FORM 10-K - Harman

4 Harman International Annual Report 2009
shares, raising gross proceeds of $191 million. As of June
30, 2009, the Company had cash and cash equivalents
of $591 million, a comfortable liquidity position as we
complete our turnaround and execute on the STEP Change
program.
While optimizing the Company’s higher-cost operations, we
have invested strategically in the emerging markets where
untapped opportunity abounds for Harman. We opened new
R&D centers in Bangalore, India and Shanghai, China, where
we now employ nearly 200 highly qualifi ed software and
product development engineers. We inaugurated a new
world-class manufacturing plant in Suzhou, China and were
quickly rewarded with a new automotive audio project
from BMW China. We expanded our production facilities in
Hungary and Mexico, and divested or outsourced several non-core activities. We launched a comprehensive
growth and channel strategy for the Asian markets.
Despite the severe challenges of the global economic crisis, Harman continued to invest in innovation and
to execute on its large project backlog. Our automotive team successfully completed the last of 13 major
platform launches by year end, and as a result, we have been rewarded with new business by our satisfi ed
customers. As this annual report goes to press, our company has been awarded two strategic orders for
next-generation infotainment systems from BMW and Daimler.
Including these new orders, we now have an estimated
$10 billion in awarded audio and infotainment business
which will be delivered over the next several years.
Our recent platform introductions and new awards have
lifted our company to a new level that is the envy of our
competition. This large volume of awarded business
validates Harman’s strong competitive advantage and
it will serve our company both technologically and
commercially for many years to come. We can be proud
of the fact that the majority of luxury cars worldwide
now have Harman infotainment systems and that we ship
some two million branded audio systems annually to
enrich the driving experience and help automakers market
their cars at premium prices. An estimated 20 million vehicles
on the road today are equipped with Harman systems
for audio, navigation, infotainment and driver assistance.
Our innovative products helped automakers earn numerous honors during Fiscal Year 2009, including the
Harman equipped Hyundai Genesis Sedan which was named 2009 North American Car of the Year at the
Detroit Auto Show and the BMW® 7-Series which was judged as technologically most advanced car by a
leading analyst. To continue this legacy of innovation, we launched the Harman GreenEdge series of energysaving
audio and infotainment systems and formed an exclusive partnership with Lotus Engineering of the
UK to develop advanced sound management solutions for the coming wave of hybrid and electric vehicles.
Our Consumer Division sharpened its focus by eliminating under-achieving products, yielding a net SKU
reduction of 50 percent. This freed precious resources to improve execution on development and market
launches. The division introduced a number of strategic new products, including a premium Blu-ray Disc®
player, a line of stylish audio products co-branded with fashion leader Roxy, and high-fi delity speakers for
computer makers Lenovo and Toshiba. Harman Consumer products were honored by leading journalists
and trade associations, boosting the brand recognition that helps drive customer loyalty in the Company’s
other businesses.