COBR » Topics » (16) Commitments and Contingencies

This excerpt taken from the COBR 10-Q filed May 11, 2009.

(10) COMMITMENTS AND CONTINGENCIES

The Company is subject to various unresolved legal actions, which arise in the normal course of its business. None of these matters are expected to have a material adverse effect on the Company’s financial position or results of operations. However, the ultimate resolution of these matters could result in a change in the Company’s estimate of its liability for these matters.

The Company warrants to the consumer who purchases its products that it will repair or replace, without charge, defective products within a specified time period, generally one year. The Company also has a return policy for its customers that allows customers to return to the Company products returned to them by their customers for full or partial credit based on when the Company’s customer last purchased these products. Consequently, it maintains a warranty reserve, which reflects historical warranty return rates by product category multiplied by the most recent six months of unit sales of that model and the unit standard cost of the model. A roll-forward of the warranty reserve follows:

 

     Three Months Ended
March 31, 2009
    Year Ended
December 31, 2008
 
     (In Thousands)  

Accrued product warranty costs, beginning of period

   $ 897     $ 3,440  

Warranty provision

     422       2,908  

Warranty expenditures

     (621 )     (5,451 )
                

Accrued product warranty costs, end of period

   $ 698     $ 897  
                

At March 31, 2009 and December 31, 2008, the Company had outstanding inventory purchase orders with suppliers totaling approximately $21.7 million and $16.6 million, respectively.

 

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This excerpt taken from the COBR 10-K filed Mar 17, 2009.

(18)  Commitments and Contingencies

The Company is subject to various unresolved legal actions, which arise in the normal course of its business. None of these matters is expected to have a material adverse effect on the Company’s financial position or results of operations. However, the ultimate resolution of these matters can not be determined at this time.

The Company warrants to the consumer who purchases its products that it will repair or replace, without charge, defective products within a specified time period, generally one year. The Company also has a return policy for

 

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its customers that allow them to return, to the Company, products returned to them by their customers for full or partial credit based on when the Company’s customer last purchased these products. Consequently, it maintains a warranty reserve, which reflects historical warranty return rates by product category multiplied by the most recent six months of unit sales of that model and the unit standard cost of the model. A roll-forward of the warranty reserve is as follows:

 

     2008     2007     2006  
     (in thousands)  

Accrued product warranty costs, January 1

   $ 3,440     $ 1,963     $ 1,618  

Warranty provision

     2,908       4,304       3,873  

Warranty expenditures

     (5,451 )     (2,827 )     (3,528 )
                        

Accrued product warranty costs, December 31

   $ 897     $ 3,440     $ 1,963  
                        

The decrease in the accrued warranty reserve from the prior year-end is mainly due to the reduced sales in 2008 of mobile navigation products.

At December 31, 2008 and 2007, the Company had outstanding inventory purchase orders with suppliers totaling approximately $16.6 million and $17.8 million, respectively.

This excerpt taken from the COBR 10-Q filed Nov 13, 2008.

(9) COMMITMENTS AND CONTINGENCIES

The Company is subject to various unresolved legal actions, which arise in the normal course of its business. None of these matters are expected to have a material adverse effect on the Company’s financial position or results of operations. However, the ultimate resolution of these matters could result in a change in the Company’s estimate of its liability for these matters.

The Company warrants to the consumer who purchases its products that it will repair or replace, without charge, defective products within a specified time period, generally one year. The Company also has a return policy for its customers that allows customers to return to the Company products returned to them by their customers for full or partial credit based on when the Company’s customer last purchased these products. Consequently, it maintains a warranty reserve, which reflects historical warranty return rates by product category multiplied by the most recent six months of unit sales of that model and the unit standard cost of the model. A roll-forward of the warranty reserve follows:

 

     Nine Months Ended
September 30, 2008
    Year Ended
December 31, 2007
 
     (In Thousands)  

Accrued product warranty costs, beginning of period

   $ 3,440     $ 1,963  

Warranty provision

     2,247       4,304  

Warranty expenditures

     (4,766 )     (2,827 )
                

Accrued product warranty costs, end of period

   $ 921     $ 3,440  
                

The decrease in the accrued warranty reserve was mainly due to the mobile navigation warranty reserve, which declined to $132,000 at September 30, 2008 from $2.1 million at December 31, 2007 as a result of returns received during the first nine months of 2008 and substantially lower sales of mobile navigation products during this period.

At September 30, 2008 and 2007, the Company had outstanding inventory purchase orders with suppliers totaling approximately $22.1 million and $26.1 million, respectively. This decrease in purchase commitments reflects improved vendor performance, lower two-way radio demand and the mobile navigation strategy change.

 

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This excerpt taken from the COBR 10-Q filed Aug 11, 2008.

(8) COMMITMENTS AND CONTINGENCIES

The Company is subject to various unresolved legal actions, which arise in the normal course of its business. None of these matters are expected to have a material adverse effect on the Company’s financial position or results of operations. However, the ultimate resolution of these matters could result in a change in the Company’s estimate of its liability for these matters.

The Company warrants to the consumer who purchases its products that it will repair or replace, without charge, defective products within a specified time period, generally one year. The Company also has a return policy for its customers that allows customers to return to the Company products returned to them by their customers for full or partial credit based on when the Company’s customer last purchased these products. Consequently, it maintains a warranty reserve, which reflects historical warranty return rates by product category multiplied by the most recent six months of unit sales of that model and the unit standard cost of the model. A roll-forward of the warranty reserve follows:

 

     Six Months Ended
June 30, 2008
    Year Ended
December 31, 2007
 
     (In Thousands)  

Accrued product warranty costs, beginning of period

   $ 3,440     $ 1,963  

Warranty provision

     1,548       4,304  

Warranty expenditures

     (3,759 )     (2,827 )
                

Accrued product warranty costs, end of period

   $ 1,229     $ 3,440  
                

The decrease in the accrued warranty reserve was mainly due to the mobile navigation warranty reserve which declined to $492,000 at June 30, 2008 from $2.1 million at December 31, 2007 as a result of returns received during the first half of 2008 and substantially lower sales of mobile navigation products during this period.

At June 30, 2008 and 2007, the Company had outstanding inventory purchase orders with suppliers totaling approximately $23.6 million and $37.6 million, respectively. This decrease in purchase commitments reflects improved vendor performance, lower two-way radio demand and the mobile navigation strategy change.

 

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This excerpt taken from the COBR 10-Q filed May 14, 2008.

(8) COMMITMENTS AND CONTINGENCIES

The Company is subject to various unresolved legal actions, which arise in the normal course of its business. None of these matters are expected to have a material adverse effect on the Company’s financial position or results of operations. However, the ultimate resolution of these matters could result in a change in the Company’s estimate of its liability for these matters.

The Company warrants to the consumer who purchases its products that it will repair or replace, without charge, defective products within a specified time period, generally one year. The Company also has a return policy for its customers that allows customers to return to the Company products returned to them by their customers for full or partial credit based on when the Company’s customer last purchased these products. Consequently, it maintains a warranty reserve, which reflects historical warranty returns rates by product category multiplied by the most recent six months of unit sales of that model and the unit standard cost of the model. A roll-forward of the warranty reserve follows:

 

     Three Months Ended
March 31, 2008
    Year Ended
December 31, 2007
 
     (In Thousands)  

Accrued product warranty costs, beginning of period

   $ 3,440     $ 1,963  

Warranty provision

     759       4,304  

Warranty expenditures

     (1,939 )     (2,827 )
                

Accrued product warranty costs, end of period

   $ 2,260     $ 3,440  
                

The decrease in the accrued warranty reserve was mainly due to the mobile navigation warranty reserve which declined to $1.2 million at March 31, 2008 from $2.1 million at December 31, 2007 as a result of returns received during the first quarter of 2008.

At March 31, 2008 and 2007, the Company had outstanding inventory purchase orders with suppliers totaling approximately $18.0 million and $35.2 million, respectively. This decrease in purchase commitments reflects improved vendor performance, lower two-way radio demand and the mobile navigation strategy change.

 

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These excerpts taken from the COBR 10-K filed Mar 31, 2008.

(16)  Commitments and Contingencies

The Company is subject to various unresolved legal actions, which arise in the normal course of its business. None of these matters is expected to have a material adverse effect on the Company’s financial position or results of operations. However, the ultimate resolution of these matters can not be determined at this time.

The Company warrants to the consumer who purchases its products that it will repair or replace, without charge, defective products within a specified time period, generally one year. The Company also has a return policy for its customers that allow them to return, to the Company, products returned to them by their customers for full or partial credit based on when the Company’s customer last purchased these products. Consequently, it maintains a warranty reserve, which reflects historical warranty return rates by product category multiplied by the most recent six months of unit sales of that model and the unit standard cost of the model. A roll-forward of the warranty reserve is as follows:

 

     2007     2006     2005  
     (in thousands)  

Accrued product warranty costs, January 1

   $ 1,963     $ 1,618     $ 1,277  

Warranty provision

     4,304       3,873       2,914  

Warranty expenditures

     (2,827 )     (3,528 )     (2,573 )
                        

Accrued product warranty costs, December 31

   $ 3,440     $ 1,963     $ 1,618  
                        

The increase in the accrued warranty reserve from the prior year-end is mainly due to the $1.6 million charge resulting from the Company’s change in its North American mobile navigation strategy.

At December 31, 2007 and 2006, the Company had outstanding inventory purchase orders with suppliers totaling approximately $17.8 million and $27.0 million, respectively.

(16)  Commitments and Contingencies

FACE="Times New Roman" SIZE="2">The Company is subject to various unresolved legal actions, which arise in the normal course of its business. None of these matters is expected to have a material adverse effect on the Company’s financial
position or results of operations. However, the ultimate resolution of these matters can not be determined at this time.

The Company warrants to the
consumer who purchases its products that it will repair or replace, without charge, defective products within a specified time period, generally one year. The Company also has a return policy for its customers that allow them to return, to the
Company, products returned to them by their customers for full or partial credit based on when the Company’s customer last purchased these products. Consequently, it maintains a warranty reserve, which reflects historical warranty return rates
by product category multiplied by the most recent six months of unit sales of that model and the unit standard cost of the model. A roll-forward of the warranty reserve is as follows:

STYLE="font-size:12px;margin-top:0px;margin-bottom:0px"> 






















































































































   2007  2006  2005 
   (in thousands) 

Accrued product warranty costs, January 1

  $1,963  $1,618  $1,277 

Warranty provision

   4,304   3,873   2,914 

Warranty expenditures

   (2,827)  (3,528)  (2,573)
             

Accrued product warranty costs, December 31

  $3,440  $1,963  $1,618 
             

The increase in the accrued warranty reserve from the prior year-end is mainly due to the $1.6 million charge
resulting from the Company’s change in its North American mobile navigation strategy.

At December 31, 2007 and 2006, the Company had outstanding
inventory purchase orders with suppliers totaling approximately $17.8 million and $27.0 million, respectively.

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