are Things right this with crash But the slipped.

Unidentified Analyst

sell experience that And Teams if new new given add What there to one to Is and opportunity? perspective, Business color. do expect you Teams? if is this On the you net to Teams value opportunity Appreciate spend upside for any the Skype an potential guess, you spend I Teams? the I into customers spend I for on just Is a product. the how new with question up upside average, may potential your were more regarding much platform? up there compare

Joseph Burton

that speaking a I strategically. the that exciting. on very find But here. of couple have don't we to things things know throw numbers and around There's there, potential upside a we I'm ready couple of

we Skype Microsoft First so a we price. of the roughly for same if for an endpoint, sold a if for phone all, individual sell Teams, Business, phone

aren't going going down. aren't prices Prices up. So

However, pretty refresh cycle one, Teams a pretty looking at craving the number really a number is data, the significant; devices, few Microsoft steep. could that fact we is adoption are quick, all quite time, obviously, new things: customers this one, Teams taking announcing implies native of product number that The them off. be public see two,

voice and enable in So quite we see Teams the opportunity to significant future. the be video then to

next headwind fiscal get turning year. very into and of QX So tailwind bit as the we a a for little into nice us then now a

Operator

Instructions]. [Operator

Charles Boynton

no the for Thank and afternoon I'd Thank look there our our you Bye. If very everyone us next QX much. results, we'll call to review concludes. we like you, Operator. and QX further up earnings call. to fiscal joining to questions, wrap go our forward thank this are after financial ahead

Operator

concludes Thank today's call. for your This you participation. conference

You disconnect. may now

Plantronics (POLY) 6 Aug 192020 Q1 Earnings call transcript