Harman Kardon 2007 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2007 Harman Kardon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 95

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95

6
loudspeaker enclosures, wire milling, voice coil winding and the use of computer controlled lathes and other
machine tools to produce precision components.
In North America, our principal Professional manufacturing facilities for loudspeakers are located in
California and for electronic products, including amplifiers and effects devices, are located in Utah and
Indiana. European Professional electronics manufacturing includes mixing consoles in the United Kingdom
and Switzerland, professional recording and broadcast equipment in Switzerland and microphones and
headphones in Austria.
Our facilities have been designed to emphasize worker safety and compliance with environmental and safety
regulations.
Suppliers
We use externally sourced microchips in many of our products. A significant disruption in our microchip
supply chain and an inability to obtain alternative sources would have a material impact on our
consolidated results of operations.
Several independent suppliers manufacture electronic products designed by Harman/Kardon, certain
Consumer and Professional loudspeakers and electronic products and personal navigation devices. We do
not believe the loss of any one of these suppliers would have a material impact on our consolidated results
of operations or consolidated financial position.
Trademarks and Patents
We market our products under numerous brand names that are protected by both pending and registered
trademarks around the world. Samples of our brands include JBL,
2
Infinity,
2
Harman/Kardon,
2
Lexicon,
2
Mark Levinson,
2
Revel,
2
Crown,
2
Becker,
2
Soundcraft,
2
Spirit,
2
DigiTech,
2
AKG,
2
Studer,
2
BSS
2
and
dbx.
2
Our trademark registrations cover use of trademark rights in connection with various products, such
as loudspeakers, speaker systems, speaker system components and other electrical and electronic devices.
We have registered or taken other protective measures for many of these trademarks in substantially all
major industrialized countries.
As of June 30, 2007 we had 1,885 trademark registrations and 294 pending trademark applications around
the world. On that date, we also had 1,695 United States and foreign patents and 2,172 pending patent
applications covering various audio, infotainment and software products.
Seasonality
We experience seasonal fluctuations in sales and earnings. Historically, our first fiscal quarter ended
September 30 is generally the weakest due to automotive model year changeovers and the summer holidays
in Europe. Our sales and earnings may also vary due to customer acceptance of our products, product
offerings by our competitors and general economic conditions, including fluctuations in foreign currency
exchange rates.