Harman Kardon 2010 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 Section 21E of the Securities Exchange Act of 1934, as amended. You should not place undue reliance
on these statements. Forward-looking statements include information concerning possible or assumed future
results of operations, cash flows, 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 achieve the intended benefits and anticipated savings of our STEP Change cost reduction
initiatives;
• our ability to maintain profitability in our automotive division;
• the loss of one or more significant customers, or the loss of a significant platform with an automotive
customer;
• warranty obligations for defects in our products;
• fluctuations in currency exchange rates, particularly with respect to the value of the U.S. dollar and the
Euro;
• our ability to successfully implement our global footprint initiative, including achieving cost reductions
and other benefits in connection with the restructuring of our manufacturing, engineering, procurement
and administrative organizations;
• the inability of our suppliers to deliver products at the scheduled rate and disruptions arising in
connection therewith;
• our ability to attract and retain qualified senior management and to prepare and implement an
appropriate succession plan for our critical organizational positions;
• our failure to implement and maintain a comprehensive disaster recovery program;
• our failure to comply with governmental rules and regulations, including the Foreign Corrupt Practices
Act and U.S. export control laws, and the cost of compliance with such laws;
• our ability to maintain a competitive technological advantage through innovation and leading product
designs;
• acceptance of our mid-platform infotainment systems by original equipment manufacturers (“OEMs”)
and consumers;
• the outcome of pending or future litigation and other claims, including, but not limited to, the current
stockholder and Employee Retirement Income Security Act of 1974 (“ERISA”) lawsuits; and
• our ability to enforce or defend our ownership and use of intellectual property rights.
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