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This excerpt taken from the ALDN 20-F filed Jul 2, 2007. Manufacturing The manufacturing process of our hardware-based products, which consists of tokens for our HASP and eToken products, involves the assembly of purchased components and sub-assemblies. We have one production facility in Kiryat Gat, Israel. After assembly, each hardware-based product is tested and packaged. In the future, we may enter into arrangements with subcontractors with respect to the assembly of our products. We believe that our current manufacturing facility, together with any future arrangements with subcontractors, will be sufficient to meet the projected demand for our products. We purchase both custom and off-the-shelf components from a number of suppliers. Except as described below, the components we purchase can be obtained from more than one supplier, although in some cases lead-time may be required in order to change suppliers. We rely on a number of single source suppliers for the following key components of our hardware-based products:
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We do not have any long term supply arrangements with any of our suppliers with respect to these key components. We estimate that it would take between six months and one year to find alternate suppliers for these key components and modify our products to incorporate them. We believe that our inventory of each of the key components referred to above is sufficient to enable us to continue manufacturing our products in the event that we need to change one of our single source suppliers. Nevertheless, we may encounter delays or difficulties in redesigning our products and may not be able to locate alternate suppliers on a timely basis. If an adequate supply of any of these components is not obtained in a timely manner or at all, we may have difficulty meeting our production needs. We license the anti-spam and web filtering functions incorporated in our eSafe product pursuant to a license agreement which is automatically renewed for successive one-year terms, unless a notice of termination is given by either of the parties prior to the renewal. We pay our licensor royalties consisting of a percentage of our revenues from eSafe. In the event that our licensor cancels this license arrangement with us, we will be required to seek an alternate licensor for these functions. This excerpt taken from the ALDN 20-F filed Jun 28, 2006. Manufacturing The manufacturing process of our hardware-based products, which consists of tokens for our HASP and eToken products, involves the assembly of purchased components and sub-assemblies. We have one production facility in Kiryat Gat, Israel. After assembly, each hardware-based product is tested and packaged. In the future, we may enter into arrangements with subcontractors with respect to the assembly of our products. We believe that our current manufacturing facility, together with any future arrangements with subcontractors, will be sufficient to meet the projected demand for our products. We purchase both custom and off-the-shelf components from a number of suppliers. Except as described below, the components we purchase can be obtained from more than one supplier, although in some cases lead-time may be required in order to change suppliers. We rely on a number of single source suppliers for the following key components of our hardware-based products:
We do not have any long term supply arrangements with any of our suppliers with respect to these key components. We estimate that it would take between six months and one year to find alternate suppliers for these key components and modify our products to incorporate them. We believe that our inventory of each of the key components referred to above is sufficient to enable us to continue manufacturing our products in the event that we need to change one of our single source suppliers. Nevertheless, we may encounter delays or difficulties in redesigning our products and may not be able to locate alternate suppliers on a timely basis. If an adequate supply of any of these components is not obtained in a timely manner or at all, we may have difficulty meeting our production needs. We license the anti-spam and web filtering functions incorporated in our eSafe product pursuant to a license agreement which automatically renews for successive one-year terms The first renewal period expired on December 31, 2005 and following the first renewal period the agreement automatically renews for unlimited successive one year terms subject to either party’s request to terminate at the end of the initial term or any extension. We pay our licensor royalties consisting of a percentage of our revenues from eSafe. In the event that our licensor cancels this license arrangement with us, we will be required to seek an alternate licensor for these functions. C. ORGANIZATIONAL STRUCTURE We are organized under the laws of the State of Israel. We wholly own the subsidiaries listed below directly or through other subsidiaries, unless otherwise specified in the footnotes below. These subsidiaries are involved in distribution, support for and management of our products:
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Halafad BV, our wholly-owned holding company, incorporated in The Netherlands has the wholly-owned subsidiaries listed below. These subsidiaries are all involved in distribution, support and management of our products. In addition, our German subsidiary provides us with research and development services:
D. PROPERTY, PLANTS AND EQUIPMENT Our corporate headquarters and principal research and development facilities are located in a 29,121 square foot facility in Tel Aviv, Israel. The lease for this facility expires in August 2006. In August 2006, we plan to move our corporate headquarters and principal research and development facility to a new building in the Kiryat Arye industrial area of Petach Tikva. The term of our lease for the new 49,514 square foot facility is 5 years, with an option to extend the lease for 5 more years. Our manufacturing facility is located in a 10,521 square foot facility in Kiryat Gat, Israel. We lease this facility pursuant to a lease that expires in December 2006 which we will either extend or move to a new location. We also lease an 11,883 square foot facility in Tirat Hacarmel, Israel for a term expiring in December 2007, where our content security research and development activities are headquartered. Our subsidiaries also lease facilities in France, Germany, Japan, the Netherlands, the United Kingdom, Spain, Hong Kong and the United States. These facilities are primarily for sales and marketing functions. We also conduct research and development activities at our facilities near Munich, Germany. Our aggregate annual lease expenses in 2005 for our facilities were $1.8 million. We believe that our current facilities together with our planned new corporate headquarters and principal research and development facility are adequate for our current and foreseeable needs. We believe we will be able to find alternate facilities if we require them or if we are unable to renew our existing leases on reasonable terms or at all. This excerpt taken from the ALDN 20-F filed May 31, 2005. ManufacturingThe manufacturing process of our hardware-based products, which consists of tokens for our HASP and eToken products, involves the assembly of purchased components and sub-assemblies. We have one production facility in Kiryat Gat, Israel. After assembly, each hardware-based product is tested and packaged. In the future, we may enter into arrangements with subcontractors with respect to the assembly of our products. We believe that our current manufacturing facility, together with any future arrangements with subcontractors, will be sufficient to meet the projected demand for our products. We purchase both custom and off-the-shelf components from a number of suppliers. Except as described below, the components we purchase can be obtained from more than one supplier, although in some cases lead-time may be required in order to change suppliers. We rely on a number of single source suppliers for the following key components of our hardware-based products: -20- We do
not have any long term supply arrangements with any of our suppliers with respect to these
key components. We estimate that it would take between six months and one year to find
alternate suppliers for these key components and modify our products to incorporate them.
We believe that our inventory of each of the key components referred to above is
sufficient to enable us to continue manufacturing our products in the event that we need
to change one of our single source suppliers. Nevertheless, we may encounter delays or
difficulties in redesigning our products and may not be able to locate alternate suppliers
on a timely basis. If an adequate supply of any of these components is not obtained in a
timely manner or at all, we may have difficulty meeting our production needs. We
license the anti-spam and web filtering functions incorporated in our eSafe product
pursuant to a license agreement which expires in June 2005. We pay our licensor royalties
consisting of a percentage of our revenues from eSafe. In the event that our licensor does
not renew this license arrangement with us, we will be required to seek an alternate
licensor for these functions. | EXCERPTS ON THIS PAGE:
RELATED TOPICS for ALDN: |
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