Harman Kardon 2011 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2011 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 128

  • 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
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

enhance sound for Apple’s iPad®, iPod®and iPhone®, and other MP3 players. We provide transducers and
built-in speakers for leading notebook computers, such as Dell and Toshiba. Additionally, we provide an
extensive line of audio systems for personal computers that are recognized for their award winning design and
high fidelity. Aftermarket mobile products include speakers, amplifiers and digital signal processors (“DSPs”)
that deliver high-quality in-car audio. Our Consumer products are sold in specialty audio stores, mass-market
retail stores such as the Apple stores, Best Buy, Target, Media Markt and Fnac, and through online retailers, such
as Amazon.com.
Professional
Our Professional segment designs, manufactures and markets an extensive range of loudspeakers, power
amplifiers, digital signal processors, microphones, headphones and mixing consoles used by audio professionals
in concert halls, stadiums, airports, houses of worship and other public spaces. For example, our Professional
products can be found in prestigious venues and at important events such as the GRAMMY®Awards, Super
Bowl XLV, the Oscars®, the Country Music Awards, the Indian National Games, New York’s Lincoln Center,
the Norwegian Parliament, China’s National Day Celebration, the City Center Las Vegas Complex and the
Minnesota Twin’s Target Field. We design products for recording, broadcast, cinema and music reproduction
applications. We also provide high-quality products to the sound reinforcement, music instrument support and
broadcast and recording segments of the professional audio market. Our Professional products are marketed
globally under brand names including JBL Professional, AKG, Crown, Soundcraft, Lexicon, DigiTech®, dbx,
BSS, Studer and Selenium.
Our Professional segment also offers complete systems solutions for professional installations and users
around the world. Our products can be linked by our HiQnet®network protocol providing a central digital
network for audio professionals to control different aspects of a complex system. We believe that we are well
equipped to provide turnkey systems solutions for professional audio applications that offer the customer
improved performance, reliability, ease of installation and reduced cost. Our Professional system products are
marketed globally under a number of brand names, including JBL, AKG, Crown, Soundcraft, Lexicon, Mark
Levinson, Revel®, DigiTech, dbx and Studer.
Other
Our Other segment includes compensation, benefits and occupancy costs for corporate employees, net of
reporting segment allocations, expenses associated with new technology innovation and our corporate brand
identity campaign, as well as the results of operations of Aha.
Acquisitions
On February 10, 2011, we acquired all of the issued and outstanding shares of 3dB Research Limited
(“3dB”), a leading developer of music and signal processing technology. On September 13, 2010, we acquired
Aha, a provider of on-demand mobile and location-based internet content services. The operating results of all
acquired companies are included in our Consolidated Statements of Operations starting from the date of the
respective acquisition.
Results of Operations
Our results of operations depend on our sales of audio products and electronic systems in the Automotive,
Consumer and Professional markets. Our products are sold worldwide, with the largest markets being the United
States and Germany. Significant portions of our net sales are denominated in Euros.
4