Good day, and thank you for standing by. Welcome to the Poly Q4 Fiscal Year 2021 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. If you require any further assistance, please press star zero. I would now like to hand the conference over to the speaker today, Mike Iburg. Please go ahead. Welcome to Poly's Financial Results Conference Call for the fourth quarter of fiscal year 2021. My name is Mike Iburg, head of investor relations, and joining me today are Dave Shull, Poly President and CEO, and Chuck Boynton, Executive Vice President and CFO. The information presented and discussed today includes forward-looking statements, which are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties related to such statements are detailed in our most recent 10-Q, 10-K, and today's press release and earnings presentation. You should also refer to the materials we provide today for an explanation of the non-GAAP financial measures discussed on today's call, along with the reconciliation of those measures to the nearest applicable GAAP measures. These non-GAAP measures are indicators that management uses to provide additional meaningful comparisons between current results and previously reported results, and as a basis for planning and forecasting future periods. All of our earnings materials are posted on our investor relations website at investor.poly.com. With that, I would now turn the call over to Dave. Good afternoon, everyone, and thanks for joining us from wherever you work. With vaccinations and travel on the rise, today I'm calling in from our Denver office while Chuck is in our Santa Cruz office. Poly had another strong quarter reflected by the numbers. Chuck will talk in more detail about our financial results, but we saw non-GAAP revenues of $478 million and adjusted EBITDA of $86 million, representing year-over-year growth of 17% and 44% respectively, driven primarily by strong video and headset sales. I want to call out that this was the biggest video quarter in the company's history, a terrific affirmation of the rise of video overall, which we see as a long-term tailwind post-COVID. Despite pandemic-related supply chain pressures and freight cost increases, we continue to protect our gross margins, which were 48.4% for the quarter. We generated $74 million in operating cash flow, refinanced our outstanding bonds, and paid down our term loan. On the product side in February, we announced our new Studio P Series, a line of personal video conferencing gear designed for the remote worker and supported by our unmatched software and services platform, Poly Lens. We also reached an incredible milestone this quarter, shipping our 30 millionth IP phone, as we are seeing remarkably strong demand for phones across Zoom Phone, RingCentral, and others. Just a few days ago, we launched Voyager Focus 2, a Bluetooth headset with advanced noise cancellation and our unique Acoustic Fence technology, delivering extraordinary sound and wear-all-day comfort. This kind of performance, both financially and operationally, defines Poly's opportunity going forward. Specifically, it speaks to both the transformation of our market and the transformation of our business. When I joined Poly, I was clear about the challenges the company faced. I framed the company accurately as a turnaround. We brought in excellent new leaders, like our Head of Supply Chain, Grant Hoffman, whose arrival has already had a huge impact. We also enabled terrific executives already here, like Carl Wiese, our Chief Revenue Officer, who is rapidly rebuilding our channel reputation, and Chuck, who has reduced and refinanced our debt. While we are not yet at full sail, it's safe to say that the ship has turned. Everyone at Poly has worked hard to get us to the point where I can say today on an earnings call, we are no longer a turnaround. You won't hear me use that word again. Today, Poly is about transformation of our market and of our business. The market is different because the way we work has changed. Every day, there's more evidence and momentum of a permanent shift to a highly distributed workforce and hybrid connectivity across our colleagues, our partners, and our customers. A recent survey of 164 commercial landlords who own and control 7.1 billion square feet of commercial real estate assets across the United States show that 82% expect a hybrid work model going forward, where employees work from the office just three days a week. In a recent IDC study on digital work transformation show that 42% of organizations are focused on connecting people seamlessly, regardless of location, situation, or context. We've said it before, and we'll keep saying it, work is no longer a place. It's what you do and how you do it. That means the world's workforce doesn't need tools for a place. They need gear that connects them seamlessly to other people to be productive, to sell, provide counsel, ask questions, solve problems, innovate, and educate. Poly makes that gear, products that are tools, not toys, and more importantly, we have the services, support, and technology to make sure that they work right all the time. Now let's talk about Poly's own transformation, which we will expand on during our upcoming Investor Day. We're organizing our business around one key idea: Enterprise communication is no longer about individual devices. Instead, it is about offering comprehensive business infrastructure, the software and services to connect people, spaces, and technology to create the future of work. This is the catalyst for a powerful and audacious future for Poly. In the past, even recently, Poly often competed just on the basis of camera and audio quality, maybe also on the AI integration with that hardware. The fact is that our customers are facing a deeper and wider set of challenges as they plan for the post-COVID world. The IT leaders are worried about compatibility, data analytics, security, digital workflow management, reliability, and support, both in the cloud and on-premises. Top HR leaders and CEOs are also worried about equality in meetings for those in the room and those not. Governments, healthcare providers, and the world's biggest banks all need reliable and secure communications, and each have a set of specific requirements that must be met to ensure an optimal experience. Across the board, our customers want comprehensive business solutions to enable work at home, work in the office three days a week, work in short meetings, and work in lengthy brainstorming sessions. Poly's future lies in getting as close as possible to our customers and working alongside them to create a complete infrastructure for the future of work. Our solutions must be easy to apply, and despite the complexity of the underlying infrastructure, must operate reliably, seamlessly, and invisibly all the time. We have a team of business leaders in place who recognize this and who are frankly working harder than hell to outthink and outwork our competitors because we're not just content to capture incremental comm spend at our clients. Communications is bigger, the technology infrastructure supporting it is bigger, and we're looking to capture a bigger share of our customers' total IT spend. If we do this, we will grow faster than our already expanding markets, and we will create new markets that we will claim as our own. Before we turn to Chuck for the numbers, I want to take a moment to speak to supply chain. Just a year ago, people and businesses alike were wondering whether there would be enough demand to survive, let alone grow. Recently, CEOs of every major public company, Apple, Cisco, GM, Samsung, to name just a few, are talking about supply chain pressures created by excess demand, especially for semiconductors, memory, and other electronic components. Poly is not immune, and we're facing these same pressures. Long term, that speaks to the strength of our opportunity. Short term, it's operating pressure we have to manage. We can't be sure how long this tightness will last, and it changes daily, so we are focused on operational improvements that will allow us to deliver the best possible customer experience. I want to underscore a far more important point about supply chain, however. Components are just one part and a temporary part of Poly's supply chain story. Last quarter, I highlighted that our supply chain was our number one area of operational focus, and we have brought Grant Hoffman on board as our new Chief Supply Chain Officer. Since then, Grant and his team have been working nonstop to audit Poly's supply chain end to end, from the conceptual stages of a product's design to its final arrival on a customer's desk. He's developed and delivered a detailed strategy to upgrade and optimize every aspect of it and is in the process of executing plans that will generate tens of millions of dollars in savings over time. Given our ambitions to grow, we need to ensure Poly's got the infrastructure to do it. Grant will be presenting at Investor Day, and I encourage you to join us and listen in. I think you'll all agree that the experience and expertise he brings to Poly will serve our company, our customers, and our shareholders well. In just a few days, on May 18th, we will celebrate our 60th anniversary as a company. Given the audacious plans for our future, given the transformational opportunities we see in front of us, there's one more change we're making that you should know about: our ticker. Effective May 24th, our new ticker will be P-O-L-Y, Poly. As much as I have enjoyed the transition to remote work, I have to say that's one business event I am thrilled to attend in person, ringing the NYSE closing bell on the 24th to celebrate our history, our accomplishments, and most importantly, the future ahead. I was last in New York City on March 10th, 2020, so to return safely and fully vaccinated with a brighter future ahead will truly be a celebration. Let me now turn things over to Chuck, who will provide a more detailed view of our financial performance. Chuck? Thanks, Dave. As Dave mentioned, it was another strong quarter driven by remote work and video collaboration, following last quarter's record professional headset revenue, this quarter set a new all-time record for video revenue. Non-GAAP revenue was $478 million, a 17% increase from the prior year, driven primarily by video and professional headsets, which were up 125% and 20% respectively. As expected, our voice sales declined 33% year-over-year, but were relatively flat sequentially. Services revenue remained stable at $67 million. Gross margins declined 100 basis points year-over-year, driven by air freight and product mix. Operating expenses were flat year-over-year at $155 million, and operating income of $76 million was up 58%. For the full fiscal year of 2021, total revenue increased 1%, with video and professional headsets up 50% and 20%, respectively. This was offset by voice and services, which declined 41 and 9% for the year. Lastly, our consumer business, which we largely exited a year ago, was down nearly 80%. If you remove consumer, our revenue was up 6%, and excluding services, total product revenue was up 9% in fiscal 2021. Gross margins for the full year declined 240 basis points, but that decline was more than offset by reduced operating expenses, resulting in an 80 basis point improvement in operating margins for fiscal 2021. Incremental freight impacted gross margins by approximately 200 basis points. The demand environment for Poly products remains strong. Our next-gen video solutions continue to gain traction, with sell-through increasing over 700% year-over-year. These newer video products now represent approximately 2/3 of our video revenue and 90% of our unit shipments. Backlog remains elevated and is shifting to video and voice as enterprise customers prepare to return to the office. Lastly, channel inventory was roughly flat to the prior quarter. Turning to cash. Operating cash flow was quite strong at $74 million for the quarter, yielding approximately $150 million for the year. We ended our year with $217 million of cash and short-term investments after retiring $100 million of the term loan in the quarter. In February, we refinanced our 5.5% bonds due in 2023 with a 4.75% bond due in 2029. This transaction not only reduces our interest expense going forward, but also removed a near-term debt maturity. Please note that we did not pay off the 2023 bond in our fiscal Q4. Rather, to save money and avoid the early redemption fees, the cash was held in escrow and is reflected as restricted cash on our balance sheet. Both the bond and the restricted cash will come off our balance sheet in fiscal Q1. Turning to guidance. As you likely saw in our earnings press release, the global semiconductor chip shortage is impacting our supply chain and the situation remains fluid. As mentioned earlier, end market demand for video and professional headsets remains strong and voice demand is recovering. Absent supply shortages, we believe demand would support sequential revenue growth off the March quarter. However, based on our current supply and expected availability of specific components, we expect to deliver financial results for fiscal Q1 within the following ranges: GAAP revenue, $410 million-$430 million; adjusted EBITDA, $50 million-$60 million; earnings per share, $0.35-$0.55. Our non-GAAP tax rate is expected to be 14%-16%, and the shares outstanding should be approximately 44 million. Lastly, regarding our fiscal Q1 gross margins. Spot pricing for components and incremental logistics costs associated with the global chip shortage will impact gross margins by as much as several hundred basis points in the quarter. Before I turn the call over to the operator to take questions, let me echo Dave's point about where we are as a business. In a difficult operating environment, we set out to improve every aspect of our business. We strengthened our balance sheet, which means we improved our financial flexibility. We improved our leadership team and launched new products and services. Similar to last year, we have a new set of challenges ahead of us with constrained component supply. However, our balance sheet is strong, we have significant demand in healthy and growing markets, and we look forward to the future. I'll now turn the call over to the operator to begin Q&A. Operator? Thank you. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, please press the pound key. Your first question comes from the line of Amit Daryanani from Evercore. Your line's now open. Yep. Thank you very much for taking my question. I have two, I guess. First, if I just start off with the March quarter guide and help me out here, but if I look sequentially, your sales are down 12%, I think. EBITDA is down 26%, and the midpoint of your EPS guide, I think your EPS is down, like, 16%. Maybe just touch on what is driving that outsized EPS deleverage on a sequential basis and if something on the operating line or below the operating line that would be really helpful. Certainly, Amit. Thank you for the question. Effectively, what you're seeing is revenue being impacted by the chip shortage. As we said in the prepared remarks, absent the chip shortage, we would expect sequential growth. There is an impact on the gross margin line due to freight and spot market purchases, and that flows to the gross margin line, and we mentioned up to several hundred basis point impact on gross margins. We do expect our operating expenses to come in lower than they were sequentially, so we'll get some additional leverage on the OpEx line. That effectively is driving mitigating and helping on the EBITDA line. In the past quarter, we had a tax benefit, and in Q1, we expect to then have tax expense, which is impacting EPS. That's effectively what you're seeing relative to EBITDA to the EPS translation. Got it. That's actually really helpful. I guess the gross margin headwind of 700 basis points, do you think March quarter would be the peak from a gross margin headwind perspective? Can you improve gross margins, I guess, as you go beyond the quarter, beyond fiscal Q1 and Q2 quarter, for the full year? Yeah. We're very bullish on gross margin improvement over time. I still think that this gross margin ratio or line for the company when we normalize, is in the low 50%s, 50%-55%. We're seeing really great progress with Grant and the work he's doing on material cost reduction. The supply chain freight issues are still plaguing us, as we move freight back to the water, as air freight charges start to subside following, quite frankly, consumer air travel, commercial air travel, those will benefit the gross margin line. We should be back in the range where we were historically in the low 50%s. Got it. That's helpful. If I could just, the question, second one I guess I have is, you've been averaging 20% top-line growth in the back half of your fiscal year. I think one of the struggles everyone has is just to understand what should the long-term growth factors look like, be that in fiscal 2021 or beyond, and very specifically, how do you think video as a segment would stack up from a growth basis for the fiscal year? Chuck, maybe I take that. I remain very bullish. We're not going to provide specific guidance today. I think we'll provide a little bit more color in terms of the annual growth rates at the investor day in a week or so. I think what's probably the most instructive metric on video is the next generation video portfolio growing more than 700% year-over-year. We're seeing tremendous demand. The pipeline is very strong, and I think even with a few delays in certain geographies tied to slower vaccinations than people had hoped, I think for several quarters to come, we're going to see pretty massive demand on the video side. To me, that's tremendously bullish. We want to make sure that we are optimized and ready from an operating point of view to fully capitalize on that. The one other thing I would add to Chuck's comments on gross margin is another reason why we're very positive, I guess I should say, that kind of the low 50%s is the appropriate range, is all the work that the supply chain team is doing with regard to design to value. The tens of millions of dollars of savings that I mentioned in terms of targets here on the gross profit side are tied to the freight issues that Chuck mentioned, but also a lot of design effort that's going on away collaboratively between our suppliers and our engineering team. Understood. Thank you very much for the clarity. Thanks. Next question. Thank you. Your next question comes from the line of Paul Silverstein from Cowen. Your line is now open. Thank you for taking the questions. I know it's fluid and still early. With vaccination increasing across the globe, different economies, different regions at different places in that vaccination process, any insight you've gained in terms of the impact, whether the U.S. reopening, Germany reopening, the U.K. reopening? Again, I recognize different places are at different points, but one would think that macro recovery has certain implications for you and others. Any insight you've gained in terms of how that translates to revenue for better or worse? Yeah, I think it depends a lot by category. Let's just talk a little bit specifically category by category. Headsets are up roughly 60% year-over-year, Q4 over Q4. We are seeing a significant shift in mix, though. We're seeing fewer people buying the wired headsets and more people shifting to Bluetooth because they're settling in and saying this is going to be a long-term trend where 35%, 40% of the workforce is going to be in the office some days and at home some days. That's really driving sort of the uptick from a Bluetooth point of view. On the video side, there's tremendous demand as people are looking at building out the conference rooms. I think though we're seeing a shift away from sort of the concept of a huddle room, right? Every room becomes more of a huddle room in the sense that it requires video. If you look at the 90%+ of conference rooms that need to be built out from a video point of view, there's pretty substantial demand. The pipeline is very strong. The precise execution of that pipeline really varies by geography based on the return to work and the vaccination rates that people are seeing. I would say that's where we're seeing fairly long-term orders come in and people are saying, "Okay, we may have to move it a month or two or three based on what actually happens from a vaccination rate point of view." Then I alluded to this a little bit in my prepared remarks, the 30 millionth IP phone that we shipped. We're seeing a surprising, a wonderful recovery really on the voice side and we believe that what's triggering that is a return of SMBs back to the office, even prior to some of the biggest enterprises. There's a desire to get away from a traditional PBX phone and to get to more of a cloud-based solution tied to Zoom Phone or RingCentral, et cetera. That's driving a fairly significant demand at the SMB sector on the voice side. Can I, just on that last point, I want to make sure I understand what you're saying because when you look at the numbers, voice was $64 million in the quarter down from $95 million in the year-ago quarter and from $67 million. It was relatively flat or flat-ish sequentially, but it was still down a healthy clip. Maybe not surprising, but the demand you're referring to, those SMBs coming back, at least in the U.S. in revenue with it, is that you looking on a, I assume, on a week-to-week and month-to-month basis? Again, you can't see it for the quarter. I assume that strength is being reflected real time. That is correct. That's looking at pipeline data, right? It's looking at kind of the mix of products that's coming through within that revenue mix as well, to be clear. I think I said on one of my earliest conference calls, I forget which one it was, that I don't expect it to get back to the full $95 million, for example, that we had in Q4 of 2020. We are seeing a quicker recovery, I guess I would say, than I had originally anticipated, which is obviously a good thing, and it's driven primarily by the SMB market, which again, is a bit of a different dynamic than we expected. Whereas the larger enterprises are very focused on the video capability and the build-out of that over a longer period of time. All right. One last question if I may. We've heard from virtually every company in networking comm equipment on throughout technology about supply chain constraints. The overwhelming majority of those have cited challenges, increasing challenges, but that they're effectively managing and the issue isn't meaningful. It's de minimis moderate here now. There have been some others, not just yourself, that have cited a bigger impact, but you're one of the largest, if not the largest here now, in fact. Is that by virtue? Maybe that's not surprising given that y'all are in the device segment. The challenges you're seeing, is that across voice, video, and headsets? Is it predominantly one versus the other? Is it getting worse and worse week by week, month by month, or any incremental insight you can share with us? Yeah. Let me provide a bit more color commentary. I mentioned Grant a couple times when I talked about sort of the new hires that we've had. There's actually been a pretty significant set of new hires that Grant has brought in on top of that. As part of that, we've done a pretty comprehensive audit of all of our supplier relationships. I sit down and now I've talked to some of our biggest chipset manufacturers in the world at a very senior level and explained to them our roadmap, explained to them the 700% growth that we're seeing on the video side. They're thrilled to see that, right? I think the new leadership team that we have coming in has helped us tell a clearer story, has helped us tell a more compelling story, and that's getting a lot of attention from the supply base. To me, that's very encouraging, and that gives me very bullish sentiment, I guess I should say, with regard to the rest of this year. We also want to be very clear, which is there was a turnaround that took place here. I think we're on a great track, but we've had some categories growing 700%. To make sure that we're fully delivering on that rapidly increasing demand for our newest products, video, some of the audio products, but a lot of it's in video, we wanted to make sure that we're very clear on the guidance for this quarter. Chuck, anything you want to add to that? Yeah. Just I think, Paul, less of an impact on headsets, more of an impact on the new video products, not so much the legacy video products, and then a mixed impact on desk phones. I think, and then to your point, Paul, yeah, things are improving. I'd say we were more pessimistic a couple of weeks ago, and we're more optimistic today. The work that Grant and his team are doing, the work that Dave is doing, talking to CEOs of these major large-scale chip providers, it's getting better. We expect Q2 to be better and to improve. We're probably not going to be out of the woods in Q2, but we think that Q2 will be significantly better from a chip supply standpoint than our Q1. We would expect that we're maybe not fully clear by the December quarter, but hopefully back to normal by the December quarter. Chuck, I'll pause after you and the others on the call. I got to follow up on that because that's actually counterintuitive or counter to what I think most, if not all other companies have been saying about the supply constraints, in particular, Synopsys and Broadcom and other Synopsys suppliers. I just want to make sure I understand what you're saying. This significantly better, if I heard you correctly, in Q2, that's something specific to Q2, or you actually think that's indicative of an improving trend from a supply chain component availability standpoint? Yeah. Again, when I say Q2, I mean our September quarter. A lot of that is the work that Dave is doing, talking with the CEOs, the chip suppliers, building those relationships, the work that Grant and team are doing, as well as some purchasing in the spot market. We're not providing guidance, obviously, for our September quarter or December quarter, but we expect that things improve in terms of chip supply as this quarter closes and next quarter. We've contemplated in our guidance what we believe we have access to from a chip supply today, and we're working with longer term arrangements and trying to negotiate longer term arrangements with our chip suppliers. All right. I'll take the rest offline. I appreciate the insight. Thanks, guys. Thank you, Paul. Thanks, Paul. Thank you. Your next question comes from the line of Greg Burns from Sidoti & Company. Your line is now open. Good afternoon. How much if any, was revenue impacted this quarter from any supply component constraints? In our Q4 quarter, our March quarter, we did have impact for sure. We haven't quantified that specifically, I think revenue could have been, I would ballpark it at $10 million-$20 million higher. We still have elevated backlog, it's higher than we would like it to be. It has shifted a little bit from headsets to the new video products. We haven't provided specific numbers, I think realistically Q4 could have been much stronger even if we didn't have constraints in Q4. Okay. When we look at the headset business relative to what we saw from some others in the space, it seems like your growth isn't as strong or maybe you're losing some market share and maybe it was some of the supply chain issues. Maybe just talk about relative growth rates, if you're gaining or losing share in the headset market. Certainly. I think in terms of Go, Chuck. Go ahead. Okay. I don't want to necessarily compare us to competition because in different cases, we compete in different categories. If you look overall at the office headsets, the traditional kind of Bluetooth headsets, I think the growth rates have been fairly comparable. As you know, Greg, we have a higher concentration of contact center and that business is not yet recovering. Importantly, we have new products like our wireless speakers, the Sync line, Sync 20, 40, and 60, that has really great growth opportunities. We do have supply constraints in some of those products. I think we're doing quite well in some of the key categories that we compete in. Okay. In terms of those new products, the Sync, the speakerphones, and the P Series, where are we at in terms of the launch of those products? Are you currently selling them all in market? How has the initial market reaction to the products been? We have the Sync 20 and 40 in market, and we're just now releasing the Sync 60. I would say the market response to, especially the 40, has been phenomenal. It's a nice balance of size and portability, which seems to be resonating pretty well for the work-from-home folks. On the Studio P Series, we announced them in February. They are in market at relatively low volumes, honestly, given the supply issues. So far, the feedback on particularly the P15 has been excellent. We mentioned a few of the design awards that we won for the entire P Series, and I think you'll see a lot of ramp-up on that based on conversations we've had with customers, I think, as they're looking for something that works both in the office but also at home. Okay. You're talking about getting more of a business' infrastructure being more involved in the softwares and services. What does that entail? Is that going to mean Poly Lens becomes a bigger part of the overall package? How should we think of that? Maybe what the growth of services over time might look like, given that it's been down for the last couple of years. Greg, that one I'm going to ask you to come back on the 20th and hear more detail. I'd rather kind of put that comprehensively in place so that you can see a clear vision there. It's a very good question. All right. Thanks. Thanks, Greg. Question comes from the line of Meta Marshall from. Great. Thanks. Maybe first question for me, it kind of two questions that hit similar ideas, but you noted kind of a longer duration of video demand that you think you're seeing. In your conversations with customers, is that longer duration because people are kind of outfitting in a more orderly fashion? Maybe they want to do 10% of their conference rooms a month, or is it that you expect kind of different customers to hit at different times? Maybe similar question on the desk phone side. Is the demand pickup that you are seeing, is that specific to maybe hoteling setups that are going into place or maybe just refresh activity that was paused in 2020 finally starting to take place? Thanks. This is Dave. Good question. On the video side, we're seeing a couple factors. Some of it is a move from, I guess what I would call on-premises gear to the cloud, and that tends to be fairly industry specific. We're seeing a fair amount of activity in financial services, for example, where people are looking at a couple of the cloud providers and looking to make a transition. As they look at that, they're looking at POCs on the hardware components of that to make sure that they fully understand all the, I guess what I would call sort of transformation steps that they need to take to go from on-prem to cloud. A lot of it's happening right now, but I would say the revenue will ramp once they get through the POCs, they make a final decision in terms of the cloud collaboration platform that they want to use, they start to roll the hardware out. We're expecting that to continue over the next few quarters, and that's a global phenomenon, with a lot of these very large companies. Specifically, with regard to some of the longer-term question marks that I mentioned, in Europe, it varies by country tremendously, the vaccination rates that we're seeing. There's been a few countries where people have been about to place orders and saying, "Well, that might be a three-month delay." We're still very interested in doing it, but we got to figure out exactly when the vaccination rate's going to get to a point where the government's going to allow us to actually go back into the office. You bump along with POCs for a while, and then you see sort of a pretty substantial pull of the trigger as they try to actually execute on it. The audio stuff is twofold. The voice stuff that I mentioned is twofold. One is we're seeing direct demand now for SMB customers, especially here in the States, coming back and wanting to get off of whatever PBX system they had and wanting to get something that is Teams or Zoom or RingCentral based. Those are direct orders that are happening now. With regard to the larger enterprise, it's a bit of the same sort of POC mindset. They've made the decision to get away from on-premises gear, and they're kind of walking their way in, and they're saying, "Okay, we're going to do a bit of a video trial, we're going to do a bit of an audio voice trial, and we'll see how that kind of happens over time." Kind of a bunch of different kind of dynamics there to your question, if that makes sense. Yeah, that's great. Thank you. Your next question comes from the line of Paul Chung. Your line is open. Hi, this is Paul Chung on for Coster. Thanks for taking my question. Just on the sell-through dynamic on, I think slide 17, if you could confirm, is that just for new products in video? If you could comment on kind of the balance between overall sell-through versus sell-in in video. You mentioned channel inventory was kind of flattish overall, any comments there? Certainly, Paul. Yeah, slide 17 shows the trend in sell-through for new video products, specifically the Poly Studio X Series, Poly G7500, the new Poly Studio P Series. We've really seen incredible growth, 700% year-over-year. We expect that, absent chip shortage, that trend is continuing. These new products are selling incredibly well. Today, two-thirds of our revenue comes from the new products in video. Only a third from the legacy products and 90% of the units. Demand is far outstripping supply, and we would expect that to continue. As it relates to channel inventory, I would say we're in a pretty good place at the end of the quarter. Now, as the chip shortage is manifesting, we expect channel inventories to go down significantly. In some cases, they're unhealthily low in some areas, and they're appropriate in others. I think on balance, it's probably a little lower than it should be right now, but it's healthy. I would expect that unfortunately, channel inventories will decline this quarter, and we expect backlog would continue to grow. Got you. Thanks for that. That's very helpful. As we think about the kind of makeup of video collaboration, can you kind of provide some extra details around the split between webcams or desktops and huddle rooms and large conference rooms, and then kind of the respective growth rates you saw for each of those segments and how you think that kind of trends over time for this year? Is there some kind of bulk buying ahead of workers going back to the office, or is this kind of a sustainable piece here? I think we'll cover more of that at Analyst Day, but maybe Dave, you can provide a little bit of color now. Yeah, I was going to actually just suggest the same thing. We're actually going to have Beau Wilder, who runs our video business unit, presenting at Analyst Day. He's going to be able to go a lot deeper. Again, I think sort of as a broader context, which I think should be very helpful. We're seeing similar answer, I guess, to what I gave Meta Marshall. We're seeing a lot of trialing now with sort of standalone, what we call single codec devices, our Studio X30 and our Studio X50 products. We are seeing people start to experiment a little bit back with the larger conference rooms, thinking that maybe they need something a little bit larger that's suitable for sort of COVID spacing. It's a bit of a tale of two cities. Let me let Beau provide a bit more detail, I think in a week. I think that'd be more helpful. Okay. Last question. Very good performance in Enterprise headsets. Is this the kind of new quarterly run rate north of $200 million kind of moving forward? You mentioned kind of switch to Bluetooth relative to maybe wired. Will that weigh on margins at all to any extent? Are you seeing any evidence from kind of contact center demand coming back? Thank you. Let me answer that last one first, and then Chuck can feel free to weigh in. We're seeing very little uptick in demand on the contact center side. I think there's a fair migration to USB, and maybe now they're evaluating Bluetooth. No, is the simple answer to that. That's really where the margin benefit was. With regard to Bluetooth and Blackwire, there's obviously a significant ASP difference, but there's not as much of a margin difference. We're glad to have the higher ASP products because I do think they are stickier. We'll see how that migration happens. Chuck, anything you want to add to that? Yeah, I would just say that's right. I mean, your margin percentage is a little higher in Bluetooth than Blackwire, not meaningfully, margin dollars are quite a bit higher. As Dave mentioned, the migration from corded to cordless is a real benefit both to revenue and margin dollars on a per unit basis and should be beneficial. Relative to your question on, is this the kind of like the new level for headsets? I think so. I mean, if you look at industry growth rates, we'll talk about this more at Analyst Day in a week, they're projecting headset growth from these levels from a TAM standpoint. It's hard to say, and we're not providing detailed quarterly guidance here, but I think we do expect the market to continue to expand, and I think given our leadership position and the strength of our technology and some of the new product offerings, we expect that we can grow along with or perhaps even faster than the market. Thank you. Very helpful. Thank you. Your next question comes on the line of Paul Silverstein. Your line is open. Thanks for giving me a second bite at the Apple. I should have asked you, Shimolee, the $60+ million of foregone revenue in the June quarter, based upon the guidance you gave, if you were up sequentially, it'd be at least $60 million. I assume it would be even more than that, because that won't be up very much at all. That revenue due to supply constraints, I assume, because everybody's in the same boat with respect to supply constraints, that it's simply a matter of deferring shipments and rev rec as opposed to losing that revenue to Logitech or other competitors. Let me ask you the open question. Any risk that other suppliers will be able to satisfy the demand that goes away, or is it simply just a timing issue? This is Dave. I'm going to answer it as a tale of two cities and Chuck can feel free to provide more color if he wants. With regard to some of the SMB buyers on some of our, I hate to even use this word, less differentiated products, some of our voice products, for example, some of the phones. Yeah, I think some of that demand is a bit perishable, because it's just less unique from a technology point of view. With regard to the largest enterprises, the Fortune 500, Global 1000s, we have a long-term relationship with many of these companies, and they're looking for a multi-year rollout. I think a quarter or so of hiccup is not the end of that. There's certainly a longer-term relationship there. I think a lot of the video stuff is going to have a much longer shelf life, I guess, is what I would say. Of course, we're trying to execute on it as quickly as possible for all of our sakes. On the voice side, there is some risk. Chuck? Yeah, I think that's well said, Dave. Can I ask just one quick follow-up? Any way to quantify how much it's one versus the other? I don't have a good metric. Yeah. Sorry, Chuck. You can tell that you. Yeah. You can't kick me before I get the answer out. I apologize. You don't have that information? Yeah, I think ultimately, Paul, what I would say is the pipeline supports significant growth. The pipeline deals tend to be enterprise transactions with large-scale enterprises. I think that they're doing long-term RFPs, we'll retain that business. The commodity purchases that are short-term, the long-tail SMB, I can't really quantify or break that out for you. I guess that's the real question. What I'm driving at obviously is to what extent does this impact your long-term demand, your long-term revenue growth rate? How much of this is customers that will shift away from Poly to one of your competitors because they have the ability to satisfy your now demand and create a new relationship away from you? It sounds like you're saying that's a small piece of the. I don't think it impacts the long-term thesis at all. I really don't. I think that this is a market where we've seen our competitors not be able to meet supply and demand, we've had the same challenges. When you win a long-term strategic account, then they stick with you. If it's truly a jump ball, we may lose that, but I think we would get that back right away. I don't think this changes the long-term thesis at all. All right. I appreciate it. Thank you, Dave. Thanks, Paul. Thank you. Your next question comes from the line of Greg Burns from Sidoti & Company. Your line is now open. Sorry, I tried to hop out. Paul beat me to it, so my question's been answered. Thanks. Thanks, Greg. Thank you. There are no further questions at this time. Turning it over back to you, Dave. Thanks, all. Really appreciate the engagement and the time. I'm going to reiterate actually what Chuck said. I remain very optimistic about the longer-term thesis here. Again, I'm fairly new on the CEO role, it's never fun to issue a downward guidance, but I would rather just be straight with you all. By the same token, I remain very bullish for the year and for the next couple of years to come. Again, we'll share much more of that at Analyst Day, and appreciate everyone's time and look forward to talking to you all next week. Thank you. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.