Plantronics 1998 Annual Report Download

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Plantronics :ANNUAL REPORT :1998

Table of contents

  • Page 1
    Pla ntroni cs : AN N U AL R E P O R T : 19 9 8

  • Page 2
    ...S . AN D S U S AN GET T HINGS D O NE IN T HE WIT HO UT MY SIST ER M ISSING UP AT AN Y T HE P L AN T R O N I C S FLIG H T W H I LE G AR D E N PI C K I N G T HE AI R S E T â„¢ C O R D L E S S AD AP T E R . "M Y AR R I V E S WAL K I N G AT "I ' M 4 : 0 0 ," TO SH E HER T E LLS F I LE S U S AN...

  • Page 3
    ...E R S E RV I C E HIS R E PR E S E N T AT I V E S PE AK S AS S U R I N G LY I N T O S a n F r a n c i sc o , C a l i f o r n i a P L AN T R O N I C S S U P R A® RET URNS T O HIS H E AD S E T , T E L L I N G TOM S T O C K B R O K E R T O M M I LLE R M E S S AG E S . NO T T O WO RRY, AS T H ERE...

  • Page 4
    ... L S R O AD M IC RO NO ISE. GOT TOY TOM PH O N E RED UCES N O W, G I F T ," W H I LE S T I LL T AK I N G C ALLS . U SED BY A NUMBER R E L AX ... AB LE , H AN D S - F R E E H E AD S E T . T E LLS "D O N ' T S T ART T H E PART Y W I T H O U T M E !" "G L AD I C O U LD H E LP," S AM AN T H ...

  • Page 5
    ... A D S E T I N 1 9 6 2 AN D I S AN D T O D AY THE WORLD 'S L AR G E ST D E SIGNE R , M AN U F AC T U R E R M AR KE T E R OF H E AD SE T P RO D U C T S. IN AD D I T I O N , THE C O M PAN Y M AR K E T P RODUCES PRODUCTS F O R SE GME NT S, TH E COMP UTER AN D MOBILE S P E C I ALT...

  • Page 6
    ... Diluted earnings per common share Shares used in diluted per share calculation Number of employees FI N AN CI AL P OSI TI ON $195,307 $ 29,671 $ 1.67 17,792 1,515 $236,112 $ 39,189 $ 2.15 18,223 1,817 Total assets Net working capital Stockholders' equity $127,241 $ 63,341 $ 20,882 $165,475...

  • Page 7
    1 3 4 .0 1 6 9 .9 1 8 3 .0 1 9 5 .3 2 3 6 .1 1 1 .6 1 3 .7 1 4 .5 250 225 200 175 150 1 7 .5 18 16 14 12 10 8 6 4 2 0 125 100 75 50 25       7 .0     SAL E S (dollars in millions) I N VE ST M E N T I N R E SE AR C H &...

  • Page 8
    ... U.S. and International Sales, our Plantronics Limited subsidiary in England, our Walker Equipment and Mobile Systems Divisions, and headed up all our manufacturing and distribution operations. We are also pleased to welcome Benjamin Brussell, Vice President - Corporate Development; Farhad Kashani...

  • Page 9
    ... e r s' E q u i t y F in an cial RE VI E W 6 N o t e s t o C o n so l i d a t e d F i n an ci al S tatem en ts 17 M a n a g e m e n t' s D i sc u ssi o n a n d An a l ysi s 22 Re p or t of I n d e p e n d e n t Ac c o u n t a n t s 23 S elected F i n an ci al D ata 24 C or p or a te Of f i ce...

  • Page 10
    ...receivable, net Inventory D eferred income taxes O ther current assets Total current assets Property, plant and equipment, net O ...25,018) 53,436 $165,475 Less: Treasury stock (common: 963 shares in fiscal year 1998, net of sales) at cost Total stockholders' equity Total liabilities and stockholders...

  • Page 11
    ... 19 9 6 19 9 7 Net sales Cost of sales Gross profit O perating expenses: Research, development and engineering Selling, general and administrative Total operating expenses O ...p a n yi n g n o t e s a r e a n i n t e gr a l p a r t o f t h e se c o n so l i d a t e d f i n a n c i a l st a t...

  • Page 12
    ... CI N G ACT I V I T I E S: Purchase of treasury stock Proceeds from sale of treasury stock Proceeds from exercise of stock options Cash provided by (used for) financing activities E F F E C T O F E X C H A N G E R AT E C H A N G E S O N C A S H Net increase (decrease) in cash and cash equivalents...

  • Page 13
    ... n Ca p i t a l Cu m u l a t i v e Tr a n sl a t i on Ad j u st m e n t Ac c u m u l a t e d Equity ( D eficit ) Tr e a su r y S t oc k S t oc k h ol d e r s' Equity ( D eficit ) (IN T H O U S AN D S , E X C E P T S H AR E AM O U N T S ) Sh a res Am ou n t Balance at March 31, 1995 Stock option...

  • Page 14
    ... manufactures and markets specialty telephone products, such as amplified telephone handsets and specialty telephones for hearing- impaired users and noise-cancelling headsets and handsets for use in high-noise environments. NOT E. 2 SU M M AR Y OF SI GN I FI CAN T ACCOU N TI N G P OLI CI ES...

  • Page 15
    ... by management based on...reported...assembly, research and development and sales and marketing in the United Kingdom, an international finance, customer service and logistics headquarters in Netherlands, and sales offices in Canada, Asia, Europe, Australia and South America. For fiscal 1997 and 1998...

  • Page 16
    ...EPS, which replaces primary EPS, is computed by dividing net income available to common stockholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Unlike the computation of primary EPS, basic EPS excludes the dilutive effect of stock options...

  • Page 17
    ...ACCOU N TS R ECEI VABLE: Accounts receivable from customers Allowance for doubtful accounts $38,278 (1,297) ...O R Y: Finished goods Work in process Purchased parts $11,056 1,647 7,339 $20,042 $13...useful life 10-30 years) Machinery and equipment (useful life 2-8 years) Less accumulated depreciation...

  • Page 18
    ... SP LI T In July 1997, the Company's stockholders approved an increase in the authorized shares of Common Stock of Plantronics, Inc., to 40,000,000. O n September 2, 1997, the Company effected a two-for-one stock split in the form of a stock dividend to stockholders of record as of August 18, 1997...

  • Page 19
    ...scal 1996, 1997 and 1998 consisted of the following: ...net of federal benefit O ther, net...reporting and income tax purposes. Significant components of the Company's deferred tax liabilities and assets are as follows: M AR C H , 19 9 8 (IN T H O U S AN D S ) 19 9 7 D eferred gains on sales...

  • Page 20
    ... eligibility requirements, substantially all domestic employees are covered by quarterly cash and annual deferred profit sharing plans. Employees also have the option of participating in a salary deferral plan qualified under Section 401(k) of the Internal Revenue Service Code. T he Q uarterly Pro...

  • Page 21
    ... is engaged in developing, manufacturing, marketing and servicing telecommunications equipment. No one customer accounted for 10% or more of total revenue from consolidated sales for fiscal year 1996, 1997 or 1998. GEOGR AP H I C SEGM EN TS In geographical reporting, revenues are attributed to the...

  • Page 22
    ... approved the PI Parent Corporation 1993 Stock Plan (the "1993 Stock Plan"). Under the 1993 Stock Plan, 4,159,242 shares of Common Stock (which number is subject to adjustment in the event of stock splits, reverse stock splits, recapitalization or certain corporate reorganizations) are reserved for...

  • Page 23
    ....80 $ 6.45 $ 6.49 $ 7.46 $27.37 $ 3.49 $18.53 $11.29 Significant option groups outstanding at March 31, 1998 and related weighted average prices and lives are as follows: O p t i on s O u t st a n d i n g W e i gh t e d N um ber O u t st a n d i n g As of M a r c h 3 1 , R a n ge of E xe r c i se...

  • Page 24
    ... the individual Vice Presidents' base salary. To encourage participation, the Company's Treasury Stock will be sold by the Company to executives under this voluntary purchase program. T he price will be equal to the greater of: 95% of the price set by the Board of D irectors on an annual basis or...

  • Page 25
    ... N T his Annual Report contains forward-looking statements...increased penetration of headsets into the office and home office market segments. T he Company's net sales to customers outside the United States, predominately in Europe, were $49.0, $59.6 and $72.4 million in fiscal 1996, 1997 and 1998...

  • Page 26
    ... source of currency risk in Europe is due to receivables denominated in local currency. T his has been largely offset by payables denominated in local currency. T his natural hedging approach has substantially limited the Company's net exposure to the effect of currency ï¬,uctuations and management...

  • Page 27
    ...Company's sales have been made through distributors to call center users such as telemarketing personnel, reservation agents, telephone operators and air traffic controllers. T he Company has recently expanded its marketing efforts to sell lightweight communications headsets to the business, mobile...

  • Page 28
    ... cost increases in supplies of component parts from vendors, and the availability and cost of labor, also may cause ï¬,uctuations in gross profit percentages. Historically, the Company has seen steady increases in customer demand for its products and has generally been able to increase production...

  • Page 29
    ...P E R AT I O N S A N D S A L E S Approximately 30.7% of the Company's net sales in fiscal 1998 were derived from customers outside the United States. In addition, the Company conducts substantially all of its headset assembly operations in its Mexican manufacturing facility and obtains most of the...

  • Page 30
    ... Board of Directors and Stockholders of Plantronics, Inc. In our opinion, the...Plantronics, Inc. and its subsidiaries at March 31, 1997 and 1998...1998, in conformity with generally accepted accounting principles. T hese financial statements are the responsibility of the Company's management...management...

  • Page 31
    ... D AT A Net sales Income (loss) from continuing operations Mandatorily redeemable preferred stock dividends Net income (loss) Diluted net income (loss) per..., 19 9 7 (IN T H O U S AN D S ) 19 9 4 19 9 5 19 9 6 1998 B A L A N C E S H E E T D AT A Total assets Long-term debt $ 67,026 85...

  • Page 32
    ... Senior Vice President - Finance and Administration and Chief Financial Officer C O R P O R AT E I N F O R M AT I O N Corporate Headquarters 337 Encinal Street Santa Cruz, California 95060 Telephone: 408-426-6060 Fax: 408-426-6098 http:/ / www.plantronics.com Registrar and Transfer Agent Boston...

  • Page 33
    ... o Plantronics Limited Interface Business Park Bincknoll Lane Wootton Bassett, Wiltshire SN4 8Q Q England Telephone: 011-44-1793-848999 Fax: 011-44-1793-848853 Plantronics B.V. Antareslaan 9 2132 JE Hoofddorp Netherlands Telephone: 011-31-23-5648010 Fax: 011-31-23-5626790 Plantronics Canada Limited...

  • Page 34
    P l a n t r o n i c s, I N C. 337 E N C I N AL Stre e t, Sa n ta C r u z CA 95060