Plantronics 2003 Annual Report Download

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A little change can do you good.
Plantronics 2003 Annual Report

Table of contents

  • Page 1
    Plant ronics 2003 Annual Report A lit t le change can do you good.

  • Page 2
    ...: Plant ronics headset s are helping people communicat e on t he go and at home as w ell as in t he w orkplace. Our product s have become an int egral part of t he daily lives of millions of people around t he w orld, and t he market s w e serve off er great pot ent ial. PLANTRONICS: Plant ronics...

  • Page 3
    ...-w it h prof ound implicat ions f or how people communicat e. When w e look at t he w orld around us, w e see t w o compelling trends. More and more people using headsets to improve their lives. And a wealth of opportunities f or people t o adopt our product s. The t ime f or headset s has arrived.

  • Page 4
    " ...I need bot h hands f ree w hen I'm on t he phone..." For Steve, doing work means using the phone while he marks up documents, scribbles notes, sketches out ideas. Now that he uses a headset, he doesn't miss a word. He never loses an idea. And he no longer gets that annoying crick in his neck ...

  • Page 5
    ... answ er t he call..." Tanya's "office" is seven stores throughout the city, and she's in the field every single day, checking out her locations, strolling through competitors' stores, looking for problems, trends and inspiration. Since she added a headset to her cell phone, she stays in touch-with...

  • Page 6
    ... that morning, Yoshi experiments with new dishes-even as he shares ideas with other chefs, talks to suppliers, and chats with friends on his new headset telephone. Today, Yoshi can stay connected wherever he happens to be. " ...I used t o need t hree hands t o run my business..." 6 7

  • Page 7
    ... ...my client never know s w hen I'm using my headset ..." Nor does Morgan's client know when she is collecting a fax or looking up a contact on her handheld or scrolling through the 12 e-mails that arrived while she was on the phone. Thanks to her headset, Morgan stays connected to the things that...

  • Page 8
    ... can easily check voice mail w hile making a connect ion..." It was a short flight, but when William got to Phoenix, 11 new voice mail messages had arrived. With his new headset, he can respond to his messages without missing a step. Transit time can be surprisingly productive-with the right tools...

  • Page 9
    Her cordless telephone freed Elizabeth from the tether of the phone line, but her newest accessory-her headset-lets her talk more naturally and listen more comfortably whether she's relaxing in front of the fire or working in the garden. Now her most ...

  • Page 10
    ... to headsets from Plantronics. We've gone from space-age technology used by the first astronaut on the moon to innovative designs used by tens of millions of people. Our products deliver comfort, convenience and clarity as well as a sense of style, thanks to our ability to fuse state-of-the-art...

  • Page 11
    ...31, in t housands, except per share dat a 2002 2003 OPERATIONS Revenue Net income Dilut ed earnings per common share Shares used in dilut ed per share calculat ions FINANCIAL POSITION $ $... 00 01 $68 03 Return on Sales Investment in Research and Development (in millions) Cash from Operating ...

  • Page 12
    ... RD - LO O K I N G I N FO RM A TI O N This Annual Report ...number of factors, including but not limited to the following: the office, contact center, mobile, computer, residential, and other specialty product...accounting policies, among others, affect its more significant judgments and estimates used...

  • Page 13
    ...Recognition. We recognize revenue net of estimated product returns and expected payments to resellers for customer programs including cooperative advertising, marketing development funds, volume rebates, and special pricing programs. Product returns are provided against revenues upon shipment, based...

  • Page 14
    ... return on investment. General and administrative expenses increased as a percentage of net sales in fiscal 2003 compared to fiscal 2002, mainly driven by higher legal expenses, a larger provision for doubtful accounts, and the inclusion of a full year of expenses relating to Ameriphone. General...

  • Page 15
    ...in tooling for new products, furniture and fixtures and leasehold improvements for facilities expansion. In January 2002, we purchased Ameriphone, a leading supplier of amplified telephones and other solutions to address the needs of individuals with hearing impairment and other special needs. The...

  • Page 16
    ... income taxes Income tax expense Net income Net income per share - basic Shares used in basic per share calculations Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Deferred tax liability Total liabilities Commitments and contingencies (Note...

  • Page 17
    ...$ 285,350 - - (44,826) 904 2,241 2,389 (44,826) 2,245 Purchase of treasury stock Proceeds from sale of treasury stock Proceeds from exercise of stock options Cash (used for) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash...

  • Page 18
    ... include the accounts of Plantronics and its subsidiary companies. Intercompany transactions and balances have been eliminated upon consolidation. Revenue Recognition. Revenue is recognized net of estimated product returns, exchanges, credits for price protection, volume rebates, and sales...

  • Page 19
    ... plans based on the fair value of options granted. We have elected to continue to account for stock-based compensation using the intrinsic value method prescribed in Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees" and related interpretations, and to provide...

  • Page 20
    ... of an entity's accounting policy with respect to stock-based employee compensation on reported net income and earnings per share in annual and interim financial statements. SFAS 148 does not amend SFAS 123 to require companies to account for employee stock options using the fair value method...

  • Page 21
    ...net: Accounts receivable Less: sales returns, promotions and rebates Less: allowance for doubtful accounts Inventory, net: Finished goods Work in process Purchased parts Less: allowance for excess and obsolete inventory Property, plant and equipment, net: Land Buildings and improvements (useful life...

  • Page 22
    .... During fiscal 2003, the Board of Directors authorized Plantronics to repurchase an additional 3,000,000 shares of Common Stock. During fiscal 2003, we repurchased 2,874,800 shares of our Common Stock in the open market at a total cost of $44.8 million, and an average price of $15.56...

  • Page 23
    ... Hello Direct. The court granted a new trial on this issue alone. In further post trial motions, we received awards of attorney's fees and costs of $1.67 million. GN Hello Direct appealed. We are defending the appeal vigorously and are aggressively prosecuting our claim for damages for product sold...

  • Page 24
    ... Common Stock (which number is subject to adjustment in the event of stock splits, reverse stock splits, recapitalization or certain corporate reorganizations) for issuance to non-employee directors of Plantronics. The Directors' Option Plan provides that each non-employee director shall be granted...

  • Page 25
    ... and one times the individual Vice Presidents' base salary. To encourage participation, we will sell our 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% of the...

  • Page 26
    ...of amplified telephones and other solutions to address the needs of individuals with hearing impairment and other special needs. Ameriphone was combined with Plantronics' Walker product group, a leading supplier of amplified telephones, specialty handsets and communication test equipment, to serve...

  • Page 27
    ... of fiscal year 2002, and during fiscal 2003 we entered into foreign currency forward-exchange contracts, which typically mature in one month, to hedge the exposure to foreign currency fluctuations of expected foreign currency-denominated receivables, payables and cash balances. We record on the...

  • Page 28
    ...annual report and is responsible for its accuracy and consistency with the consolidated financial statements. We maintain an internal control structure that consists, in part... accounting principles used ...2003 Ken Kannappan President and Chief Executive Officer Barbara Scherer Senior Vice President...

  • Page 29
    ... Officer, Plantronics, Inc. Ken Kannappan President and Chief Executive Officer Michael Hartberger Acting President, Walker/Ameriphone Don Houston Senior Vice President, Sales Jean-Claude Malraison Managing Director, Europe, Middle East & Africa Craig May Senior Vice President, Marketing, Product...

  • Page 30
    ... York Stock Exchange, under the symbol "PLT," since Plantronics' initial public offering on January 19, 1994. The initial offering price, on a split adjusted basis, was $2.08 per share. The following table sets forth the quarterly high and low sales prices for the Common Stock for our 2002 and 2003...

  • Page 31
    ... r eet No r t h M el b o u r n e Vi ct o r i a 3051, A u st r al i a T (61-3) 9321-0144 F (61-3) 9321-0162 B RA Z I L #103, Su sh an t Pl aza Fi r st Fl o o r Su sh an t Lo k -I,Gu r g ao n 122002, Har yan a, In d i a T (91) 124 5013652 F (91) 124 5013651 I T A LY Av. São Gab r i el , 201 - #1602...

  • Page 32
    Plant ronics, Inc. 345 Encinal St reet Sant a Cruz, Calif ornia 95060 T (831) 426-5858 F (831) 426-6098 w w w.plant ronics.com