SCKT » Topics » Inventory Valuation

These excerpts taken from the SCKT 10-K filed Mar 16, 2009.

Inventory Valuation

Our inventories primarily consist of component parts used to assemble our products after we receive orders from our customers. We purchase or have manufactured the component parts required by our engineering bill of materials. The timing and quantity of our purchases are based on order forecasts, the lead time requirements of our vendors, and on economic order quantities. At the end of each reporting period, we compare our inventory on hand to our forecasted requirements for the next nine-month period, and write off the cost of any inventory that is surplus, less any amounts that we believe we can recover from disposal of goods that we specifically believe will be saleable past a nine-month horizon. Our sales forecasts are based upon historical trends, communications from customers, and marketing data regarding market trends and dynamics, which we discuss in Item 1, Business. Surplus or obsolete inventory can also be created by changes to our engineering bill of materials. Charges for the amounts we record as surplus or obsolete inventory are included in cost of revenue.

 

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Inventory Valuation


Our inventories primarily consist
of component parts used to assemble our products after we receive orders from
our customers. We purchase or have manufactured the component parts required
by our engineering bill of materials. The timing and quantity of our purchases
are based on order forecasts, the lead time requirements of our vendors, and
on economic order quantities. At the end of each reporting period, we compare
our inventory on hand to our forecasted requirements for the next nine-month
period, and write off the cost of any inventory that is surplus, less any amounts
that we believe we can recover from disposal of goods that we specifically believe
will be saleable past a nine-month horizon. Our sales forecasts are based upon
historical trends, communications from customers, and marketing data regarding
market trends and dynamics, which we discuss in Item 1, Business. Surplus or
obsolete inventory can also be created by changes to our engineering bill of
materials. Charges for the amounts we record as surplus or obsolete inventory
are included in cost of revenue.


 


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of Contents)


These excerpts taken from the SCKT 10-K filed Mar 7, 2008.

Inventory Valuation

Our inventories primarily consist of component parts used to assemble our products after we receive orders from our customers. We purchase or have manufactured the component parts required by our engineering bill of materials. The timing and quantity of our purchases are based on order forecasts, the lead time requirements of our vendors, and on economic order quantities. At the end of each reporting period, we compare our inventory on hand to our forecasted requirements for the next nine-month period, and write off the cost of any inventory that is surplus, less any amounts that we believe we can recover from disposal of goods that we specifically believe will be saleable past a nine-month horizon. Our sales forecasts are based upon historical trends, communications from customers, and marketing data regarding market trends and dynamics, which we discuss in Item 1, Business. Surplus or obsolete inventory can also be created by changes to our engineering bill of materials. Charges for the amounts we record as surplus or obsolete inventory are included in cost of revenue.

 

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(Table of Contents)

Inventory Valuation


Our inventories primarily consist of component parts used to assemble our products
after we receive orders from our customers. We purchase or have manufactured
the component parts required by our engineering bill of materials. The timing
and quantity of our purchases are based on order forecasts, the lead time requirements
of our vendors, and on economic order quantities. At the end of each reporting
period, we compare our inventory on hand to our forecasted requirements for
the next nine-month period, and write off the cost of any inventory that is
surplus, less any amounts that we believe we can recover from disposal of goods
that we specifically believe will be saleable past a nine-month horizon. Our
sales forecasts are based upon historical trends, communications from customers,
and marketing data regarding market trends and dynamics, which we discuss in
Item 1, Business. Surplus or obsolete inventory can also be created by changes
to our engineering bill of materials. Charges for the amounts we record as surplus
or obsolete inventory are included in cost of revenue.


 


29




(Table
of Contents)


This excerpt taken from the SCKT 10-K filed Mar 21, 2007.

Inventory Valuation

Our inventories primarily consist of component parts used to assemble our products after we receive orders from our customers. We purchase or have manufactured the component parts required by our engineering bill of materials. The timing and quantity of our purchases are based on order forecasts, the lead time requirements of our vendors, and on economic order quantities. At the end of each reporting period, we compare our inventory on hand to our forecasted requirements for the next nine-month period, and write off the cost of any inventory that is surplus, less any amounts that we believe we can recover from disposal of goods that we specifically believe will be saleable past a nine-month horizon. Our sales forecasts are based upon historical trends, communications from customers, and marketing data regarding market trends and dynamics, which we discuss in Item 1, Business. Surplus or obsolete inventory can also be created by changes to our engineering bill of materials. Charges for the amounts we record as surplus or obsolete inventory are included in cost of revenue.

This excerpt taken from the SCKT 10-K filed Mar 10, 2006.

Inventory Valuation

Our inventories primarily consist of component parts used to assemble our products after we receive orders from our customers. We purchase or have manufactured the component parts required by our engineering bill of materials. The timing and quantity of our purchases are based on order forecasts, the lead time requirements of our vendors, and on economic order quantities. At the end of each reporting period, we compare our inventory on hand to our forecasted requirements for the next nine-month period, and write off the cost of any inventory that is surplus, less any amounts that we believe we can recover from disposal of goods that we specifically believe will be saleable past a nine-month horizon. Our sales forecasts are based upon historical trends, communications from customers, and marketing data regarding market trends and dynamics, which we discuss in Item 1, Business. Surplus or obsolete inventory can also be created by changes to our engineering bill of materials. Charges for the amounts we record as surplus or obsolete inventory are included in cost of revenue.

This excerpt taken from the SCKT 10-K filed Mar 15, 2005.

Inventory Valuation

Our inventories primarily consist of component parts used to assemble our connection card products after we receive orders from our customers. We purchase the component parts required by our engineering bill of materials. The timing and quantity of our purchases are based on order forecasts, the lead time requirements of our vendors, and on economic order quantities. At the end of each reporting period, we compare our inventory on hand to our forecasted requirements for the next nine month period, and write-off the cost of any inventory that is surplus, less any amounts that we believe we can recover from disposal of goods that we specifically believe will be saleable past a nine month horizon. Our sales forecasts are based upon historical trends, communications from customers, and marketing data regarding market trends and dynamics, which we discuss in Item 1, Business. Surpluses can also be created by changes to our engineering bill of materials. Charges for the amounts we record as surplus or obsolete inventory are included in cost of revenue.

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