Plantronics 2011 Annual Report Download - page 12

• UC is the integration of voice, data and video-based communications systems enhanced with software applications and
IP networks. It may include the integration of devices and media associated with a variety of business workflows and
applications, including e-mail, instant messaging, presence, audio, video and web conferencing and unified
messaging. UC seeks to provide seamless connectivity and user experience for enterprise workers regardless of their
location and environment, improving the overall business efficiency and providing more effective collaboration among
an increasingly distributed workforce.
• Bluetooth wireless technology is a short-range communications technology intended to replace the cables connecting
portable and/or fixed devices while maintaining high levels of security. The key features of Bluetooth technology are
robustness, low power, and low cost. The Bluetooth specification defines a uniform structure for a wide range of devices
to connect and communicate with each other. Bluetooth technology has achieved global acceptance such that any
Bluetooth enabled device, almost anywhere in the world, can connect to other Bluetooth enabled devices in proximity.
• VoIP is a technology that allows a person to communicate using a broadband Internet connection instead of a regular (or
analog) telephone line. VoIP converts the voice signal into a digital signal that travels over the Internet or other packet-
switched networks and then converts it back at the other end so that the caller can speak to anyone with another VoIP
connection or a regular (or analog) phone line.
• DSP is a technology that delivers acoustic protection and optimal sound quality through noise reduction, echo cancellation,
and other algorithms to improve both transmit and receive quality.
• DECT is a technology that optimizes audio quality, lowers interference with other wireless devices, and is digitally
encrypted for heightened call security.
Markets
Our products are designed to meet the needs of specific markets and applications such as offices (ranging from enterprise to home
offices), contact centers, mobile devices (such as mobile phones and smartphones), computer and gaming, residential, and other
specialty applications. These markets and applications are increasingly overlapping as work styles and lifestyles change, and
people use devices for multiple applications such as communication, music, and video entertainment. We serve these markets
through our product categories listed below.
Office and Contact Center
The office market comprises our largest revenue stream and we offer a broad range of communications headsets, including high-
end, ergonomically designed headsets, audio processors, and telephone systems. Our end-users consist of enterprise employees
as well as small office, home office, and remote workers. Growth in this market comes from three main factors:
• the adoption of wireless solutions and the freedom they allow;
• increasing deployment of UC systems; and
• growing awareness of the benefits of using headsets.
We believe the office market represents our largest revenue and profit growth opportunity. The contact center market is our most
mature market, and we expect this market to grow slowly over the long-term. We expect that contact centers will increasingly
adopt UC to help improve productivity and reduce costs. We develop audio endpoints tailored specifically to UC, and as UC
adoption continues to increase, we will continue to lead in new product performance by creating solutions that combine hardware
and software for improved customer solutions.
Mobile
Use of headsets with mobile phones has grown worldwide. Mobile represents a large unit volume market and is our second largest
revenue stream. Use of headsets with mobile phones has grown worldwide, particularly due to continued Bluetooth technology
adoption and hands-free legislation regarding the use of mobile phones while driving. As headsets become more widely used,
users are becoming more fashion conscious and style has become as important as functionality and technology. Our mobile
headsets merge technological innovations with style. The mobile headset market is beginning to slow in the United States ("U.S.").
We believe this market is likely to grow more slowly in the future than it has in the past as it continues to mature.
Entertainment and Computer Audio
Entertainment and computer audio headsets, whether they are used for interactive on-line gaming or switching between music
and phone calls for multi-functional devices, represent an emerging market opportunity for us.
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