Plantronics 2010 Annual Report Download - page 10

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We provide access free of charge through a link on our website (www.plantronics.com) to the following filings as soon as reasonably
practicable after they are electronically filed with or furnished to the Securities and Exchange Commission: our Annual Reports on
Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports filed or furnished
pursuant to Section 13 (a) or 15(d) of the Securities Exchange Act of 1934.
Our principal executive offices are located at 345 Encinal Street, Santa Cruz, California, 95060. Our telephone number is (831) 426-
5858. Our internet address is www.plantronics.com. Our Investor Relations website, which contains, among other things, documents
regarding our corporate governance and our Board of Directors committee charters, is also accessible through www.plantronics.com.
BUSINESS SEGMENTS AND MARKET INFORMATION
Prior to December 1, 2009, we operated under two reportable segments, the Audio Communications Group (“ACG”) and the Audio
Entertainment Group (“AEG”). As previously noted, we completed the sale of Altec Lansing, which comprised our AEG segment,
effective December 1, 2009, and, therefore, it is no longer included in continuing operations, and we operate as one business segment.
Accordingly, we have classified the AEG operating results, including the loss on sale of AEG, as discontinued operations in the
Consolidated statement of operations for all periods presented.
General Industry Background
Plantronics operates predominantly in the consumer electronics market and focuses on the design, manufacture, and distribution of
headsets for business and consumer applications, and other specialty products for the hearing impaired. We target enhanced
communications for offices and contact centers, mobile and cordless phones, and computers and gaming consoles. We offer our
products primarily under two brands – Plantronics and Clarity.
On a long-term basis, the demand for headsets has grown in both our traditional markets, such as the enterprise markets, as well as in
the consumer market. In each of these markets, the trend towards wireless products has been a significant factor. Our business is
sensitive to economic cycles, and we experienced a decrease in demand in fiscal 2009 and 2010 due to the global economic recession.
We experienced some recovery in our revenues during the second half of fiscal 2010 compared to the same period in fiscal 2009;
however, there can be no assurance that this recovery will continue.
Our headset products enhance communications by providing the following benefits:
· better sound quality that provides clearer conversations on both ends of a call through a variety of features and technologies,
including noise-canceling microphones, Digital Signal Processing (“DSP”), and more;
· wireless freedom allowing people to take and make calls as they move freely around their office or home without cords or
cables;
· multi-tasking benefits that allow people to use a computer, use mobile devices including smartphones or other devices, take
notes and organize files while talking hands free;
· contributing to greater driving safety and enabling a motor vehicle operator to comply with hands-free legislation by having
both hands free to drive while talking on a cell phone;
· voice command and control that let people take advantage of voice dialing and/or other voice-based features to make
communications and the human/electronic interface more natural and convenient;
· providing ergonomic relief from repetitive stress injuries and discomfort associated with placing a telephone handset between
the shoulder and neck;
· providing greater comfort and convenience than a telephone alone on longer duration calls;
· enabling emerging UC integration and PC and VoIP applications, including speech recognition, Internet telephony and
gaming;
· providing a convenient means for connecting between various applications and voice networks, whether that be between land
line and mobile phones, or between PC-based communications and other networks; and