Plantronics 2010 Annual Report Download - page 45

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37
Operating Income
In fiscal 2010, we had an operating income of $97.6 million compared to $61.5 million in fiscal 2009 due to higher margins on lower
revenues as a result of our fiscal 2009 restructuring actions in which we reduced our worldwide workforce and outsourced our
Bluetooth manufacturing in China along with lower costs as a result of cost savings programs.
fiscal 2009, we had operating income of $61.5 million as compared to operating income of $115.2 million in fiscal 2008 due to
ing and other related charges during fiscal 2009 offset in part by a reduction in normal
programs.
ry based on product mix shifts, product life cycles, and seasonality. We believe our operating income will
nI
lower net revenues and increased restructur
erating expenses as a result of cost savingsop
Operating margins may va
increase in 2011 due to continued improvement in the global economy along with further cost savings from the Q4 Fiscal 2009
Restructuring Action and cost containment measures.
Interest and Other Income (Expense), Net
In comparison to fiscal 2009, interest and other income (expense), net in fiscal 2010 increased primarily due to foreign exchange gains
in fiscal 2010 as compared to foreign currency losses in the prior year as a result of the strength of the U.S. Dollar, a stimulus grant
received from the Mexican government and reimbursement from Altec Lansing for routine expenses incurred on their behalf under the
Transition Service Agreement entered into in conjunction with the sale of the AEG business in December 2009. These increases were
offset in part by lower interest income as a result of declining interest rates despite higher average cash and investment balances in
fiscal 2010.
We had net interest and other expense in fiscal 2009 as compared to net interest and other income in fiscal 2008 due to higher foreign
currency losses and lower interest income as a result of lower interest rates despite higher cash, cash equivalents, and short-term
investments.
Income Tax Expense
Fiscal Year Ended Fiscal Year Ended
(in thousands) March 31,
2008 March 31,
2009 Increase
(Decrease) March 31,
2009 March 31,
2010 Increase
(Decrease)
Operating income $ 115,166 $ 61,461 $ (53,705) (46.6)% $ 61,461 $ 97,635 $ 36,174 58.9%
% of total consolidated net revenues 15.4% 9.1% (6.3) ppt. 9.1% 15.9% 6.8 ppt.
Fiscal Year Ended Fiscal Year Ended
(in thousands) March 31,
2008 March 31,
2009 Increase
(Decrease) March 31,
2009 March 31,
2010 Increase
(Decrease)
Interest and other income (expense), net $ 5,854 $ (3,544) $ (9,398) (160.5)% $ (3,544) $ 3,105 $ 6,649 (187.6)%
% of total net revenues 0.8% (0.5)% (1.3) ppt. (0.5)% 0.5% 1.0 ppt.
Fiscal Year Ended Fiscal Year Ended
(in thousands) March 31,
2008 March 31,
2009 Increase
(Decrease) March 31,
2009 March 31,
2010 Increase
(Decrease)
Income from continuing operations before
income taxes $ 121,020 $ 57,917 $ (63,103) (52.1)% $ 57,917 $ 100,740 $ 42,823 73.9%
Income tax expense from continuing
operations 29,008 12,575 (16,433) (56.6)% 12,575 24,287 11,712 93.1%
Income from continuing operations, net of
tax $ 92,012 $ 45,342 $ (46,670) (50.7)% $ 45,342 $ 76,453 $ 31,111 68.6%
Effective tax rate 24.0% 21.7% (2.3) ppt. 21.7% 24.1% 2.4. ppt.