Plantronics 1998 Annual Report Download - page 8

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Letter to STOCKHOLDERS
DEAR STOCKHOLDERS,By any measure, 1998 was a banner year. We achieved solid growth in revenues and
earnings across all market segments and continued to lead the industry in customer satisfaction. In fiscal 1998,
revenues rose 20.9% to $236.1 million from $195.3 million in 1997. Net income for the year was up 32.1% at
$39.2 million, or $2.15 per diluted common share, compared with $29.7 million and $1.67 per share in the prior
year. The results demonstrate the accelerating acceptance of headsets in nearly every part of our lives as a key
productivity tool, a convenient personal communications device, and as a means to reduce the physical strain and
tension of long conversations. Whether in the car, at home, in the factory or at the office, Plantronics headsets
make communications easier and more effective. The strong performance of the Company was acknowledged by
the market, with the Company’s stock price rising 89.5% over the course of the year and a market capitalization
of $742.6 million at year end. The price of our common stock has consistently performed well since the IPO
in 1994, with a compound annual growth rate of 56.1%.
CHALLENGES AHEAD While we believe that Plantronics is ideally positioned to continue this substantial
growth, we have established the following challenges for ourselves in order to meet the needs of our customers and
to stay at the forefront of the personal communications marketplace:
Improve the cost effectiveness of every facet of our business, increasing our advantage as the industry’s
low cost producer of the highest quality products.
Invest in new, advanced products and in new market segments in order to maintain our growth and
to continue bringing our current and potential new customers the quality and dependability that
have set Plantronics apart from our competitors.
Deploy all assets on the highest value-added opportunities.
Focus on problem avoidance rather than problem solving.
A STRONG TEAM To implement these challenges, we have built a strong, effective and hard working team. Ken
Kannappan was promoted to President and Chief Operating Officer of the Company. Over the past three years
he has made a significant, positive difference for the Company as he successfully managed 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, Senior Vice President–Operations; and H. Craig May,
Senior Vice President– Marketing to the Company. Together, they broaden an outstanding senior management
team capable of effectively leading our worldwide staff of Plantronics associates— all committed to maximizing
shareholder value.
Robert S. Cecil
Chairman and Chief Executive Officer