Plantronics 2010 Annual Report Download - page 38

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30
Throughout fiscal 2010, we remained focused on our long-term strategy to capitalize on the opportunities in the OCC and Mobile
markets and be well-positioned for UC. While staying focused on our long-term strategy, we also broadly reduced spending in light
of the global recession to react to the impact on our market and near-term revenue potential over the course of the year. Our revenues
recently rebounded from the low we experienced in the March 2009 quarter and, as a result, some new initiatives were approved in
light of our improved financial position.
Looking forward into fiscal 2011, we are focused on the following key corporate goals to maximize long-term shareholder value:
x Invest for UC leadership and a high return on investment. We believe that UC is a key long-term driver of revenue
and profit growth. We will focus on innovative product development, including the use of software as part of our
products, growing our sales team, and establishing key strategic partnerships to market UC products. Our goal is to be
the world leader in audio solutions for the UC market.
x Maintain profitability in consumer Bluetooth products. In fiscal 2010, we were able to improve Bluetooth profitability
and to gain market share. We also significantly reduced assets employed in the Bluetooth business through the
manufacturing outsourcing model and inventory management. Our goal in fiscal 2011 is to maintain profitability despite
the strong competitive environment and optimize assets deployed as a result of opportunities within the Bluetooth
market.
x Earn a return on invested capital in excess of the cost of capital. As a result of our strategic initiatives we executed in
fiscal 2010, we significantly improved asset efficiency. For example, our capital expenditures decreased by over 70%
from fiscal 2009, inventories were reduced by approximately $49.0 million and inventory turns increased to 4.2 as of
March 31, 2010 from 3.1 as of March 31, 2009. In the second half of fiscal 2010, we experienced growth in our
revenues over the same periods in the prior year and, in fiscal 2011, we will continue to focus on growing our profits on
a leaner asset base.
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 and therefore, this discussion should be read in conjunction with the financial statements and
accompanying notes.