Memorex 2009 Annual Report Download - page 11

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Business Segments
We operate in two broad market categories: (1) removable data storage products and accessories and (2) audio and
video consumer electronic products and accessories (electronic products).
Data Storage Products and Accessories
Our data storage media business is organized, managed and internally and externally reported as segments
differentiated by the regional markets we serve: Americas, Europe and Asia Pacific. Each of these geographic segments
has responsibility for selling virtually all of our product lines, with the exception of consumer electronics. Our consumer
electronic products are sold primarily through our fourth segment, Electronic Products.
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 including value-added resellers, OEMs, retail outlets, mass merchants and on-line resellers. The
countries in South America and the Caribbean represent potential growth markets with increasing penetration of
Information Technology (IT) in the commercial and consumer markets.
Europe is our second largest segment by revenue. Western Europe exhibits traits similar to North America in terms
of overall breadth of product offerings, high penetration of end user markets and breadth and sophistication of distribution
channels. Emerging markets in Eastern Europe 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. 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 its
distribution channels are less developed than those of other regions.
Consumer Electronic Products and Accessories
The Electronic Products (EP) segment sells consumer electronic products and accessories and is currently focused
primarily in North America and primarily under the Memorex and XtremeMac brand names. This segment experiences
some degree of seasonality with its focus on consumer channels resulting in the second half of the year being relatively
stronger than the first.
The chart below breaks out our 2009 revenue by segment:
2009 Revenue by Segment
Electronic Products
11%
Asia Pacific
24%
Europe
25%
A
mericas
40%
See Note 16 to the Consolidated Financial Statements for further information regarding our business segments and
geographic information.
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