Plantronics 2005 Annual Report Download - page 30

assisted listening devices and other communications devices for the hearing-impaired markets. Clarity’s
patented technology, Clarity Power
TM
provides customized solutions for customers who otherwise may
not have a way to communicate effectively.
We provide access free of charge through a link on our web site to our Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as well as amendments to those
reports, as soon as reasonably practicable after the reports are electronically filed with, or furnished to, the
Securities and Exchange Commission.
Our principal executive offices are located at 345 Encinal Street, Santa Cruz, CA, 95060. Our telephone
number is [phone]. Our internet address is www.plantronics.com. Our Investor Relations website
is also accessible through www.plantronics.com.
INDUSTRY BACKGROUND
General Background
Headsets 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 and more;
)MULTI-TASKING BENEFITS that allow people to use a computer, a PDA or other devices,
take notes and organize files while talking hands-free;
)WIRELESS FREEDOM allowing people to take and make calls as they move freely around
their home or office without cords or cables;
)CONTRIBUTING TO GREATER DRIVING SAFETY by enabling a person already using a
cell phone to have 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 associ-
ated with placing a telephone handset between the shoulder and neck;
)ENABLING EMERGING PERSONAL COMPUTER (‘‘PC’’) AND VoIP APPLICA-
TIONS, including speech recognition, Internet telephony and gaming; and
)PROVIDING GREATER PRIVACY than speakerphones, and with wireless products, the
ability to move from public to private space when required.
Demand for headsets continues to increase both in 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
contributed significantly to demand, a trend we expect to continue in fiscal 2006.* Wireless products
represent both an opportunity for high growth as well as a challenge because of the lower margins we
experience due to competitive pressures, particularly with Bluetooth mobile products.*
The proliferation of desktop computing makes communications headsets a product of choice in many
occupations because they permit the user to be more efficient in an ergonomically comfortable
environment. Growing awareness of driver safety and impending or already existing hands-free legislation
requiring mandatory hands-free devices for cell phone communications in cars has led to increased
headset adoption for cell phone users. The increased adoption of new technologies, such as Bluetooth and
VoIP described below, has also contributed to the increase in demand for telephone headsets:
)Bluetooth is a wireless technology using short-range radio links that can eliminate cables and
wires that were formerly required to connect computing and communications devices. It can be
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