Plantronics 2006 Annual Report Download - page 57

part ii
represents a significant opportunity for unit volume increases; however, this market is highly competitive
and fast changing.
In fiscal 2006, we introduced an entry level portable speaker for use with the iPod, the iM11, and a
powered USB. two-piece speaker system, the XT2.
Domestic and International
Domestic revenues for fiscal 2006 were approximately 70% of total net revenues. The international
revenues of the Audio Entertainment Group are primarily derived from the European markets.
Revenues may vary due to seasonality, timing of the introduction of new products, discounts and other
incentives, and channel mix. Other trends which will also impact our Audio Entertainment Group
revenues include growth of the MP3 player market, and our ability to successfully attach to new
generations of MP3 players and to develop products which keep up with the rapidly-developing portable
and personal audio markets.
Consolidated
Fiscal Year Ended Fiscal Year Ended
March 31, March 31, Increase March 31, March 31, Increase
($ in thousands) 2004 2005 (Decrease) 2005 2006 (Decrease)
Consolidated By Geographic Region
United States $277,217 $375,530 $ 98,313 35.5% $375,530 $483,513 $107,983 28.8%
Europe, Middle East and Africa 102,926 135,030 32,104 31.2% 135,030 178,315 43,285 32.1%
Asia Pacific and Latin America 23,188 33,152 9,964 43.0% 33,152 61,880 28,728 86.7%
Canada and Other International 13,634 16,283 2,649 19.4% 16,283 26,686 10,403 63.9%
Total International 139,748 184,465 44,717 32.0% 184,465 266,881 82,416 44.7%
Total consolidated net revenues $416,965 $559,995 $143,030 34.3% $559,995 $750,394 $190,399 34.0%
In comparison to fiscal 2005, the increase in the consolidated net revenues in fiscal 2006 is primarily
attributable to the additional net revenues of $120.7 million resulting from the acquisition of Altec
Lansing and growth in the Office and Contact Center products, especially in our wireless products. This
increase has been partially offset by a decrease in our mobile headset net revenues, driven primarily by
lower corded revenues and lower net revenues from our gaming products. The wireless market, coupled
with a trend toward the convergence of communications and entertainment, continues to grow, with net
revenues up 75.3% compared to a year ago. In addition, our total net revenues from wireless products for
fiscal 2006 account for approximately 40% of our total Audio Communications Group net revenues
compared to 26% in fiscal 2005.
Consolidated net revenues from domestic sales for fiscal 2006, as a percentage of total net revenues,
decreased from approximately 67% to 64%, compared to a year ago. Net revenues from international sales
for fiscal 2006, as a percentage of total net revenue, increased from 33% to 36%, respectively, compared to
a year ago.
In comparison to fiscal 2004, the increase in net sales for fiscal 2005 was geographically broad based and
across all major product lines and sales channels. The increase was driven primarily by continued sales of
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