Plantronics 2015 Annual Report Download - page 28

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 that are simple to operate in sufficient volumes and acceptable margins
• Price our products competitively
• Hire and retain qualified personnel in the highly competitive field of software development
• 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, our business, financial
condition, and results of operations will be materially adversely affected.
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 own and operate a manufacturing facility in Tijuana, Mexico. We also have suppliers, contact manufacturers, and other vendors
throughout Asia and 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
• Changes in regulatory requirements
• The implementation or expansion of trade restrictions, sanctions or other penalties against one or more countries, its
citizens or industries
• Tariffs, taxes 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 in which we operate
• 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 and adversely affect regional economic
activity and business operations in general, which in turn may harm our business, financial condition, and results of operations.
We sell our products through various distribution channels that can be volatile, and failure to establish and maintain successful
relationships with our channel partners could materially adversely affect our business, financial condition, or results of
operations. In addition, customer bankruptcies or financial difficulties may impact our business.
We sell substantially all of our products through distributors, retailers, OEMs, and telephony service providers. Effectively
managing these relationships and avoiding channel conflicts is challenging. Our existing relationships with these parties are
generally not exclusive and can be terminated by us or them without cause on short notice. These customers also sell or may sell
products offered by our competitors. To the extent our competitors offer more favorable terms or more compelling products, they
may not recommend, de-emphasize, or discontinue carrying our products. Moreover, our OEMs may elect to manufacture their
own products that are similar to ours. Additionally, it is becoming easier for small online sellers to enter the market unburdened
with physical locations, employees and support personnel which can force our larger traditional brick and mortar resellers to reduce
their selling prices and in turn demand lower selling prices from us. The inability to establish or maintain successful relationships
with distributors, OEMs, retailers, and telephony service providers or to expand our distribution channels and sales models could
materially adversely affect our business, financial condition, or results of operations.
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