Plantronics 2013 Annual Report Download - page 29

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19
The success of our products depends on several factors, including our ability to:
• Anticipate technology and market trends
• Develop innovative new products and enhancements on a timely basis
• Distinguish our products from those of our competitors
• Create industrial designs that appeal to our customers and end-users
• Manufacture and deliver high-quality products in sufficient volumes and acceptable margins
• Price our products competitively
• Hire and retain qualified personnel in the highly competitive field of software development for future generations of our
products
• Provide timely, effective and accurate technical product support to our customers
• Leverage new and existing channel partners effectively
If we are unable to develop, manufacture, market, and introduce enhanced or new products in a timely manner in response to
changing market conditions or customer requirements, including changing fashion trends and styles, it will materially adversely
affect our business, financial condition, and results of operations. Furthermore, as we develop new generations of products more
quickly, we expect that the pace of product obsolescence will increase concurrently. The disposition of inventories of excess or
obsolete products may result in reductions to our operating margins and materially adversely affect our earnings and results of
operations.
We have significant foreign manufacturing operations and rely on third party manufacturers located outside the U.S., and a
significant amount of our revenues are generated internationally, which subjects our business to risks of international
operations.
We have a manufacturing facility in Tijuana, Mexico. We also have suppliers and other vendors throughout Asia, including
GoerTek, Inc., located in Weifang, China, which is the manufacturer of the majority of our Bluetooth products. We also generate
a significant amount of our revenues from foreign customers.
Our international operations and sales expose us to various risks including, among others:
• Fluctuations in foreign currency exchange rates
• Cultural differences in the conduct of business
• Greater difficulty in accounts receivable collection and longer collection periods
• The impact of recessionary, volatile or adverse global economic conditions
• Reduced protection for intellectual property rights in some countries
• Unexpected changes in regulatory requirements
• Tariffs and other trade barriers, particularly in developing nations such as Brazil, India, and others
• Political conditions, health epidemics, civil unrest, or criminal activities within each country
• The management, operation, and expenses associated with an enterprise spread over various countries
• The burden and administrative costs of complying with a wide variety of foreign laws and regulations
• Currency restrictions
• Compliance with anti-bribery laws, including the United States Foreign Corrupt Practices Act and the United Kingdom's
Bribery Act
The above-listed and other inherent risks of international operations could materially adversely affect our business, financial
condition, and results of operations.
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