Full Description

Harman International Industries, Incorporated (Harman International), incorporated in 1980, is engaged in the development, manufacture and marketing of high-fidelity audio products and electronic systems. The Company has developed, both internally and through a series of acquisitions, a range of product offerings sold under AKG, Crown, JBL, Infinity, Harman/Kardon, Lexicon, dbx, BSS, Studer/Soundcraft, Mark Levinson and Becker brand names. It operates in four segments: Automotive, Consumer and Professional are based on the end-user markets it serves. Its fourth segment, Other, includes its QNX business, which was previously reported in its Automotive segment. As of June 30, 2009, the Company’s Professional segment included its Harman Specialty business. Its Harman Specialty business includes Mark Levinson, Revel and Lexicon branded products.

Automotive

The Company’s Automotive segment designs, manufactures and markets audio, electronic and infotainment systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers. Its infotainment systems are a combination of information and entertainment components that may include or control global positioning system (GPS) navigation, traffic information, voice-activated telephone and climate control, rear seat entertainment, wireless Internet access, hard disk recording, moving picture average group- 3 layer (MP3) playback and a branded audio system. The Company’s Automotive products are marketed worldwide under brand names, including JBL, Infinity, Mark Levinson, Harman/Kardon, Logic 7, Lexicon and Becker. It also has a sole alliance with Bowers & Wilkins to develop, manufacture, sell or service audio systems under the Bowers & Wilkins brand name. Global automotive customers for its audio and infotainment systems include Audi/Volkswagen, BMW, Daimler, Chrysler, Toyota/Lexus, Hyundai, Porsche, Land Rover, PSA Peugeot Citroën and Jaguar. Harman International also produces a Harman/Kardon branded infotainment system for Harley-Davidson touring motorcycles. Its branded audio systems are sold independently or in conjunction with its infotainment systems. Its Automotive segment also markets personal navigation devices that are primarily sold in Europe.

Consumer

The Company’s Consumer segment designs, manufactures and markets a wide-range of mid- to high-end audio and consumer electronics for home, multimedia and mobile applications. Its Consumer products feature some of the audio brands, including AKG, Harman/Kardon, Infinity, JBL and Mark Levinson. Home applications include home audio and theater systems, as well as distributed systems that provide multi-zone audio and video. Multimedia applications comprise a range of accessories, such as designer fashion earbuds and noise cancelling headphones that enhance the sound of portable electronic devices. Its branded audio products for multimedia applications are primarily designed to enhance sound for Apple’s iPods and iPhones, and other MP3 players. Harman International provides transducers and built-in speakers for notebook computers, such as Toshiba. Additionally, it provides a line of audio systems for personal computers. Aftermarket mobile products include speakers that deliver in-car audio. Its 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

Harman International’s Professional segment designs, manufactures and markets a 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. It designs products for recording, broadcast, cinema and music reproduction applications. It also provides products to the sound reinforcement, music instrument support and broadcast and recording segments of the professional audio market. Its Professional products are marketed globally under brand names, including JBL Professional, AKG, Crown, Soundcraft, Lexicon, DigiTech, dbx, BSS and Studer. Harman International also offers systems solutions for professional installations and users worldwide. Its products can be linked by its HiQnet network protocol providing a central digital network for audio professionals to control different aspects of a system.

Other (QNX)

The Other segment includes the operations of the Company’s QNX business, which offers real-time operating system software, middleware, development tools and consulting services. The markets served by its QNX business include automotive, industrial control and automation, energy, medical, networking and telecommunications, and security and defense. The technology companies holds QNX solutions in such products as the Intel Atom processor, Adobe Flash and Apple’s iPod. QNX products include the QNX Neutrino RTOS operating system and the QNX Aviage suite of middleware. Additionally, its QNX technologies can be found in a range of products, such as medical devices, the National Aeronautics and Space Administration (NASA) Space Arm, optical telecommunications networks and in a number of defense applications, including control, sensor and communications systems.

The Company competes with Bose, Pioneer ASK, Foster Electric, Panasonic, Alpine, Bosch, Panasonic, Continental, Visteon, Mitsubishi Electronics, Aisin Seiki, Denso, Klipsch, Polk Audio, Bowers &Wilkins, Boston Acoustics, Yamaha, Sony, Denon, Onkyo, Pioneer, Marant, Krell, McIntosh, Audio Research, Meridian, Linn, Classe, Altec Lansing, Klipsc, Creative Labs, Altec Lansing, Logitech, Cyber Acoustics, Telex, Electro Voice, Mackie, QSC, Meyer Sound Laboratories, Sennheiser, Peavey, Shure, Audio Technica, Loud Technologies, Inc., Lawo, Harris Corporation, DigiDesign/M-Audio, Genelec, KRK, TC Electronics, Stagetec, Sony, Peavey, QSC, Shure, Sennheiser, Line 6, Dunlop, Zoom, Audio Technica, Roland, Siemens, Peavey and Tannoy.