Tuesday, August 01, 2006

Q2 Conference Call: Mel Comments On NAB Request For Recall Of Products

Regarding the FCC and the FM Modulator issue, on the Q2 earnings conference call, Laraine Mancini of Merrill Lynch asked:

"Also this morning I saw some stuff saying the NAB is now requesting a recall of products that are on the shelf not sold yet for the FM modulation issue. Is there any precedent that the FCC has done anything like this before? Do you think there is a risk of that happening?"

Mel Karmazin answered:

"I mentioned a little bit about the NAB before. There have really been no history of any recalls in that area. As I also mentioned to you, there are very few bona fide complaints regarding any of the interference. It is also our belief that a recall would not be in the public interest at all, especially when we have a variety of other solutions which can be implemented more quickly and without consumer disruption.
So we again think the NAB is rattling its saber, but we continue to believe that there would been nothing served if in fact there was any sort of a recall and we have not heard any of that out of the SAC. The only place we have seen it is really from the NAB."

Link to Transcript: HERE