Plantronics Announces Agreement To Acquire Octiv, Inc.
SANTA CRUZ, CA. - April 5, 2005 - Plantronics, Inc., (NYSE:PLT) today announced the closure of an agreement to acquire privately held Octiv, Inc., (”Octiv”) of Berkeley, CA, a provider of audio signal processing technology.
Ken Kannappan, president and CEO of Plantronics stated, “Octiv is an innovator in digital audio, and will strengthen Plantronics’ expertise in personal communication. The acquisition of Octiv is particularly attractive given the future convergence of wireless voice communication and entertainment. We believe this acquisition will strengthen our product portfolio and long-term earnings growth outlook.”
Octiv (www.octiv.com) was founded in 1999 by a group of audio professionals who developed a core audio technology – Volume Logic™ – to solve the problem of inconsistent volume levels and sound quality common to many forms of audio delivery. A variety of markets currently use Octiv’s Volume Logic technology, including home entertainment, digital music libraries, professional broadcast and the hearing impaired.
Keith McMillen, president and CEO of Octiv, said, “Plantronics is the ideal partner for Octiv’s audio technology. I’m delighted that the next generation of Volume Logic audio quality enhancements will be deployed widely in the telephony and consumer markets.”
The transaction closed on April 4, 2005. Although specific terms of the transaction were not disclosed, the company stated that the purchase price was not material to Plantronics. In comparison to Plantronics internal plans, the transaction is expected to be approximately $0.05 per share dilutive to EPS for Fiscal Year 2006 as a whole, and it is further expected to be accretive to EPS in Fiscal 2008.
About Plantronics
Plantronics introduced the first lightweight headset in 1962 and is recognized as the world leader in communications headsets. A Plantronics headset was used for Neil Armstrong’s historic “One small step for man, one giant leap for mankind” transmission from the moon in 1969. A publicly held company headquartered in Santa Cruz, California, with approximately 3,900 employees, Plantronics maintains offices in 20 countries. For more information go to www.plantronics.com or call (800) 544-4660.
Plantronics, the logo design, and Plantronics and the logo design combined, are trademarks or registered trademarks of Plantronics Inc. Octiv and Volume Logic are registered trademarks of Octiv, Inc. All other trademarks are the property of the respective owners.
This press release contains forward-looking statements that are subject to risks and uncertainties. These include the statements that the transaction will: strengthen our product portfolio and long-term earnings growth outlook; have a $0.05 dilutive effect on the reported earning per share of Plantronics during the 2006 fiscal year; and be accretive to EPS in Fiscal 2008. There are important factors that could cause actual results to differ materially from those anticipated by any such statements. These risks include that new product development is uncertain and the technologies that we choose to implement may not be as commercially successful as we envision. For a more complete and detailed listing of this and additional risk factors that may cause actual results to vary materially from the results projected in this release, please refer to the Company’s filings with the Securities Exchange Commission, including its filings on Form 10-K for Fiscal 2004 filed on May 26, 2004 and on Form 10-Q for the first, second and third quarters of Fiscal 2005. Plantronics, Inc. disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this release.
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