Plantronics 2008 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2008 Plantronics annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

80
In the second quarter of fiscal 2008, the Company transitioned the responsibility and management of the Altec Lansing branded PC
headsets from the AEG segment to the ACG segment, and as a result, effective July 1, 2007, the revenue and resulting gross profit
from all PC headsets is now included in the ACG reporting segment within the Gaming and Computer Audio category. Because AEG
has not historically tracked costs and expenses by product line below material cost, prior period segment financial data has not been
restated as it is impracticable to determine product line information down to the gross margin or operating income level for periods
prior to the second quarter of fiscal 2008. Net revenues and gross profit for ACG and AEG for the year ended March 31, 2008 under
the old basis of segment reporting would have been:
Fiscal Year Ended
(in thousands) March 31, 2008
Net revenues
Audio Communications Group $ 742,155
Audio Entertainment Group 114,131
Consolidated net revenues $ 856,286
Gross profit
Audio Communications Group $ 341,999
Audio Entertainment Group 7,106
Consolidated gross profit $ 349,105
Audio Communications Group
ACG designs, manufactures, markets and sells headsets for business and consumer applications, and other specialty products for the
hearing impaired. With respect to headsets, it makes products for use in offices and contact centers, with mobile and cordless phones,
and with computers and gaming consoles. Major product categories include “Office and Contact Center”, which includes corded and
cordless communication headsets, audio processors and telephone systems; “Mobile”, which includes Bluetooth and corded products
for mobile phone applications; “Gaming and Computer Audio”, which includes PC and gaming headsets; and “Other”, which includes
specialty products such as Clarity products marketed for hearing impaired individuals. The following table presents net revenues by
product group within ACG:
(in thousands) 2006 2007 2008
Net revenues from unaffiliated customers:
Office and contact center $ 446,524 $ 475,323 $ 519,958
Mobile 119,333 146,859 171,880
Gaming and computer audio 35,656 30,162 33,612
Other specialty products 28,212 24,170 22,485
Total segment net revenues $ 629,725 $ 676,514 $ 747,935
Fiscal Year Ended March 31,
Audio Entertainment Group
AEG is engaged in the design, manufacture, sales and marketing of audio solutions and related technologies. Major product
categories include “Docking Audio”, which includes all speakers, whether AC or battery-powered, that work with portable digital
players such as iPod and other MP3 players and “PC Audio”, which includes self-powered speaker systems used for computers and
other multi-media application systems. “Other” includes headphones and home audio systems. Currently, all the revenues in AEG are
derived from sales of Altec Lansing products. The following table presents net revenues by product group within AEG: