Wednesday, February 17, 2016 6:28:14 PM
This information is sure to be in the lawsuit
Maybe this is the reason cities are buying from others
Problems with cables
what will the Q4 issues be????????
http://www.sec.gov/Archives/edgar/data/1342958/000149315215005308/ex99-1.htm
“Our gross margin percentage decreased to 40.0% of revenue in the third quarter of 2015, from 54.9% in the second quarter 2015. This gross margin decline was primarily attributable to the camera cable connector upgrade to our FirstVU HD implemented in the third quarter of 2015 to improve the functionality and reliability of our body-worn cameras. The upgrade caused us to rework our entire installed base of FirstVU HD’s numbering well over 10,000 systems and to scrap a portion of the original cable assembly. This upgrade contributed to total scrap costs approximating $850,000 that affected our third quarter 2015 gross margins. We believe that the FirstVU HD connector upgrade will reduce future warranty and non-warranty repairs and that gross margins should return to more normal levels in future quarters.”
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