Plantronics 1999 Annual Report Download

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
ANNUAL REPORT
1999

Table of contents

  • Page 1
    try this. 1 9 9 9 A N N U A L R E P O R T

  • Page 2
    ... P E R AT I O N S R evenue Earnings before extraordinary item Diluted earnings before extraordinary item per common share Shares used in diluted per share calculations N umber of employees FI N AN CI AL P OSI TI ON $236,112 $ 39,189 $ 2.15 18,233 1,817 $286,261 $ 55,253 $ 3.02 18,282 1,825 Total...

  • Page 3
    ...cellular and wireless telephones. In addition, the Company's Walker Equipment division produces specialty phones for the hearing impaired and amplified telephone handsets.The Company's broad range of communications products are sold and supported through a worldwide network of authorized Plantronics...

  • Page 4
    ..., people can talk and still have their hands free to use a computer. In the car, people can have a conversation and still have their hands free to drive more safely. T here is nothing natural about having to hold a handset every time you need to speak on the phone. Increasing headset adoption is our...

  • Page 5
    ... to increase our focus on marketing programs to cooperate with our channel partners in promoting adoption of headsets. During fiscal 1999 we strengthened the management team with the addition of N eil Snyder, Vice President and General Manager of the Computer Audio Systems Division, Lyndall Fry...

  • Page 6
    ... the world, more and more people are enjoying the benefits of a Plantronics headset. T hey appreciate the increased comfor t, reduced stress an d improved pro du ctivity th at o u r products deliver. These benefits, and the customer satisfaction they create, are helping to drive our business growth...

  • Page 7
    ... SET , T HERE'S N O N EED T O STOP FOR A PHON E C ALL WHILE WORKIN G AT HOME OR ON THE RUN - YOUR HAN DS ARE FREE TO WORK WHILE Y OU TALK. IN C REASED PRODUCTIVITY : HAN DS- FREE CON VEN IEN CE TRAN SLATES TO IN C REASED PRODUC TIVITY - A RECEN T STUDY CON CLUDED THAT ADDIN G PLAN TRON ICS HEADSETS...

  • Page 8
    ...T O STOP FOR A PHON E C ALL WHILE WORKIN G AT HOME OR ON THE RUN - YOUR HAN DS ARE FREE TO WORK WHILE Y OU TALK. IN C REASED PRODUCTIVITY : HAN DS- FREE CON VEN IEN CE D O I N G ? ... TRAN SLATES TO IN C REASED PRODUC TIVITY - A RECEN T STUDY CON CLUDED THAT ADDIN G PLAN TRON ICS HEADSETS TO...

  • Page 9
    com for t E R G O N O M I C AL LY D E S I G N E D T O F I T C O M F O R TAB LY f lexibility clar ity O U R P R O D U C T S G I V E YO U TH E H I G H E S T Q U ALI TY AN D C LAR I TY O F S O U N D THE FREEDOM TO DO OTHER TH IN GS W H ILE ON TH E P H ON E At Plantronics, we believe that good d e si ...

  • Page 10
    ...R AT I O N S C O N S O L I D AT E D S T AT E M E N T S OF CASH FLOW S C O N S O L I D AT E D S T AT E M E N T S OF STOCKH OLD ERS' EQU I TY N O T E S T O C O N S O L I D AT E D F I N A N C I A L S T AT E M E N T S REPORT OF I N DEPEN DEN T ACCOU N TAN T S M AN AGEM EN T'S D I SCU SSI ON AN D AN...

  • Page 11
    ...net Inventory Deferred income taxes O ther current assets Total current assets Property, plant and equipment, net ...: Common stock, $0.01...L P A R T O F T H E S E C O N S O L I D AT E D F I N A N C I A L S T AT E M E N T S . (25,018) 53,436 $165,475 PLAN TRON I CS AN N U AL REPORT 1 9 9 9 page 9

  • Page 12
    ..., development and engineering Selling, general and administrative Total operating expenses ... retirement of debt, net of taxes (note...N O T E S A R E A N I N T E G R A L P A R T O F T H E S E C O N S O L I D AT E D F I N A N C I A L S T AT E M E N T S . page 10 PLAN TRON I CS AN N U AL REPORT 1 9 9 9

  • Page 13
    ...net income to net cash provided by operating activities: Depreciation and amortization of property and equipment...stock Proceeds from sale of treasury stock Proceeds from exercise of stock options Cash provided by (used for) financing activities N et increase... I CS AN N U AL REPORT 1 9 9 9 page 11

  • Page 14
    ...EN SI VE I N COM E R E TAI N E D EAR N I N GS T R EASU R Y STOCK T OTAL STOCKH OLD ER S' EQU I TY Balance at March 31, 1996 Stock option compensation amortization Exercise of stock options Income tax benefit associated with stock options Purchase of treasury stock Sale of treasury stock Net income...

  • Page 15
    ...Plantronics, Inc. (the "Company"), introduced the first lightweight communications headset...generally accepted accounting principles requires management to make estimates and assumptions that affect the reported...and 1999 ... of property, plant and equipment are principally calculated using the...

  • Page 16
    ... and development and sales and marketing in the United Kingdom, an international finance, customer service and logistics headquarters in the N etherlands, and sales offices in Canada, Asia, Europe, Australia and South America. For fiscal 1997, 1998 and 1999, the functional currency of all foreign...

  • Page 17
    ... N o. 25, "Accounting for Stock Issued to Employees" and related interpretations, and to ... RECEI VABLE: Accounts receivable from customers Allowance for doubtful accounts $43,302 (1,752) $41,550 $49,133 (2,326) $46,807 I N V E N T O R Y: Finished goods Work in process Purchased parts $13,...

  • Page 18
    .... note 5. COM M ON AN D TREASU RY STOCK: 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...

  • Page 19
    N otes to consolidated financial statements note 6. I N COM E TAXES: Income tax expense for fiscal 1997, 1998 and 1999 consisted of the following: FI SCAL YEAR EN D ED M ARCH 3 1 , ( I N TH OU SAN D S) 19 9 7 19 9 8 19 9 9 Federal Current Deferred State Foreign $ 8,744 2,789 1,854 1,899 $...

  • Page 20
    ...is subject to a two year vesting schedule based on an employee's date of hire. Total annual and quarterly profit sharing contributions were $5.5 million, $6.9 million and $9.4 million for fiscal 1997, 1998 and 1999, respectively. note 8. M I N I M U M COM M I TM EN TS REN TAL AN D CON TI N GEN...

  • Page 21
    ... its operating segments. O P E R AT I N G S E G M E N T T he C ompany organizes the reporting segments based on geographic areas. T he nature of products, (telecommunications equipment), development, manufacturing, marketing and servicing are similar in each geographic area. The Company evaluates...

  • Page 22
    ... stock splits, recapitalization or certain corporate reorganizations) are reserved for issuance to employees and consultants of the Company, as approved from time to time by the Compensation Committee of the Board of Directors. The reserved shares include 980,000 shares in 1997 and 1,300,000 in 1999...

  • Page 23
    ...$ 3.49 $18.53 $11.29 $55.75 $ 4.91 $18.55 $25.19 Significant option groups outstanding at March 31, 1999 and related weighted average prices and lives are as follows: OP T I ON S OU T STAN D I N G OPTI ON S EXERCI SABLE N U M ... 27.94 0.00 $ 9.06 PLAN TRON I CS AN N U AL REPORT 1 9 9 9 page 21

  • Page 24
    ... volatility of 28% and risk free interest rate of 5.6%. For 1999 the assumptions were: dividend yield of 0%, an expected life of 5.6 years, expected volatility of 39% and risk free interest rate of 5.3%. Volatility is a measure of the amount by which a price has ï¬,uctuated over a historical period...

  • Page 25
    ... times the individual Vice Presidents' base salary. To encourage participation, the Company will sell the Company's Treasury Stock to executives under this voluntary purchase program. The price will be equal to the greater of: 95% of the price set by the Board of Directors on an annual basis or 85...

  • Page 26
    ...nancial position of Plantronics, Inc. and its subsidiaries at March 31, 1998 and 1999 and the results ... statements in accordance with generally accepted auditing standards which require... financial statements are free of material misstatement. An...1999 page 24 PLAN TRON I CS AN N U AL REPORT 1 9 9 9

  • Page 27
    ... in Europe, with sales in the Asia Pacific/ Latin America region and Canada growing at a slower rate. International sales in fiscal 1999, 1998 and 1997 have accounted for approximately 30.5% of total net sales in each of these periods. Gr oss P r of i t Gross profit in fiscal 1999 increased 25...

  • Page 28
    ... expenses, such as sales commissions and employee profit sharing. General and administrative expenses also increased due to the addition of two senior corporate executive positions. O perating income in fiscal 1999 increased 33.9% to $83.5 million (29.2% of net sales), compared to $62.4 million...

  • Page 29
    ... telephone equipment. F i n a n c i n g Ac t i v i t i e s In the fiscal year ended March 31, 1999, we sold 29,301 shares of our treasury stock... of our suppliers and customers are compliant with the requirements of the year 2000. S t a t e of R e a d i n e ss PLAN TRON I CS AN N U AL REPORT 1 9 ...

  • Page 30
    ...2000 compliance program. The compliance program addresses three key elements: (i) internal infrastructure, addressing internal hardware and software and non-information technology systems; (ii) supplier readiness, addressing the preparedness of our suppliers of goods and services; and (iii) customer...

  • Page 31
    ...we may face. O ur inability to remedy our own year 2000 problems or the failure of third parties to do so may cause ...2000 issue. We expect to substantially complete our contingency planning by July 1999. These plans may include identifying and securing alternate suppliers...AL REPORT 1 9 9 9 page 29

  • Page 32
    ... E N T OF O P E R AT I O N S D ATA N et sales Income before extraordinary item Extraordinary item, net of taxes N et income $169,923 20,808 - $ 20,808 $182,959 25,470 - $ 25,470 $195,307 ...0.79 - 0.79 $ 0.81 0.06 0.75 $ $ $ $ $ $ $ $ page 30 PLAN TRON I CS AN N U AL REPORT 1 9 9 9

  • Page 33
    ... 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 345 Encinal Street Santa Cruz, California 95060 Telephone: 831- 426-5858 Fax: 831- 426-6098 http:// www.plantronics.com * Mr. Registrar and Transfer Agent...

  • Page 34
    ... web site at www.plantronics.com STOCKH OLDER The Company's Common Stock, $.01 par value, has traded on the N ew York Stock Exchange, under the symbol "PLT," since the Company's initial public offering on January 19, 1994. The initial offering price was $6.25 per share. The following table sets...

  • Page 35
    ...Equipment D ivision Portmanna Clonee, Co. Meath Southern Ireland Telephone: 011- 353-1-878-1934 Fax: 011- 353- 1-825-2238 Plantronics K. K. 4009 Cloud Springs R oad R inggold, Georgia 30736 Telephone...N etherlands Telephone: 011-31-23-5648010 Fax: 011-31-23-5626790 Plantronics Canada Limited Hibiya...

  • Page 36
    , .                       ,         .            .   