Memorex 2007 Annual Report Download - page 34

Download and view the complete annual report

Please find page 34 of the 2007 Memorex 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 129

  • 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
  • 129

Products (EP) segment. The EP segment is currently focused primarily in North America and primarily under the Memorex
brand name.
Data Storage Media
The Data Storage Media segment is organized, managed and reported, internally and externally, differentiated by the
regional markets we serve: Americas, Europe and Asia Pacific. Each of these segments has the responsibility for selling
virtually all of our product lines except for consumer electronic products which are sold through our EP segment.
The Americas segment, our largest segment by revenue, includes North America, South America and the Caribbean.
The United States represents the largest current market for our products. It has a great variety and sophistication of
distribution channels from value-added resellers, OEMs, retail outlets, mass merchants and on-line resellers. The countries
of South America and the Caribbean represent potential growth markets with increasing penetration of IT in the commercial
and consumer markets.
Europe is our second largest segment by revenue and incorporates our business results in most of the Middle East
and Africa. Europe also includes most of the GDM revenue. Western Europe exhibits traits similar to North America in
terms of overall breadth of products, high penetration of end user markets and breadth and sophistication of distribution
channels. Emerging markets in Eastern Europe and the Middle East represent potential growth markets for our products
as IT end user and consumer markets grow.
Asia Pacific (APAC) is our largest segment in terms of geographic area covered and populations served. It also has
the widest diversity of languages, cultures and currencies of any of our segments, though it is the smallest segment in
terms of revenue. Japan is the single largest market in APAC and is similar to North America and Western Europe in
terms of overall penetration of IT into the market, though distribution channels are less diverse than those in other regions.
The largest growth potential in this segment exists in emerging markets, particularly in China and India.
Electronic Products
The Electronic Products segment provides sourcing and marketing capability for consumer electronic products which
we did not previously offer. The segment product portfolio includes TVs and digital displays, including flat-panel LCDs and
digital picture frames, IPod
TM
accessories, clock-radios, MP3 players, home theater video, portable and fashion DVD
players, karaoke systems and office products such as voice recorders. This segment includes a brand licensing agreement
with MTV Networks, a division of Viacom International, to design and distribute consumer electronic items under certain
Nickelodeon character-based properties and the NPower brands. This segment is currently focused primarily in North
America and primarily under the Memorex brand name. This segment also has some degree of seasonality with its focus
on consumer channels.
The chart below breaks out our 2007 revenue by segment:
2007 Revenue by Segment
Americas
46%
Electronic
Products
6%
Asia Pacific
16%
Europe
32%
5