Plantronics 2007 Annual Report Download - page 2

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Dear fellow shareholders,
During fi scal 2007, Plantronics made good progress in preparing for vibrant market
opportunities and we believe that we are in a better strategic position entering fi scal 2008.
New product portfolios are planned over the next year to strengthen our positions in all our
core markets, in contact center, wireless offi ce, corded offi ce, mobile communications and
mobile entertainment. It is now clearer than ever that the strategic rationale behind our
decision to purchase Altec Lansing is being validated with major convergence opportunities,
such as music cell phones. However, we very clearly suffered in our fi nancial results due to
our execution failures at Altec Lansing.
At the core of all our products, whether under the Plantronics, Altec Lansing, or Clarity brand
names, you will fi nd great sound, style, and simplicity. Our expertise in these areas allows
us to offer solutions that really make a difference to our customers. In communications, this
means you can really hear and be understood better in a conversation using a Plantronics or
Clarity product. Our design teams are creating products that refl ect not just the lifestyle and
appearance that people want, but an industrial design that is intuitive and easy to use.
Our major goals over the next two years are to:
• Increase adoption of wireless headsets in the offi ce through continued investment in
new products and marketing campaigns.
• Upgrade our existing customers with compelling product enhancements.
• Grow market share in Bluetooth® while continuing to improve profi tability.
• Improve the product portfolio and turn around the profi tability in our Altec Lansing division.
• Improve Audio Communications Group profi tability, in part by reducing transformation
costs and increasing asset utilization.
We believe these goals are all achievable and that the variable cash compensation in our
organization will be broadly dependent upon these successes.
On behalf of everyone at Plantronics, I want to thank you for your continued support.
Ken Kannappan
President and Chief Executive Offi cer