Plantronics 2001 Annual Report Download - page 5

Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Certain Forward-Looking Information
This Annual Report contains forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These
statements include, without limitation, the statements that (i) we do not believe a rebound
in the economy will occur soon and we believe that our revenues and earnings in the first
fiscal quarter of 2002 could be weaker than our fourth fiscal quarter, as well as we believe it
is unlikely that secular factors will outweigh cyclical factors in our upcoming fiscal year and
we thus believe it is likely that revenue for fiscal 2002 may be lower than that achieved in
fiscal 2001, discussed in the final paragraph of the Net Sales section under Annual Results
of Operations; and (ii) we expect interest expense in fiscal 2002 to be minimal discussed
in the third sentence of the section titled “Interest Expense” under Annual Results of
Operations; and (iii) our current cash balance and cash from operations and available bor-
rowings will be sufficient to fund operations for the next twelve months discussed in the final
paragraph of the section titled “Liquidity” under Financial Condition.
In addition, we may from time to time make oral forward-looking statements. These forward-
looking statements are based on current expectations and entail various risks and uncer-
tainties. Our actual results could differ materially from those anticipated in these
forward-looking statements as a result of a number of factors, including those under “Risk
Factors Affecting Future Operating Results” set forth in our most recent Annual Report on
Form 10-K as filed with the Securities Exchange Commission. The following discussions titled
“Annual Results of Operations” and “Financial Condition” should be read in conjunction with
those risk factors, the consolidated financial statements and related notes included elsewhere
herein, and the discussion and additional disclosures in our Annual Report on Form 10-K.
Annual Results of Operations
Net Sales. Net sales in fiscal 2001 increased 27.3% to $401.0 million compared to $315.0 mil-
lion in fiscal 2000, which in turn increased 10.0% compared to fiscal 1999 net sales of $286.3
million. Our fiscal year ended March 31, 2001 contained 52 weeks vs. 53 weeks for fiscal year
2000, and 52 weeks for fiscal 1999. International sales accounted for approximately 31.2% of
total net sales in fiscal 2001, from 33.5% of total net sales in fiscal 2000 and 30.5% in fiscal 1999.
Domestic sales increased 31.7% to $276.0 million in fiscal 2001, compared to an increase
of 5.4% to $209.6 million in fiscal 2000 compared to the prior fiscal year. U.S. retail sales grew
strongly, reflecting both a broadening retail distribution with several major new consumer
electronics accounts added during the year and an increase in demand for headsets for office
applications. Retail revenue also grew due to an increase in demand for headsets used in
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