Plantronics 2008 Annual Report Download - page 40

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34
Geographical Information
(in thousands)
United States $ 483,513 $ 490,551 $ 7,038 1.5% $ 490,551 $ 521,148 $ 30,597 6.2%
Europe, Middle East and Africa 178,315 195,090 16,775 9.4% 195,090 214,621 19,531 10.0%
Asia Pacific 47,921 59,927 12,006 25.1% 59,927 62,742 2,815 4.7%
Americas, excluding United States 40,645 54,586 13,941 34.3% 54,586 57,775 3,189 5.8%
Total International 266,881 309,603 42,722 16.0% 309,603 335,138 25,535 8.2%
Total consolidated net revenues $ 750,394 $ 800,154 $ 49,760 6.6% $ 800,154 $ 856,286 $ 56,132 7.0%
Fiscal Year Ended Fiscal Year Ended
March 31, March 31, Increase March 31, March 31, Increase
2006 2007 (Decrease) 2007 2008 (Decrease)
In comparison to fiscal 2007, fiscal 2008 consolidated international net revenues, as a percentage of total net revenues, remained
consistent at 39%. International net revenues for ACG, increased from 37% to 38% primarily due to the strength of our Europe,
Middle East and Africa (“EMEA”) business in ACG; however, this increase was offset in part by decreased international net
revenue for AEG.
In comparison to fiscal 2006, fiscal 2007 consolidated international net revenues, as a percentage of total net revenues, increased
from 36% to 39%, respectively. International net revenues for ACG increased from 35% to 37% primarily due to growth in our
EMEA business and in our Asia Pacific and Americas regions mostly due to strong demand for OCC wireless office systems and
Bluetooth mobile products. International net revenues for AEG increased from 35% to 47% which reflected the intense price
competition in the docking audio products market in the U.S.
Cost of Revenues and Gross Profit
Cost of revenues consists primarily of direct manufacturing and contract manufacturer costs, including material and direct labor,
our operations management team and indirect labor such as supervisors and warehouse workers, freight expense, warranty
expense, reserves for excess and obsolete inventory, depreciation, royalties, and an allocation of overhead expenses, including
facilities and IT costs.
Consolidated
(in thousands)
Net revenues $ 750,394 $ 800,154 $ 49,760 6.6% $ 800,154 $ 856,286 $ 56,132 7.0%
Cost of revenues 424,140 491,339 67,199 15.8% 491,339 507,181 15,842 3.2%
Consolidated gross profit $ 326,254 $ 308,815 $ (17,439) (5.3)% $ 308,815 $ 349,105 $ 40,290 13.0%
Consolidated gross profit % 43.5% 38.6% (4.9) ppt. 38.6% 40.8% 2.2 ppt.
Fiscal Year Ended Fiscal Year Ended
March 31, March 31, Increase March 31, March 31, Increase
2006 2007 (Decrease) 2007 2008 (Decrease)
Audio Communications Group
Net revenues $ 629,725 $ 676,514 $ 46,789 7.4% $ 676,514 $ 747,935 $ 71,421 10.6%
Cost of revenues 340,437 381,034 40,597 11.9% 381,034 403,863 22,829 6.0%
Segment gross profit $ 289,288 $ 295,480 $ 6,192 2.1% $ 295,480 $ 344,072 $ 48,592 16.4%
Segment gross profit % 45.9% 43.7% (2.2) ppt. 43.7% 46.0% 2.3 ppt.
Audio Entertainment Group
Net revenues $ 120,669 $ 123,640 $ 2,971 2.5% $ 123,640 $ 108,351 $ (15,289) (12.4)%
Cost of revenues 83,703 110,305 26,602 31.8% 110,305 103,318 (6,987) (6.3)%
Segment gross profit $ 36,966 $ 13,335 $ (23,631) (63.9)% $ 13,335 $ 5,033 $ (8,302) (62.3)%
Segment gross profit % 30.6% 10.8% (19.8) ppt. 10.8% 4.6% (6.2) ppt.
The increase in consolidated gross profit in both fiscal 2007 and 2008 is attributable to ACG, which accounted for approximately