How many companies have been to the moon? Plantronics (NYSE:PLT) has, and Tuesday evening, the company reported rocketing revenues, in part based on its Bluetooth-enabled headset gear.
Unlike many technology companies, Plantronics and its headset products have been around since the 60's. One of its claims to fame is that its products were used when Neil Armstrong delivered his historic speech from the moon in 1969.
Plantronics reported third-quarter revenues of $107.6 million, 24% higher than last year's $86.8 million. Net income was $17.6 million, or $0.37 per share, as opposed to $9.2 million, or $0.20 a share in the year-ago period. The results blew past analysts' estimate, which called for $0.28 per share.
The company provides both corded and wireless headsets to businesses (think customer service call centers) and consumers. Its move to incorporate the wireless Bluetooth standard into its products has proven fruitful, judging by the increased market share and demand the company cited in its third-quarter results.
However, while the press release cited the ratcheted-up demand, the company's president and CEO warned that several factors may have given the products an unusual boost, such as new hands-free laws in U.K. for mobile phones, and a "small effect" from the wireless portability law here in the U.S. For these reasons, he said that such incredibly high demand might not be sustainable.
Other risks to its lucrative call center market include the "Do Not Call" rule. Taking telemarketers out of the picture could depress the demand for headsets, and Plantronics' latest 10-Q warned of signs of saturation in that market.
In addition, Plantronics faces some formidable competition. Other companies that provide similar products include GN Netcom, Logitech (NASDAQ:LOGI), and a joint venture between Sony (NYSE:SNE) and Ericsson (NASDAQ:ERICY).
Plantronics shares shot past their 52-week high in Wednesday morning trading. If the economy keeps on ramping up, and more legislation fires up demand for all of us to be babbling on hands-free cell phones, the sky could be the limit for Plantronics.
Talk about Bluetooth and related products on the Fool's Wireless World discussion board.
Alyce Lomax welcomes your feedback at [email protected].
