According to CNBC, CBS MarketWatch, Reuters and Nasdaq’s news service, Plantronics — the maker of wireless headsets and the parent company of Polycom — is for sale. After reporting terrible earnings Tuesday, and the stock plunging 11 percent, it appears they are looking for a buyer. In the earnings announcement Tuesday, Plantronics said its revenue was $483 Million for Q3 2018, with a gross profit of $152.6 Million and a loss of nearly $87 Million. In comparison, in 2017 net income was $19.9 million on $210 Million in sales (number is lower than 2018 as this was pre-Polycom purchase).
In March of this year, when Polycom was purchased by Plantronics (for $2 Billion), we questioned if that purchase was an actual acquisition or a bail-out — you can read that article here.
Regardless of what happens, one thing is for sure: The person who convinced Plantronics to pay $2 Billion for Polycom was a genius negotiator. The person at Plantronics who said, “Yes, this is a good idea,” — not so much.
Here is CNBC’s story, today, on the possible purchase.
And, here’s the complete earnings statement from Tuesday.
Following today’s reports, Plantronics’ stock jumped 5 percent.