Plantronics 2010 Annual Report Download - page 9

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PART I
This Annual Report on Form 10-K is filed with respect to our fiscal year 2010. Each of our fiscal years ends on the Saturday closest
to the last day of March. Fiscal year 2010 ended on April 3, 2010, fiscal year 2009 ended on March 28, 2009, and fiscal year 2008
ended on March 29, 2008. Fiscal year 2010 consisted of 53 weeks and fiscal years 2009 and 2008 each consisted of 52 weeks. For
purposes of consistent presentation, we have indicated in this report that each fiscal year ended "March 31" of the given year, even
though the actual fiscal year end may have been on a different date.
CERTAIN FORWARD-LOOKING INFORMATION
This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of
1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
These statements may generally be identified by the use of such words as "expect," "anticipate," "believe," "intend," "plan," "will," or
"shall," and are based on current expectations and entail various risks and uncertainties. Our actual results could differ materially
from those anticipated in such forward-looking statements as a result of a number of factors, including, but not limited to the factors
discussed in the subsection entitled "Risk Factors" in Item 1A of this Form 10-K. This Annual Report on Form 10-K and our Annual
Report to Stockholders should be read in conjunction with these risk factors. We undertake no obligation to update or revise publicly
any forward-looking statements, whether as a result of new information, future events or otherwise.
ITEM 1. BUSINESS
COMPANY BACKGROUND
Plantronics, Inc. (“Plantronics,” “the Company,” “we”, “our,” or “us”) is a leading worldwide designer, manufacturer, and marketer of
lightweight communications headsets, telephone headset systems, and accessories for the business and consumer markets under the
Plantronics brand. In addition, we manufacture and market, under our Clarity brand, specialty telephone products, such as telephones
for the hearing impaired, and other related products for people with special communication needs.
We make headsets for use in offices and contact centers, with mobile and cordless phones, and with computers and gaming consoles.
Plantronics headsets are communications tools, providing freedom to use your hands while staying connected to your communication
or entertainment device, freedom to move around, and freedom from using keyboards by enhancing speech recognition
capabilities. We apply a variety of technologies to develop high quality products to meet the needs of our customers, whether it is for
communications or personal entertainment. Plantronics headsets are widely used with cell phones, in contact centers, in the office, in
the home, for applications such as Unified Communications (“UC”), with Voice over Internet Protocol (“VoIP”), for gaming, and for
other specialty applications. Our major product categories include Office and Contact Center (“OCC”), 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 Clarity, which includes
specialty products marketed for hearing impaired individuals. All products are generally sold under the Plantronics and Clarity
brands.
We ship a broad range of communications products to 70 countries through a worldwide network of distributors, retailers, wireless
carriers, original equipment manufacturers (“OEMs”), and telephony service providers. We have well-developed distribution
channels in North America, Europe, Australia and New Zealand, where use of our products is widespread. Our distribution channels
in other regions of the world are less mature, and while we primarily serve the contact center markets in those regions, we are
expanding into the office, mobile and entertainment, digital audio, and specialty telephone markets in those locations. Revenues from
our retail channel are cyclical, with our third fiscal quarter typically being the strongest quarter due to holiday seasonality.
Plantronics, founded in 1961, is incorporated in the State of California and is listed on the New York Stock Exchange (“NYSE”)
under the ticker symbol “PLT”.
On August 18, 2005, we acquired Altec Lansing Technologies, Inc. (“Altec Lansing”), a market leader in docking and personal
computer (“PC”) audio systems, and it subsequently became our Audio Entertainment Group (“AEG”) segment. On December 1,
2009, we sold Altec Lansing, our AEG segment. As a result of the sale, we have classified the AEG operating results, including the
loss on the sale of AEG, as discontinued operations in the Consolidated statement of operations for all periods presented. We now
operate as one business segment.