Plantronics 2005 Annual Report Download - page 50

June 30, Sept. 30, Dec. 31, Mar. 31,
Quarter ended in thousands, except income per share 2004 2004 2004 2005
QUARTERLY DATA (UNAUDITED):
Net revenues $131,370 $130,220 $150,583 $147,822
Gross profit 69,667 69,501 75,433 73,857
Net income $ 22,347 $ 24,675 $ 24,442 $ 26,056*
Basic net income per common share $ 0.47 $ 0.51 $ 0.50 $ 0.53
Diluted net income per common share $ 0.44 $ 0.49 $ 0.48 $ 0.51
Cash dividends declared per common share $ — $ 0.05 $ 0.05 $ 0.05
* Subsequent to our earnings press release dated April 26, 2005, we have recorded approximately
$2.7 million of additional income tax expense. As a result, we have adjusted our consolidated financial
statements as previously reported within our April 26, 2005 press release. See note 6 of the fiscal 2005
consolidated financial statements for more information.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations
CERTAIN FORWARD-LOOKING INFORMATION
This Annual Report on Form 10-K contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 (the ‘‘Securities Act’’) and Section 21E of the Securities
Exchange Act of 1934 (the ‘‘Exchange Act’’). In addition, we may from time to time make oral forward-
looking statements. These statements may generally be identified by the use of such words as ‘‘expect,’’
‘‘anticipate,’’ ‘‘believe,’’ ‘‘intend,’’ ‘‘plan,’’ ‘‘will,’’ or ‘‘shall,’’ and include, but are not necessarily limited to,
all of the statements marked in this Annual Report on Form 10-K with an asterisk (‘‘*’’). Such forward-
looking statements are based on current expectations and entail various risks and uncertainties. Our actual
results could differ materially from those anticipated in such forward-looking statements as a result of a
number of factors, including but not limited to the following: the office, contact center, mobile,
computer, residential, and other specialty product markets not developing as we expect, and a failure to
respond adequately to either changes in technology or customer preferences. For a discussion of such
factors, this Annual Report on Form 10-K should be read in conjunction with the ‘‘Risk Factors
Affecting Future Operating Results,’’ included herein. 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.
OVERVIEW
We are a leading worldwide designer, manufacturer and marketer of lightweight communications
headsets, telephone headset systems and accessories for the business and consumer markets. In addition,
we manufacture and market specialty telecommunication products for the hearing-impaired and other
related products for people with special communications needs.
We sell our broad range of communications products into more than 70 countries through a worldwide
network of distributors, original equipment manufacturers (‘‘OEM’s’’), wireless carriers, retailers and
telephony service providers. We have well-developed distribution channels in North America and
Europe, where headset use is fairly widespread. Our distribution channels in other regions of the world
are less mature and primarily serve the contact center markets in those regions.
Our revenues grew 34.3% during the fiscal year ended March 31, 2005, with growth in all of our major
product groups. Compared with fiscal 2004, total revenues increased from $417.0 million to $560.0 mil-
lion for fiscal 2005. This growth was primarily attributable to revenues from new products within the
office, contact center, mobile and entertainment markets.
22 ⯗Plantronics