Harman Kardon 2009 Annual Report Download - page 19

Forward–Looking Statements
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of
1933 and 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). You should not place
undue reliance on these statements. Forward-looking statements include information concerning possible or
assumed future results of operations, capital expenditures, the outcome of pending legal proceedings and claims,
goals and objectives for future operations, including descriptions of our business strategies and purchase
commitments from customers. These statements are typically identified by words such as “believe,” “anticipate,”
“expect,” “plan,” “intend,” “estimate,” “should,” “will” and similar expressions. We base these statements on
particular assumptions that we have made in light of our industry experience, as well as our perception of
historical trends, current conditions, expected future developments and other factors that we believe are
appropriate under the circumstances. As you read and consider the information in this report, you should
understand that these statements are not guarantees of performance or results. They involve risks, uncertainties
and assumptions. In light of these risks and uncertainties, we cannot assure you that the results and events
contemplated by the forward-looking statements contained in, or incorporated by reference into, this report will
in fact transpire.
You should carefully consider the risks described below and the other information in this report because
they identify important factors that could cause actual results to differ materially from those predicted in any
such forward-looking statements. Our operating results may fluctuate significantly and may not meet our
expectations or those of securities analysts or investors. The price of our stock would likely decline if this occurs.
Factors that may cause fluctuations in our operating results include, but are not limited to, the following:
• our ability to successfully implement our strategic initiatives, including our STEP Change cost
reduction program, and to achieve the intended benefits and anticipated savings of those initiatives;
• automobile industry sales and production rates and the willingness of automobile purchasers to pay for
the option of a premium audio system and/or a multi-function infotainment system;
• changes in consumer confidence and spending and worsening economic conditions worldwide;
• the bankruptcy or financial deterioration of one or more of our major customers or suppliers;
• the loss of one or more significant customers, including our automotive manufacturer customers, or the
loss of a significant platform with an automotive customer;
• changes in interest rates and the availability of financing affecting corporate and consumer spending,
including the effects of continued volatility and further deterioration in the financial and credit markets;
• fluctuations in currency exchange rates, particularly with respect to the value of the U.S. dollar and the
Euro, and other risks inherent in international trade and business transactions;
• warranty obligations for defects in our products;
• our ability to satisfy contract performance criteria, including our ability to meet technical specifications
and due dates on new platforms, at expected profit margins;
• competition in the automotive, consumer or professional markets in which we operate, including
pricing pressure in the market for personal navigation devices (“PNDs”);
• our ability to achieve cost reductions and other benefits in connection with the restructuring of our
manufacturing, engineering and administrative organizations;
• model-year changeovers and customer acceptance in the automotive industry;
• our ability to enforce or defend our ownership and use of intellectual property;
• our ability to maintain a competitive technological advantage within the systems, services and products
we provide into the marketplace;
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