Plantronics (POLY) 4 Feb 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Poly quarterly conference call. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Mr. Mike Iburg. Thank you. sir. ahead, go Please

me Welcome and Quarter Financial My of Head Boynton, And Mike Operator. and Burton, for and CEO; name Conference the Iburg, Chuck joining Relations. Investor Third Fiscal Vice of are to you, Joe Results President President Poly's Executive Call is today CFO. Thank Year XXXX.

of and information and discussed Private are related safe the under of statements presented in today the which are risks today's presentation. The our XX-Q, harbor Litigation release Securities XXXX. to such Act most Reform made earnings and uncertainties XX-K includes forward-looking The press provisions detailed statements, and recent

on will the 'XX today of our the Throughout we refer in today's investor.poly.com. FY specific Investor Relations our earnings website slide remarks, prior otherwise discussed presentation pages comparisons year. same at noted, This all the quarter QX available front from presentation. Unless will page to made to be is

management additional between results as on our meaningful previously at to indicators website current we the investor.poly.com. future should provide along reconciliation You the to and an of uses planning measures a this reported materials comparisons results GAAP These and those for are posted are and basis financial forecasting the with that non-GAAP discussed These non-GAAP explanation call, provide the measures. measures periods. also on for today applicable measures nearest Investor refer to materials of Relations

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

everyone, begin Slide on Mike, for us to like X. and joining Thanks, thank today. you, I'd

and to consolidation integration discussed across the implementing ago, quarters today we the growth. a plans revenue. A did of issues sales While not return the few issues meet are posted address channel results business underlying to and impacting expectations, and series outlook we our

in long the of within gaming consumer In transition, issues market. portfolio, trade to product impacts lines we talked about and our China volatility the the Skype existing Teams addition, in

working more to severe are than address has anticipated, aggressively issues. we impact the been While these

announcing of we product a consumer divestiture business. the gaming Sales, Head our today, new hired quarter, of launched our new This are portfolio, and

Looking short approximately million, in with revenues fell million. at was expectations by our by our weakness QX financial headsets, guidance results, while approximately below expectations $XX Enterprise Consumer $X particular of

as outlined approximately by quarter, $XX channel Additionally, by The transitions, channel and driven reduced to channel we previously reduce consolidation. was last we mentioned inventory inventory sales decision million. the integration product

We achieved last have inventory reduction goals the generally outlined quarter.

Cisco. has Global our enterprise track impressive Head record sales comes Wiese an I'm joined pleased with new that Poly improve To we're companies, in sales as Sales. a number to to key He of at of board. on execution, efforts our BlackBerry announce Carl Carl Poly to including a architect him excited growth, drive to profitable and notable and our have will of be

and close Gaming to reviewed optimized signed Next, portfolio we agreement Consumer in our Consumer a over have balance this few The sell next transaction to will of be and quarters. the the March. definitive expect portfolio

phones. Teams be all 'XX. Video Microsoft the On side, anticipate QX announced the shipping Series new the of now including and contribution modest recently we products portfolio, FY next-generation revenue through from and line We CCX nearly of Studio in then to Bars product our ramp are X of

specifically, designed with is communications transition new market and to offices; of from and communications unified communications industry today, to transitions the the move to portfolio the workers. These major Moving the X an experience. capture the the mobile to cloud; created designed to open the move products on-prem driving are This make user X. to rise by Slide effortless unified simple the intuitive opportunities

our both key solutions new end and encouraged and We feedback positive are users the are from by partners. our alliance traction getting

certification and to CCX and phones for revenue. XXX strengthen our XXX have now offerings Microsoft as Teams partners continue our completed We shipping these with are

headsets Trio new Teams of Calisto our number Many Studio, a and shipping and with solutions by been of certified already Savi, within Microsoft along product now Voyager and or these most, our we're families. are have EncorePro Additionally, certified Zoom. supported now

headset endpoints and voice, Zoom the that Our broadest now video Zoom portfolio Meetings of supports set and officially represents Phone. Zoom certified

on We of status new have included our it a their to reference Slide and announced as and certifications. table products XX recently relates availability

forward While now shipping board, on on pieces and the have new as growth in in unified the not the been expected, Communications product place the we our of progress with new to results believe FY are Sales what our we we drive and Head company through 'XX. capitalize

Chuck? over financials. that, review Chuck to call to now With turn the I'll the

A XX. reduction the product Joe. of was $XXX all This approximately affects categories, reduction difficult. making is Slide million financial prior provided to on million. in channel inventory includes revenue periods comparisons Non-GAAP Thanks, summary and $XX

As our is to The Joe overall are to a proceeds the into specific sell product lines business. cash gaming of are entered for terms strategic noted, all-cash The immaterial sale an a we financials definitive Nikon, buyer. liabilities our certain confidential. assets to and the have French and agreement transaction

expect We deal by March. of end close to this the

the are of business. to our Consumer remaining In optimize we working addition, currently parts

a result for earnings GAAP expect time. capital optimization, these we working charges will improve of and As over consumer which and taken actions, restructuring our we have

to Moving XX. Slide

manufacturing on lower expected, program. executed As were as channel margins across gross reduction base our impacted our volumes we cost inventory by fixed

in product QX to new see and margins gross limited. impacts remains as to availability volumes seasonality expect similar We a impact

expect related mitigated. as portfolio, consumer In of the We tariffs impact cost impact also be XX%. our reductions XA products. December the and at included execute full largely further quarters to to tariff saw coming List incremental product quarter continue the we consumer to The tariffs we primarily optimize

in restructuring is Operating million. quarter margins and $XX primarily previous X.X the declined percentage cost X% savings due to lower from Operating benefit million. offset million. or points activities operating Adjusted volume. FX in and was variable due expenses a lower to rates $XXX $XX EBITDA of million, to impacted approximately to by to XX trailing $X million, our compensation. primarily by declined months million, $XX revenue sales $X negatively expenses bringing Changes partially This

charges approximately Slide activities. sale to GAAP million $X expenses which million are above which, of of a gaming our operating charges, the or restructuring include was and of guidance of at other $XX due charges, to XX. the related and to increased facility-related approximately severance our half noncash benefit, range tax consumer optimization EPS by midpoint of earnings Non-GAAP diluted primarily per portfolio $X.XX, share $X.XX. Turning

XX. channel Free to in was quarter Slide the by reduction Moving cash impacted in flow inventory. the

we end to working unlock debt in to capital Now $XX will repay reduced have channel $XX that expect capital. March. we million to on-hand inventory, million Through focus working to reducing we inventory shift materially of by the management,

have can the operate cash, now at excess company trapped a and debt. foreign pay lower level Additionally, cash to the freed of cash up down we including using

Regarding our covenants. debt

continued we remain going cost our and With the cash forward. confident on plan reductions, in hand

guidance to XX. on Turning Page

we providing fiscal we revenue total, For with QX, non-GAAP upcoming revenues information million $XXX guidance. of to GAAP of $XXX optimization and of the In million. million are revenues additional of million, to $XXX consumer, on net sale gaming expect and $XXX

XX a products being this between Enterprise lines of Slide optimized. breakdown range sold product provides or and consumer

sold channel -- If sequentially. approximately the forecasted by Enterprise QX from inventory to driven products QX reduction, you QX QX, to is decline This historically Enterprise channel impact for adjust XX%. declined through seasonality as of partially to revenues QX are the the

business. also Finally, revenue was the by around impacted Consumer our actions

and range the $XX of EBITDA of EPS be in to guidance, million QX $X.XX. of million, is adjusted the expected be a a of $X.XX total to is non-GAAP $XX loss with to range to Continuing expected in profit

Touching news on the Coronavirus, lately. on briefly which has been

components source moved manufacturing our Mexico, has of many China. still to much and we products from Although some

ranges. guidance more this few can this, supply not severe the within impact A believe we accommodate contemplated Given guidance providing impact of a delay have has we component our been are contemplated modest in We the delays the a weeks. at point. of today chain

we next-gen return short-term business actively the Finally, to portfolio 'XX. fiscal expect with and through to phase, are in our growth managing transitional the

the will back I to the Operator? Q&A. to turn operator that, begin call With now

[Operator Instructions].

Your question Daryanani. Amit the of from first comes line

in I in line. look low versus decline underlying December, look think, trends saw end in for what you declines revenue like, much Can Joe, When March. of how I trends true down revenue the -- about are? are the the get a December this you with market XX%s, down your baked dynamics just -- the quarter? of on maybe to guess, trying end is especially talk demand let's XX% into reflective like you're the you channel get the to Just sense I end guide what just inventory and at in start and revenue as seeing of March

-- talk I'll about free add, to if bet. to in. feel he can you it. anything Chuck has jump Yes, feel And

off meaning From our our channel the take mentioned, of out about guide the the enterprise on in as revenues, particular as revenues we sell headsets. So $XX $X well. with inventory million did in of weakness out we midpoint expected. actual our our course, with to BXB were general, million of we midpoint that midpoint And off Enterprise as maybe actually corresponds --

no On the we Consumer strategic weak, announced having looking for that particularly business. were we options were surprise, that at side,

hung for And Consumer. a headset was were except So number. slightly broadly, together, for, on Enterprise, we what about disappointing then looking weak particularly

of look we QX, As a -- to as guide guide things. we in couple to look

always QX First as of QX Enterprise all, of of in as see much our mentioned, seasonal as a business, we fiscal to Chuck our our drop-off fiscal XX%.

little XX% drop-off on prudently additional of happens that to integration. weakness bit to transition guided tried plus the very always product We guide and quarter-on-quarter, we a So sales side. the related Enterprise

have side, but Of bit more, being it's of business to the part that compares helps. course, difficult the on a sold. Consumer Hope with

helpful. that's And Yes. No, I could follow-up. just if

for it want you fair that you your within part, and broadly one out do how this the 'XX? that? in And point On to the how to a part. through shake be? working free own That's speaking, cash channel as inventory the is that flow largely And you you inventory think where is does side, generator fiscal guess, balance I inventory is about capital second go think and, as it metrics at

Yes. Amit. Great questions,

our this are time. satisfied of first all, channel on at where inventory, So channel inventories we're the with

coming Internally, that that given our we always we're So amount management looking our inventory very feel took the up, appropriate we to and that's out, we manageable. all capital. product and optimize the transitions working have

So that we tighter to careful forward internal the make over we be go we our can we be quarters. to product sure do But too, even continuing transitions few there, our as do see correctly. got to managed next inventories

line next Meta Your the from Marshall. question of comes

at just XXXX, the new know as and This pent-up should think the we're forecasting, that you demands quickly do you pent-up about product? is ramp? to Maybe Meta. launched I pace? demand that said on how you've product, in growth Teams how looking -- see but for of the just we for Erik that And looking kind Microsoft that for starts

that. This is bet. go ahead you and about Yes, I'll Joe. talk

coming, time say, Zoom XXX think that in could products I all to and results, long spot not products. new a been side. I on the execution brought headsets it's all, for and got Teams market more really of the for XXX the financial Microsoft, recent Studio new and new first for and pleased So be on. the CCX spite We of to our with our Poly others The we XXX XXX good and phones, are really, product are

pent-up product demand you are in ramp we So about products. normal we're on for a They the new we a well, asked -- product selling introduction. strong see however, see demand,

the have supply of those more products as to just But well very are in loosens do to next but sell because way supply not expect any both year we they then because we extent even over up. the early So and constrained, problems, QX, product of ramp. that we the

just do debt sale the expectation that some could of pay enough Gaming the Will Maybe to be just to then the Or rightsize if divestiture you there? the business. Consumer on And have quick plans? other proceeds maybe down? of go you

fairly is this are cash things. paying One we delevering to are the and Erik, is I'd cash down Chuck. debt. applying Yes, excess two But proceeds say immaterial.

over debt. also Importantly, as down a to come Joe and levels help time, of inventory mentioned, our that expect source to cash we pay be down would

short yes, but is that the not So it's material. answer

from next line Burns. comes question of Your the Greg

question, gaming for? And accounts us last products much that Gaming you business know on profile margin just let follow-up those what that revenue the are? guess, of could I to, maybe Just how

Greg. Sure,

margin a faint, -- You're the little I question revenue or and profile of but gaming think the was margins. your

the some the as that revenues materials we've So earnings represent help as optimized. that included show well effectively are in the tables Consumer gaming products being to other supplemental

revenue is And the to I'd million. so deck, quarter our QX was you And for for point the that supplemental for $XX line that million. expectation in $XX the QX

other how so that And optimizing. plus a the that is the gaming we're you sense -- Consumer gives of businesses much

Okay.

excludes gaming, guidance QX because like So it's the operation? a discontinued

of The does close at end built to revenue March. deal QX have we gaming guide the the because some in expect

that you'll point So industry, there rush. quarter seasonal note, But the specifically, the with some is low March that holiday is gaming. the given typically as

we cash discontinue. proceeds lines as -- that of products taking -- it's to sort may and So future, sure that we've various and make we've optimizing the to reducing SKUs have been or of the optimizing, in those end-of-life product we we're been decide

gaming and we'll those be have talk forward, plan. once the we'll Nikon, optimization detail the lot more they'll carrying clearly, products quarter So in balance, selling be to our we then you a next gotten through to

Okay. a inventory. I little decline in side of the includes unusual that your drawdown Enterprise to the QX the quarter, of guess, But of which And off terms also inventory. number, business, seasonality that understand you in that guiding of side million there's a on drawdown sequential a had on then channel I the guide you're business. of $XX And this bit sequential of

guess, to quarter? dynamics I'm revenue unusual adjustment though had third still channel just the So quarter, trying fourth declining we understand, the Why demand are in inventory kind even seeing of the market. the I this in in we

Yes.

think I Greg. understood, I

above a when go guide are and like generally, like, sounds like normal. down bit, from the in sounded it down channel step overall to a and little inventory sounds down. a still that's the but consider still You It step QX coming It you guide. QX, down over

and the selling a transition, said mentioned down a older some in to as it to appropriately all announced, We're also, make our are product product same while our transitions, there that, these others. over this I CCX about be for well wrong real at be very above. of sales new and a mix be the and can phone think, through almost frankly, guide the still is, going market during trying just of integration the that word, to is cautious native that we around to previously. they're and that of issues like Microsoft I some as we've of XXX bit talked for sure video trying XXX that Teams. ago, time Zoom are Studio products the with manage little Microsoft we the of during cautious finishing some the products We're I phones, minute key The we're and

could bit despite lastly, in still more just then And Okay. covenants, compliance with that, why just on lower maybe guided? give on you little covenants debt us the that a perspective debt than what you feel you're you've the be going your to

Greg. Certainly, Yes.

So we have to a number of tools us. available

they And OpEx. revolver, add I backs. and specific look EBITDA are have other flow. debt cash and revenue the the pay business. hand. working covenants can reduction, drive are improve We're to thing, inventory We of down We'll COGS both part with driving capital going then generate the and effectively so managing And to with And we down. think, notably, cost that on and loan more obviously the is at actively of cash cash on features

with And feel business, think agreement have so the and that not that workable plan is underlying the -- on and debt our our we that I the and we outlook there's we an issue. tools

Your comes question Paul Coster. the of next line from

primarily the here product the do can you dog the up inventory since wagging same it I'd feels beef the there's elaborate, I to do Yes. is like to please? cash debt? you're with trying Is to things And on both that follow-up it time, manage to Or drawdown. transition? prior in -- a the the at bit little a the of like tail questions. to terms it

is Paul, Joe. this

last of part all out ready to amounts the down product inventory in I'll talk be to quarter To old for industry the have the appropriate very, work during then The it. the channel unified year very while cash of connected and do the need transition are that the communications talk transition, of rest we first and products, and getting very he'll driving inventory over Zoom, for to product was next reason -- there X. a to need a clear, about I'll So Chuck management. the Microsoft, let and be than the win feel to to doing over market. this we different cloud the in products that compete order that fantastic product the or The good, transitions in we with bit

to So we are with products talk a bit about in. exactly we cash. inventory as nothing these spot It the down management. to had sure right let I'll new brought make were cash in do flowing Chuck

Yes.

look the were you if where at levels today. they back much individually, Paul, than inventory So lower historically, the companies even and go are

below are best-in-class, X at looked it would levels inventory And Our you if turns. turns. X be

target, than inventory was is would $XXX Today, turns. X be X. our less And it million. Our between we're there and backdrop ending the X

below a is belief you more Mexico, to of cash. effectively Southeast that a our from And a exiting little year If went Asia we back part was our moving inventory $XXX can than generate drive Consumer And ago, down. of that business, it lot by will levels products by that million.

And where turns. my feeling that personal would and X in inventory so appropriate of -- be at is we get level those north levels I to drifted need our have to the check back up,

Yes.

internal. I channel inventory, out the internal Not problem. to absolutely, that was thin inventory a we've bit our ability Paul. to as a sorry, talking management, moved misunderstood, I So little if in our

wouldn't If, products strength okay. of got push strong the starting than why the No, or, I'm X, one the the the business And products, of demand momentum, though an going be business? new guess, those capitalizing inventory, still inflection supply But on you old channel sort the of is for inertial kind and be time new just wouldn't rather of now Joe, we constrained, and old upon then. end this? have there, that's back why I more to the seeing

well or -- channel. products products old older in The still selling through the are out

to to very about couple competition, the new with of the of make Skype was our with a last to much for there transition, the was just Teams sure so idea being we've new some The of in. talked had we've over we that announced. plenty quarters, and with products little As room the bit frankly, some thinned channel slowdown out seen products go

along channel products So there were as of a here, in. there's our didn't the the products weeks sales as many flow needed feel new for the We the channel engine old products that executing better starts the little the old. in room new once with starting out to

However, still for those while. products a sell should

Okay. headset Got Enterprise for the there? it. It's, sort notable. space that question you're you've give lowest pretty can for you it raises Are -- question, is And a actually. -- side. headsets? All conventional a it right. this to it? is is share, losing I the some time, Perhaps long The in the you us there of substitution? Enterprise My the think, consumer you're whom while losing last on headset if weakness revenue losing to Or had color

thing, Sure Paul. Yes.

make on that -- question headset side. about so the the no So Enterprise side it, the headset

As our missed we've gone we the headset through a our consolidation integration, and trick side. on have sales channel

products are Our excellent.

market. not still is be the strong. portfolio in We very Our beat should getting

with the in, sales to he's Wiese, for Our pronto. we're execution bringing quarters. been steps on win poor headsets, the go and a We're the losing has folks new right couple taking competitors, Carl that leader of now now of and normal to go-to-market back some right on frankly,

massive a see of not So problem. shift a would so a not we be difficult, problem, substitution as fortunately, or headset on sales right? product that to the a consumer industry And more the it's something sales, it

from the of Your line next comes Liz Pate. question

Most my Liz calling Silverstein. Paul This answered. been in of questions is have for

quarter of was that positive quick go-forward how we a this of our couple surprise level expectations. that in sort a OpEx, we're ones. and to the stay Just basis? that you March now? On think relative about Or to on Can a should try at about talk for

a check done job to period. Certainly, I company and costs keep has transitional the in during efforts nice Liz. cost this all OpEx, appreciate employees' on the containment,

leave in very and right benefits on 'XX, So QX. call, provide a in up we QX, bit. we we are this the did expect to but transitional for have cost-focused little I now time And drift then it at more think guidance I'll next some that. we'll onetime earnings

progress are least now? date introduced room or to -- maybe Okay. you've your And think, a there the are to contribution on up at that number, more is just date, What the in pipeline? X the has then room, us from I for can products huddle size huddle Or X more contribution? the you opportunity? in been it the help And there

Yes. that. on Yes, Liz, I'll start

ago huddle product our company So the up we now, on a announced coming a guess, which after was year I really product the joint room. Poly as to Studio first go

Poly getting So now year last been ramping has couple to over Studio for and the nicely close has a of been shipping quarters.

doing couple The we is controller a cameras, feel TCA small- the what and need room, compete doing products Poly on to have really that in So as like now the we well. well new we side win that go Studio bridge we're Studio medium-sized huddle both to product product the as room the the quite Poly and we of is XXX, with well. have and room really the huddle XXX which the that traditional added conference

of think and e-commerce sure that go in the we're that got traditional team, sales also the winning only some room the help very poly channels go-to-market I strong, others buyers but time. with in of we the in to that on not where huddle -- some channel and the is make Carl buy

shortly. we are think the and ammunition that now. market got nicely, ramping that we we're Products share we make to go So all got in sure very taking right

on at March final quarter. look as one we just the question gross And margins, Great.

on mentioned down, underutilization. I'm you gross Chuck, wrong, may flat? us if up, you further you sequentially but margins great? If I see think, be that some help me you Correct that that, can would

have the going outlook think revenue underutilization factory capacity? quarter. outlook QX I charges margins down gross bit sequentially. expect build be Yes. additional in into and to our Is we're I and the to carry would factory a

comes question the next Your of line David from Eller.

you're run could the portfolio? the and back, the that Is on If Consumer winding business And you way would me in maybe the right with just that about to then, $XX XX% it? above the I calculations selling looks It ballpark? with it maybe slide I in my like rate, million, for like go-forward you're gross that something read be the help of optimizing. -- guess, portion the of XX%? guess, back-of-the-envelope those Is down margins

have our the sort news Slide So revenues of the Consumer Consumer that of and or a David, the In we not unveiled kind our is margins history of the table cash The final plans prioritizing flow. do products optimized. effectively business. gaming the sold, ongoing we and are being lowest of we shows and show margin sold the being that optimizing the was business for best and that the sort that's have business, revenues Enterprise XX, great then best

holistically quarter, -- we talk about plan the to plan. our next So optimization

a you on updating And that. so to we look forward in quarter

revenue we Your -- of gaming the average, should a once higher has profile, on it the been are XX%, out business, little though. be margin

And other your with the at were Investor Microsoft? update it it. I and you they portfolio can a relationship to until the products sounded Got bit think pushing sell on maybe available. us integrators was new Teams Day, like customers little then

that has wanted to they're into channel? if to ask send just Or still subsided pushing you've started I as products? other the customers products So actively towards

Yes.

although I'd Microsoft can say Skype, been got very, a overstated, be might people has solutions. were all, buying wanted tad that I understand just Skype why there. they native they clear on very that when of First you

could native video, late the they to at we Teams, satisfied camera market, Poly new Now people XXX our got XXX advocating in that to right phones, we in but phones on particular they have track Poly fine, from that CCX days. much course, the Teams back EagleEye headsets Teams a Teams all the video, we XXX always in of the buying solutions. like indications Teams solutions. in very gap and that partnership the new partners and were had it and where together. native feels be not the say are on the And is Microsoft and solutions with very Microsoft want with were video that few native Studio Teams these now we're last our market they happier on I certification were, got with phones Cube particular, certification. the days, with bar, Studio is

Okay. June for And of larger products? as great the by XXX, But to longer-term a read. a kind in launches, then it trajectory we not that have results we time your the some CCX, think the of of still XXX, maybe about we're like product quarter, sounds March going would report read you success on quarter concrete August, have fairly and newer, those

to But products add we -- to quarter, right. expect we may are not a going color I report. we you're ramp. next Those have have absolutely. Yes, supply time may this mean, fast depending reasonably upon some goes or exactly to how exactly

to long those about the tell the and you, understanding products. got the great reporting on summer industry been get by this expect we are But to time in time, a feel for how those of have into So a we I strong I've doing. I quarters,

thing I think on XX the the they're the we've towards what target, they're last for market, been working right they're months. for and

if the if think paying down -- if for And I your And all? I or debt that's at I wondered great. you as opposed in for bonds. know preference your those changed of could thoughts loan kind to with us last -- about the then, you That's on term for -- paydown update past, Chuck, me. still question talked are

No No. change.

quarter, this term we've B generating and And down. been Our pay to million, between plan Loan that $XX we from million would plan be cash through to primarily the mentioned I operations. that $XX pay

Mike next question the Your Latimore. of from line comes

Great. Yes.

done headset December or -- had stopped think the that quarter. September quarter, the I you you a and in promotion, you in the On the legacy headsets, promotion UC see I think

those non-UC wondering for demand sort of Just in headsets, change those given patterns? any

referring you're to, quarter. Mike, I You last part our over headsets certainly on and, think we know, discounting everything carefully very the watch did overall, the that frankly, frankly,

headsets and legacy at headsets expectations were the However, had. both UC not we that

projected than You flat than better headsets that are to as more quite Mike. legacy look They understand product as attribute UC are be headsets were have not -- we they grow a go to as that, to, supposed Frankly, not business Legacy either. down projected. strongly many, are and a overall, we grow and it, much We headsets did to little problem. at back should down.

in You can product always headsets strong. have is quite X But more portfolio our product.

earlier, described our our those great on to our back in question, we're took I now. and market, take consolidation, and that fixing a ability headsets right to sales no channel step As integration little we

then think And services, the we I guess, so? should Okay. sequentially. services business or they how next about quarters flat few were

really March nice step terrific this Services on services. We've be quarter quite little and bit Yes. on year. in a decline a doing down quarter, will the to a team Thank for you a should single-digit low the job in QX, renewals. in it

next line Baker. Bill of from Your the question comes

which contributor think video years is going overall which from going getting now you market closer momentum, is momentum, to do getting the terms a to have you the in look one and new faster revenue? to with products, of if And now, of you your near-term think? you are be As voice chunk two to bigger do to your two out

I'll in. start jump is can Joe. Maybe and Chuck this Bill,

video enterprise and consumer about So for headsets, setting as a our certainly, business aside minute. we voice, think

we're now. exciting I'll We as time disappointing to the have in of The software industries. well, it great growing restrict stuff over but Poly pretty in spite for news three is results hardware right some

over our video and enterprise of still on have are headset several market and the headsets Good the the next all large So profile. the years. biggest growing market X, are business news nice a this voice is, growth market, the and

So if we I sales your consolidation fix answer that grow going to should some nicely. of am and integration channel question. our issues,

also external few year growing, to X% voice the sources nice over business I On think, to side, according years. next X% a the a

quite growing #X have upon forward. frankly, We -- you that position business you going there well, video, depending we also well And how have market a is upon a how or as in count. #X

So when have it conferencing desk grower position. share. a XX% going grower blend together, headsets, kind we in down ZIP #X you overall, #X forward, phones, a we're overall going forward, market Phones, around however, maybe market all and we X% phones, only to of a XX% meaning, and where have position, X%

So of room beat to to a go the competition. lot

video These a video, But is case projected on cloud about that are with large the Frankly, the deck. X% room out video, grower. the going it's also is our numbers forward are to market. a very all of move and investor of be interesting. the Video the to in huddle

-- So billion $X fairly market in. that video $X player up is billion we're were a that are that fairly or #X we the small

room phones we in to a grow. to has frankly, So going but grow lot room the most Bill, video in in of video, forward, see and headsets,

like or the to well do the We these X years, expect all well, to but probably extraordinarily across across still, I'd everything just pull you we if starting market. right go But of execute and size share. of -- all ahead video see X if to because it take of out X grow I if X,

you for we much. quarter. look talking everyone Okay. call, in thank everyone want With to to to and QX very dialing to the next earnings Thank that, Poly forward

This today's for participating. call. you concludes Thank conference

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