Plantronics 2001 Annual Report Download

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Plantronics, Inc. 345 Encinal Street Santa Cruz, California 95060 www.plantronics.com

Table of contents

  • Page 1
    Plant ronics, Inc. 345 Encinal St reet Sant a Cruz, Calif ornia 95060 w w w.plant ronics.com

  • Page 2
    Financials Plant ronics 2001 Annual Report

  • Page 3
    ... Per Share Data) Operat ions 2000 $ 315,012 $ 64,517 $ 1.22 53,019 $ 170,030 -0- $ 78,306 $ 105,376 58.9% 29.6% 20.5% 66.2% 2001 $ 401,038 $ 73,550...25 $20 $15 $10 $5 '01 $0 ' 97 ' 98 ' 99 ' 00 '01 Ret urn on Sales (bef ore ext raordinary it em) 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% ' 97 ' 98 ' 99 '...

  • Page 4
    ... City, Tower A Singapore 238873 Telephone (65) 838-5239 Facsimile (65) 235-1447 Spain Interface Business Park Bincknoll Lane Wootton Bassett, Wiltshire SN4 8QQ England, United Kingdom Telephone (44-17) 93-848999 Facsimile (44-17) 93-848853 Walker Equipment Division Edificio Londres Complejo Europa...

  • Page 5
    ... disclosures in our Annual Report on Form 10-K. Annual Result s of Operat ions Net Sales. Net sales in fiscal 2001 increased 27.3% to $401.0 million compared to $315.0 million in fiscal 2000, which in turn...also grew due to an increase in demand for headsets used in Plantronics 2001 Annual Report 1

  • Page 6
    ... selling expenses increased due to incremental retail revenue. Marketing expenses increased substantially due to increased activities including advertising campaigns, new product launches, international marketing, and programs for our mobile and computer divisions. Plantronics 2001 Annual Report 2

  • Page 7
    ... fiscal year ended March 31, 2000, due mainly to $64.5 million in net income, an increase of $11.3 million in income taxes payable, and an income tax benefit of $15.1 million associated with the exercise of options, offset by a $14.9 million increase in inventory. Plantronics 2001 Annual Report 3

  • Page 8
    ... of manufacturing capacity, facilities expansions both in the U.S. and Europe, and investments in computer and telephone equipment. In the fiscal year ended March 31, 2001, we sold 99,925 shares of our treasury stock for approximately $2.8 million and repurchased 1,333,100 shares of our Common...

  • Page 9
    ...2000 2001 Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventory, net Deferred income taxes Other current assets Total current assets Property, plant and equipment...Retained Earnings Less: Treasury stock (common: 8,686 and ...Plantronics 2001 Annual Report 5

  • Page 10
    ...99 54,846 $ $ 2000 $315,012 129,513...2001 $401,038 180,946 220,092 26,999 91,079 118,078 102,014 107 (245) 102,152 28,602 73,550 - $ 73,550 $ $ 1.49 - 1.49 49,213 1.38 - 1.38 53,263 The accompanying notes are an integral part of these consolidated financial statements. Plantronics 2001 Annual Report...

  • Page 11
    ...rom operat ing act ivit ies 1999 54,204 2000 $ 64,517 2001 $ 73,550 Net income $ Adjustments to reconcile... of treasury stock Proceeds from sale of treasury stock Proceeds from exercise of stock options Other Cash...part of these consolidated financial statements. Plantronics 2001 Annual Report 7

  • Page 12
    ...168,279 - (2,206,779) 87,903 - 50,395,329 2,180,493 - (3,802,500) 123,291 - 48,896,613 1,516,000 - (1,333,100) 99,925 - - Amount $522 33 - - - - 555 21 - - - - 576 15 - - - - - The accompanying notes are an integral part of these consolidated financial statements. Plantronics 2001 Annual Report 8

  • Page 13
    ...891 281) Retained Earnings $ 15,355 - - - - 54,204 69,559 - - - - 64,517 134,076 - - - - 73,550 - Treasury Stock $ (25,018) - - (46,384) 531 - (70,871) - - (72,613) 744 - (142,740) - - (40,050) 604 - -...) 73,269 $148,188 $(1,172) $207,626 $(182,186) $173,047 Plantronics 2001 Annual Report 9

  • Page 14
    ... date of financial statements and the reported amounts of sales and expenses during the reporting period. Actual results could differ from...52 weeks, while fiscal year 2000 included 53 weeks. Results of operations for the fiscal year 2001 included 52 weeks. Fiscal ...Plantronics 2001 Annual Report 10

  • Page 15
    ...for the estimated cost of repair or replacement products under warranty at the time of sale. Advertising Costs. We expense all advertising costs as incurred. Advertising expense, which includes corporate and cooperative advertising, for the years ended March 31, 1999, 2000 and 2001 was $3.7 million...

  • Page 16
    ... in the United Kingdom, an international finance, customer service and logistics headquarters in the Netherlands, an international procurement office in Taiwan, and sales offices in Canada, Asia, Europe, Australia and South America. For fiscal 1999, 2000 and the first three quarters of 2001, the...

  • Page 17
    ... securities-employee stock options Weighted ...report certain information about operating segments in our annual financial statements. It also establishes standards for related disclosures about products and services, geographic areas and major customers (see note 9). Plantronics 2001 Annual Report...

  • Page 18
    ...25, "Accounting for Stock Issued to Employees"... years commencing after June 15, 2000. In June 2000, the FASB issued SFAS 138,...2001. Reclassifications. Certain reclassifications have been made to prior year balances in order to conform to the current year presentation. Plantronics 2001 Annual Report...

  • Page 19
    ... under the facility at March 31, 2001. The revolving credit facility includes certain covenants that materially limit our ability to incur debt and pay dividends, among other matters. We were in compliance with the terms of the covenants as of March 31, 2001. Plantronics 2001 Annual Report 15

  • Page 20
    .... Shares resulting from the split were distributed by the transfer agent on August 8, 2000. All share and pershare numbers contained herein for all periods presented reflect this stock split, unless otherwise noted. During fiscal 2000, the Board of Directors authorized Plantronics to repurchase an...

  • Page 21
    ...and other reserves Deferred state tax Other deferred tax assets Gross deferred tax assets Total net deferred tax liabilities (assets) $ 2000 $ 2,350 3,357 1,773 7,480 (6,182) (386) (539) (7,107) 373 2001 $ 2,413 3,357 874 6,644 (6,878) (567) (232) (7,677) $(1,033) Plantronics 2001 Annual Report 17

  • Page 22
    ...6% of pay contributed to the salary deferral plan. With this amendment, the annual cash profit sharing payment was eliminated and replaced by a 20% increase to our associates base pay. Total quarterly profit sharing contributions were $5.4 million for fiscal 2001. Plantronics 2001 Annual Report 18

  • Page 23
    ...normal course of business, operating leases are generally renewed or replaced by other leases. Claims and Litigation. We are presently engaged in a lawsuit filed in the Superior Court in Santa Clara County, California by Hello Direct (now GN Hello Direct), a former Plantronics distributor which was...

  • Page 24
    ... area (in thousands). Fiscal Year Ended March 31, Geographic Information. (in thousands) Net revenues from unaffiliated customers: United States International 1999 $198,910 87,351 $286,261 2000 $209,557 105,455 $315,012 2001 $275,998 125,040 $401,038 Plantronics 2001 Annual Report 20

  • Page 25
    ... period. In July 1999, the Stock Option Plan Committee was authorized to make option grants to employees who are not senior executives pursuant to guidelines approved by the Compensation Committee and subject to quarterly reporting to the Compensation Committee. Plantronics 2001 Annual Report 21

  • Page 26
    ... at March 31, 2000 Options Authorized Options Granted Options Exercised Options Cancelled Balance at March 31, 2001 Exercisable at March 31, 2001 345,001 3,900,000 (1,998,000) 553,335 2,800,336 (2,634,375) 107,025 272,986 2,670,000 (1,720,027) 390,984 1,613,943 Plantronics 2001 Annual Report 22

  • Page 27
    ...which a price has fluctuated over an historical period. The higher the volatility, the more the returns on the stock can be expected to vary. The risk free interest rate is the rate on a U.S. Treasury bill or bond that approximates the expected life of the option. Plantronics 2001 Annual Report 23

  • Page 28
    ...forma Net income per share: As reported Pro forma 1999 $54,204 $51,771 $ $ 0.99 0.94 2000 $64,517 $56,879 $ $ 1.22 1.07 2001 $73,550 $61,427 $ $ 1.38 1.15 Employee Stock Purchase Plan. On April 23, 1996, the Board of Directors of Plantronics approved the 1996 Employee Stock Purchase Plan (the "ESPP...

  • Page 29
    ... purchases, Deferred Compensation Plan contributions, outright purchase of stock or exercising and holding vested stock options. The discounted price is not applicable to exercising and holding of vested stock options. Senior Execut ive St ock Ow nership Plan. Plantronics 2001 Annual Report 25

  • Page 30
    ... in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements include amounts that are based on management's best estimates and judgments. Management also prepared the other information in this annual report and is responsible for...

  • Page 31
    ...report appears below. Ken Kannappan President and Chief Executive Officer Barbara Scherer Senior Vice President - Finance & Administration and Chief Financial Officer Report of Independent Accountants To t he Board of Direct...of Plantronics, Inc. and its subsidiaries at March 31, 2000 and 2001 and ...

  • Page 32
    ...Fiscal Year Ended March 31, 1997 1998 1999 2000 2001 Net sales Income before extraordinary item Extraordinary item, net of... Sheet Dat a 1997 1998 1999 2000 2001 Total assets Long-term debt $127,241 65,050 $165,475 65,050 $142,868 - $170,030 - $233,272 - Plantronics 2001 Annual Report 28

  • Page 33
    ... ed) Jun. 30 2000 Sep. 30 2000 Dec. 31 2000 Mar. 31 2001 Net sales Gross profit Net income Diluted net income per common share $100,352 57,257 $ 20,104 $ 0.38 $103,940 58,061 $ 20,740 $ 0.39 $106,718 59,441 $ 21,308 $ 0.40 $90,028 45,333 $11,398 $ 0.22 Plantronics 2001 Annual Report 29

  • Page 34
    ... Vice President, Legal, General Counsel and Secretary Don Houst on Former Chairman and Chief Executive Officer, Banc One Arizona Ken Kannappan Senior Vice President, Sales St eve Krug President, Walker Equipment Division Jean-Claude M alraison President and Chief Executive Officer, Plantronics...

  • Page 35
    ... Corporate Headquarters M arket f or Regist rant 's Common Equit y and Relat ed St ockholder M at t ers 345 Encinal Street Santa Cruz, California 95060 USA Telephone (831) 426-5858 Facsimile (831) 426-6098 www.plantronics.com Registrar and Transfer Agent Fleet National Bank c/o EquiServe P.O. Box...

  • Page 36
    ... 7146 50342 Hürth (Cologne), Germany Telephone (49) 2233-399-0 Facsimile (49) 2233-399-399 Avenida Produccion, #12 Parque Industrial Internacional Tijuana, Mesa de Otay Tijuana, Baja California 22390 Mexico Telephone (52-66) 822-798 Facsimile (52-66) 822-796 Plantronics 2001 Annual Report 32