Plantronics 2002 Annual Report Download - page 46

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E xistence of Renewal Options. Certain operating leases provide for renewal options for
periods from one to three years. In the 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 acquired by Plantronics’ competitor, GN Netcom. T he lawsuit makes
various claims associated with the termination of the distribution relationship between
Plantronics and Hello Direct, including that Hello Direct has suffered approximately
$11 million in damages as a result of the termination. We believe Hello Direct’s claims
are without merit and we have filed a counter-claim against them.
Although we cannot presently determine the outcome of these claims and other such
claims arising in the normal course of business, we believe the ultimate resolution of
these claims is not likely to have a material adverse effect on our financial position,
results of operations or cash flows. If not successful in defending our claims h o w e v e r, the
resulting outcome could have a material adverse impact on our business, future
operating results or cash flows.
9 . S E G M E N T S A N D E N T E R P R I S E -W I D E D I S C L O S U R E S
S e g m e n t s . We are engaged in the design, manufacture, marketing and sales of
t e l e c o m m u n i c a t i o n s equipment including headsets, telephone headset systems, and
other specialty telecommunications products. Plantronics considers itself to operate in
one business segment.
Products and Services. We organize our operations to focus on three principal markets:
call center and office products, mobile and computer products, and other specialty
products. T he following table presents net revenue by market:
Fiscal Year End ed M arch 3 1 ,
(in th o u sands) 2000 2001 2002
Net revenues from unaffiliated customers:
Call center and off i c e $2 7 5 , 7 9 6 $ 3 1 3 , 7 0 7 $ 237,505
Mobile and computer 2 0 , 2 4 7 6 2 , 6 8 8 61,387
Other specialty products 1 3 , 1 0 0 1 4 , 3 5 3 12,289
$3 0 9 , 1 4 3 $ 3 9 0 , 7 4 8 $ 311,181
Major Customers. No customer accounted for 10% or more of total revenue for fiscal
year 2000, 2001 or 2002.
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