Plantronics 2007 Annual Report Download - page 42

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38 P l a n t r o n i c s
Throughout fiscal 2007, we remained focused on our overall long-term strategy for ACG, which is to
increase headset adoption in the enterprise markets through the creation of new products that are
appealing in functionality and design and combining these products with marketing programs to increase
awareness and interest. Through the acquisition of Altec Lansing and the establishment of AEG, we
moved closer to obtaining our long-term goal of positioning ourselves to produce products that will meet
consumer needs in an increasing convergence trend of communications and entertainment. The potential
for future growth will depend on our efforts to expand customer awareness and our ability to successfully
launch new products.
Looking forward into fiscal 2008, we are focused on the following key corporate goals to maximize long-
term shareholder value:
• Increase the adoption of our products in the office markets. Growing the office markets, through
the introduction of compelling, easy to use, wireless products and demand generation campaigns
will continue to be our top priority.
• Continue to reduce manufacturing costs, particularly for our Bluetooth products. We will continue
to implement our supply chain optimization and re-engineering initiatives that are designed to
increase inventory turns, improve forecast accuracy and reduce excess and obsolete inventory. We
will also continue our focus on reducing transformation costs by increasing the utilization of our
China plant, improving direct labor productivity and reducing logistics costs. We will continue
to increase the use of common platforms from which we can produce multiple generations of
products.
• Focus on turnaround plan for Altec Lansing. Development of the next generation products with
lower cost points and higher margins are a key priority for the next fiscal year. We also plan to
take advantage of the industrial design capabilities that exist within the ACG segment to make
these next generation products more appealing to buyers.
In fiscal 2008, our goal is to grow revenues and profits. We believe revenue growth will be achieved by
increased sales of wireless products, both for the office and for use with cell phones, and by an improved
product portfolio in AEG. We expect corded communication headset sales to be flat to down for most
markets.
We intend for the following discussion of our financial condition and results of operations to provide
information that will assist in understanding our financial statements. We acquired Altec Lansing on
August 18, 2005 at which time we created our AEG segment. Accordingly, the financial results for AEG
for fiscal 2006 include only the results of operations for the seven and one-half months from the acquisition
date of August 18, 2005 through March 31, 2006.