MOT » Topics » Inventory, Raw Materials, Right of Return and Seasonality

These excerpts taken from the MOT 10-K filed Feb 26, 2009.
Inventory, Raw Materials, Right of Return and Seasonality
 
The segment’s practice is to carry reasonable amounts of inventory in manufacturing and distribution centers in order to meet customer delivery requirements in a manner consistent with industry standards. At the end of


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2008, the segment had a lower inventory balance than at the end of 2007. The decrease reflects the continued decline in sales volumes during 2008.
 
Availability of materials and components required by the segment is relatively dependable, but fluctuations in supply and market demand could cause selective shortages and affect results. We currently source certain materials and components from single vendors. Any material disruption from a single-source vendor may have a material adverse impact on our results of operations. If certain key suppliers were to become capacity constrained or insolvent as a result of the ongoing global financial crisis, it could result in a reduction or interruption in supplies or an increase in the price of supplies and adversely impact the segment’s financial results.
 
Natural gas, electricity, and, to a lesser extent, oil are the primary sources of energy required for the segment’s manufacturing operations. Each of these resources are currently in generally adequate supply for the segment’s operations. In addition, the cost to operate our facilities and freight costs are dependent on world oil prices, which fluctuated significantly during 2008 and impacted our manufacturing and shipping costs. Labor is generally available in reasonable proximity to the segment’s manufacturing facilities. However, difficulties in obtaining any of the aforementioned items or a significant cost increase could affect the segment’s results.
 
The segment permits returns under limited circumstances to remain competitive with current industry practices.
 
The segment typically experiences higher sales in the fourth calendar quarter and lower sales in the first calendar quarter of each year due to seasonal trends in the wireless handset industry.
 
Inventory,
Raw Materials, Right of Return and Seasonality



 



The segment’s practice is to carry reasonable amounts of
inventory in manufacturing and distribution centers in order to
meet customer delivery requirements in a manner consistent with
industry standards. At the end of








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5




2008, the segment had a lower inventory balance than at the end
of 2007. The decrease reflects the continued decline in sales
volumes during 2008.


 



Availability of materials and components required by the segment
is relatively dependable, but fluctuations in supply and market
demand could cause selective shortages and affect results. We
currently source certain materials and components from single
vendors. Any material disruption from a single-source vendor may
have a material adverse impact on our results of operations. If
certain key suppliers were to become capacity constrained or
insolvent as a result of the ongoing global financial crisis, it
could result in a reduction or interruption in supplies or an
increase in the price of supplies and adversely impact the
segment’s financial results.


 



Natural gas, electricity, and, to a lesser extent, oil are the
primary sources of energy required for the segment’s
manufacturing operations. Each of these resources are currently
in generally adequate supply for the segment’s operations.
In addition, the cost to operate our facilities and freight
costs are dependent on world oil prices, which fluctuated
significantly during 2008 and impacted our manufacturing and
shipping costs. Labor is generally available in reasonable
proximity to the segment’s manufacturing facilities.
However, difficulties in obtaining any of the aforementioned
items or a significant cost increase could affect the
segment’s results.


 



The segment permits returns under limited circumstances to
remain competitive with current industry practices.


 



The segment typically experiences higher sales in the fourth
calendar quarter and lower sales in the first calendar quarter
of each year due to seasonal trends in the wireless handset
industry.


 




Inventory, Raw Materials, Right of Return and Seasonality
 
The segment’s practice is to carry reasonable amounts of inventory in order to meet customer delivery requirements in a manner consistent with industry standards. At the end of 2008, the segment had higher inventory balances than at the end of 2007, primarily due to a change in manufacturing strategy to increase in-house manufacturing and reduce outsourced manufacturing by third-party providers.
 
Availability of materials and components required by the segment is relatively dependable, but fluctuations in supply and market demand could cause selective shortages and affect results. We currently procure certain materials and components from single-source vendors. Any material disruption from a single-source vendor may have a material adverse impact on our results of operations. If certain key suppliers were to become capacity constrained or insolvent as a result of the ongoing global financial crisis, it could result in a reduction or interruption in supplies or an increase in the price of supplies and adversely impact the segment’s financial results.
 
Natural gas, electricity, and, to a lesser extent, oil are the primary sources of energy required for our manufacturing operations. Each of these resources are currently in generally adequate supply for the segment’s operations. In addition, the cost to operate our facilities and freight costs are dependent on world oil prices, which fluctuated significantly during 2008 and impacted our manufacturing and shipping costs. Labor is generally available in reasonable proximity to the segment’s manufacturing facilities. However, difficulties in obtaining any of the aforementioned items or a significant cost increase could affect the segment’s results.
 
Generally, we do not permit customers to return products, other than under standard warranty provisions. The segment has not experienced seasonal buying patterns for its products.
 
Inventory,
Raw Materials, Right of Return and Seasonality



 



The segment’s practice is to carry reasonable amounts of
inventory in order to meet customer delivery requirements in a
manner consistent with industry standards. At the end of 2008,
the segment had higher inventory balances than at the end of
2007, primarily due to a change in manufacturing strategy to
increase in-house manufacturing and reduce outsourced
manufacturing by third-party providers.


 



Availability of materials and components required by the segment
is relatively dependable, but fluctuations in supply and market
demand could cause selective shortages and affect results. We
currently procure certain materials and components from
single-source
vendors. Any material disruption from a single-source vendor may
have a material adverse impact on our results of operations. If
certain key suppliers were to become capacity constrained or
insolvent as a result of the ongoing global financial crisis, it
could result in a reduction or interruption in supplies or an
increase in the price of supplies and adversely impact the
segment’s financial results.


 



Natural gas, electricity, and, to a lesser extent, oil are the
primary sources of energy required for our manufacturing
operations. Each of these resources are currently in generally
adequate supply for the segment’s operations. In addition,
the cost to operate our facilities and freight costs are
dependent on world oil prices, which fluctuated significantly
during 2008 and impacted our manufacturing and shipping costs.
Labor is generally available in reasonable proximity to the
segment’s manufacturing facilities. However, difficulties
in obtaining any of the aforementioned items or a significant
cost increase could affect the segment’s results.


 



Generally, we do not permit customers to return products, other
than under standard warranty provisions. The segment has not
experienced seasonal buying patterns for its products.


 




Inventory, Raw Materials, Right of Return and Seasonality
 
The segment’s practice is to carry reasonable amounts of inventory to meet customers’ delivery requirements in a manner consistent with industry standards. The segment provides custom products which requires the stocking of inventories and large varieties of piece parts and replacement parts in order to meet delivery and warranty requirements. To the extent suppliers’ product life cycles are shorter than the segment’s, stocking of lifetime buy inventories is required to meet long-term warranty and contractual requirements. In addition, replacement parts are stocked for delivery on customer demand within a short delivery cycle. At the end of 2008, the segment had a higher inventory balance than at the end of 2007, primarily as a result of the Company acquiring a controlling interest in Vertex Standard Co, Ltd., in January 2008.
 
Availability of materials and components required by the segment is relatively dependable, but fluctuations in supply and market demand could cause selective shortages and affect results. We currently procure certain materials and components from single-source vendors. A material disruption from a single-source vendor may have a material adverse impact on our results of operations. If certain key suppliers were to become capacity constrained or insolvent as a result of the ongoing global financial crisis, it could result in a reduction or interruption in supplies or an increase in the price of supplies and adversely impact the segment’s financial results.
 
Natural gas, electricity and, to a lesser extent, oil are the primary sources of energy for our manufacturing operations, which are currently in adequate supply. In addition, the cost to operate our facilities and freight costs are dependent on world oil prices, which fluctuated significantly during 2008 and impacted our manufacturing and shipping costs. Labor is generally available in reasonable proximity to the segment’s manufacturing facilities. However, difficulties in obtaining any of these items or a significant cost increase could affect the segment’s results.
 
Generally, the segment’s contracts do not include a right of return, other than for standard warranty provisions. For new product introductions in our government and public safety market, we may enter into milestone contracts providing that the product could be returned if we do not achieve the milestones. Due to buying patterns in the markets we serve, sales tend to be somewhat higher in the fourth quarter.
 
Inventory,
Raw Materials, Right of Return and Seasonality



 



The segment’s practice is to carry reasonable amounts of
inventory to meet customers’ delivery requirements in a
manner consistent with industry standards. The segment provides
custom products which requires the stocking of inventories and
large varieties of piece parts and replacement parts in order to
meet delivery and warranty requirements. To the extent
suppliers’ product life cycles are shorter than the
segment’s, stocking of lifetime buy inventories is required
to meet long-term warranty and contractual requirements. In
addition, replacement parts are stocked for delivery on customer
demand within a short delivery cycle. At the end of 2008, the
segment had a higher inventory balance than at the end of 2007,
primarily as a result of the Company acquiring a controlling
interest in Vertex Standard Co, Ltd., in January 2008.


 



Availability of materials and components required by the segment
is relatively dependable, but fluctuations in supply and market
demand could cause selective shortages and affect results. We
currently procure certain materials and components from
single-source vendors. A material disruption from a
single-source vendor may have a material adverse impact on our
results of operations. If certain key suppliers were to become
capacity constrained or insolvent as a result of the ongoing
global financial crisis, it could result in a reduction or
interruption in supplies or an increase in the price of supplies
and adversely impact the segment’s financial results.


 



Natural gas, electricity and, to a lesser extent, oil are the
primary sources of energy for our manufacturing operations,
which are currently in adequate supply. In addition, the cost to
operate our facilities and freight costs are dependent on world
oil prices, which fluctuated significantly during 2008 and
impacted our manufacturing and shipping costs. Labor is
generally available in reasonable proximity to the
segment’s manufacturing facilities. However, difficulties
in obtaining any of these items or a significant cost increase
could affect the segment’s results.


 



Generally, the segment’s contracts do not include a right
of return, other than for standard warranty provisions. For new
product introductions in our government and public safety
market, we may enter into milestone contracts providing that the
product could be returned if we do not achieve the milestones.
Due to buying patterns in the markets we serve, sales tend to be
somewhat higher in the fourth quarter.


 




These excerpts taken from the MOT 10-K filed Feb 28, 2008.
Inventory, Raw Materials, Right of Return and Seasonality
 
The segment’s practice is to carry reasonable amounts of inventory to meet customers’ delivery requirements in a manner consistent with industry standards. The segment provides custom products which requires the stocking of inventories and large varieties of piece parts and replacement parts in order to meet delivery and warranty requirements. To the extent suppliers’ product life cycles are shorter than the segment’s, stocking of lifetime buy


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15

inventories is required to meet long-term warranty and contractual requirements. In addition, replacement parts are stocked for delivery on customer demand within a short delivery cycle. At the end of 2007, the segment had a higher inventory balance than at the end of 2006, primarily as a result of the acquisition of Symbol during 2007.
 
Availability of materials and components required by the segment is relatively dependable, but fluctuations in supply and market demand could cause selective shortages and affect results. We currently source certain materials and components from single vendors. Any material disruption from a single-source vendor may have a material adverse impact on our results of operations.
 
Natural gas, electricity and, to a lesser extent, oil are the primary sources of energy for the segment’s operations, which are currently in generally adequate supply for the segment’s operations. In addition, the cost to operate our facilities and freight costs are dependent on world oil prices, which increased significantly during 2007 and increased our manufacturing and shipping costs. Labor is generally available in reasonable proximity to the segment’s manufacturing facilities. However, difficulties in obtaining any of these items or a significant cost increase could affect the segment’s results.
 
Generally, the segment’s contracts do not include a right of return, other than for standard warranty provisions. For new product introductions in our government and public safety market, we may enter into milestone contracts providing that the product could be returned if we do not achieve the milestones. Due to buying patterns in the markets we serve, sales tend to be somewhat higher in the fourth quarter.
 
Inventory,
Raw Materials, Right of Return and Seasonality



 



The segment’s practice is to carry reasonable amounts of
inventory to meet customers’ delivery requirements in a
manner consistent with industry standards. The segment provides
custom products which requires the stocking of inventories and
large varieties of piece parts and replacement parts in order to
meet delivery and warranty requirements. To the extent
suppliers’ product life cycles are shorter than the
segment’s, stocking of lifetime buy





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15




inventories is required to meet long-term warranty and
contractual requirements. In addition, replacement parts are
stocked for delivery on customer demand within a short delivery
cycle. At the end of 2007, the segment had a higher inventory
balance than at the end of 2006, primarily as a result of the
acquisition of Symbol during 2007.


 



Availability of materials and components required by the segment
is relatively dependable, but fluctuations in supply and market
demand could cause selective shortages and affect results. We
currently source certain materials and components from single
vendors. Any material disruption from a single-source vendor may
have a material adverse impact on our results of operations.


 



Natural gas, electricity and, to a lesser extent, oil are the
primary sources of energy for the segment’s operations,
which are currently in generally adequate supply for the
segment’s operations. In addition, the cost to operate our
facilities and freight costs are dependent on world oil prices,
which increased significantly during 2007 and increased our
manufacturing and shipping costs. Labor is generally available
in reasonable proximity to the segment’s manufacturing
facilities. However, difficulties in obtaining any of these
items or a significant cost increase could affect the
segment’s results.


 



Generally, the segment’s contracts do not include a right
of return, other than for standard warranty provisions. For new
product introductions in our government and public safety
market, we may enter into milestone contracts providing that the
product could be returned if we do not achieve the milestones.
Due to buying patterns in the markets we serve, sales tend to be
somewhat higher in the fourth quarter.


 




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