Harman Kardon 2008 Annual Report Download - page 41

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23
Overview
We design, manufacture and market high-quality, high-fidelity audio products and electronic systems for
the automotive, consumer and professional markets. We have developed, both internally and through a
series of strategic acquisitions, a broad range of product offerings sold under renowned brand names in
our principal markets. These brand names have a heritage of technological leadership and product
innovation. Our three reportable business segments, Automotive, Consumer and Professional, are based
on the end-user markets we serve.
Automotive designs, manufactures and markets audio, electronic and infotainment systems for vehicle
applications. Our systems are generally shipped directly to our automotive customers for factory
installation. Infotainment systems are a combination of information and entertainment components that
may include or control GPS navigation, traffic information, voice-activated telephone and climate control,
rear seat entertainment, wireless Internet access, hard disk recording, MP3 playback and a premium
branded audio system. We expect future infotainment systems to also provide driver safety capabilities
such as lane guidance, pre-crash emergency braking, adaptive cruise control, and night vision.
Automotive also provides aftermarket products such as personal navigation devices (“PNDs”) to
customers primarily in Europe.
Consumer designs, manufactures and markets audio, video and electronic systems for multimedia, home
and mobile applications. Multimedia applications include innovative accessories for portable electronic
devices including music-enabled cell phones such as the iPhone, and MP3 players including the iPod.
Our multimedia applications also include audio systems for personal computers. Home applications
include systems to provide high-quality audio throughout the home and to enhance video systems such as
home theatres. Aftermarket mobile products include speakers and amplifiers that deliver audio
entertainment in the vehicle. Consumer products are primarily distributed through retail outlets.
Professional designs, manufactures and markets loudspeakers and electronic systems used by audio
professionals in concert halls, stadiums, airports, houses of worship and other public spaces. We also
develop products for recording, broadcast, cinema, touring and music reproduction applications. In
addition, we have leading products in both the portable PA market and musician vertical markets serving
small bands, DJs and other performers. A growing number of our products are enabled by our proprietary
HiQnet protocol which provides centralized monitoring and control of both complex and simple
professional audio systems.
Our products are sold worldwide, with the largest markets being the United States and Germany. In the
United States, our primary manufacturing facilities are located in California, Kentucky, Missouri, Indiana
and Utah. Outside of the United States, we have significant manufacturing facilities in Germany, Austria,
the United Kingdom, Mexico, Hungary, France and China. During fiscal 2008, we announced a
restructuring program that will reduce our manufacturing footprint and result in the closure of our
Automotive manufacturing facilities in California and Indiana. We include further information regarding
our restructuring program later in this discussion.