Jabil Helps Cardo Systems Set New Standard in Helmet Communication Systems

Jabil (NYSE: JBL) today announced an innovative manufacturing collaboration with Cardo Systems, a pioneer in wireless group communications and entertainment systems for motorcycle riders. Cardo's path to market leadership has been fueled by Jabil's world-class manufacturing capabilities, acoustics experience, global supply chain expertise and dedicated Workcell model, which enables Cardo to ship more than one million devices yearly to customers in more than 100 countries.

"We thrive on an endless desire to deliver state-of-the-art wireless communications and entertainment systems," said Alon Lumbroso, CEO of Cardo Systems. "We always look for quality, on-time delivery and cost from our manufacturing partner. Equally important is flexibility. Jabil has kept up with dramatic market changes, especially over the past two years, which is a very big advantage."

Since its inception in 2004, Cardo Systems has enhanced motorcycle communications with Bluetooth connectivity, mesh technology, wind-suppressing capabilities and natural language control. The company's PACKTALK product uses dynamic mesh communications to connect up to 15 riders over a one-mile range while a version for skiers and snowboarders provides an always-on intercom for improved interaction and safety on the slopes.

Shared Commitment to Quality

Achieving the best possible audio sound requires fastidious attention to detail in product design and manufacturing. Jabil's deep-rooted experience in acoustics has increased manufacturing yields and supported high-fidelity sound performance. Additionally, an unrelenting focus on quality and the use of automated test equipment contributes to Cardo's approximately 1% warranty-period failure rate across its extensive product line. Since 2019, Cardo has experienced zero to two quality events per quarter, which is a strong indicator of product stability and reliability.

Jabil also proved instrumental in helping Cardo Systems transition its products to volume manufacturing by reducing its Stock Keeping Units (SKUs) from hundreds to tens while decreasing the number of Engineering Change Notices (ECNs), which can slow production and increase costs. Regular refinements to industrial product designs, along with improved packaging, were completed with a steadfast focus on reducing costs across product lifecycles.

"Our ability to deliver consistent, quality performance was really valuable to Cardo as they began scaling sales of their products," said Scott Gebicke, president, Jabil Industrial. "We met all the standards for a premium product that gets to customers on time and works as advertised. Jabil also provides a lot of supply chain leverage, as well as the opportunity to use different materials and components to evolve Cardo Systems' products more cost effectively."

Accelerating Growth and Market Expansion

As Europe represents Cardo's largest market, its products are manufactured at Jabil's Ukraine facility, which minimizes lead times. A team of experts at Cardo facilitates fast, agile responses to dynamic market demands, which proved essential during pandemic-related disruptions. Cardo was able to mitigate risks in terms of supply constraints and logistics costs by leveraging Jabil's manufacturing facility in Eastern Europe, as well as its established network of suppliers.

Looking ahead, Jabil is working with Cardo Systems to extend the reach of its innovative products across Europe, the U.S., Asia and Latin America. For example, Jabil helped Cardo ramp manufacturing for U.S. customers when the company began selling online through Amazon. Jabil also is helping expand Cardo's APAC manufacturing presence while getting involved earlier in product prototyping to support a move into new active lifestyle markets, including skiing and snowboarding, as well as professional sports.

Supporting Quotes and Resources

• Shlomo Ehrlich, vice president of operations, Cardo Systems:
  "We experienced 5X year-over-year growth during the past five years. That's hard to do unless you have someone like Jabil that lets you run as fast as you can. As an infinite capacity manufacturer, Jabil is a major growth accelerant."
• Jerry Harmer, senior business unit director, Jabil:
  "Since day one, Cardo has had aggressive growth goals and we have been right there to support them each step of the way. We're working with Cardo on new design projects that will help them enter new markets and increase their business dramatically."
• Natalya Markovic, senior business unit manager, Jabil:
  "Strong Jabil supply chain expertise and general connections to suppliers allow us to make predictions to prevent disruptions in deliveries and keep production running, which was especially important during the COVID-19 pandemic."
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About Jabil:

Jabil (NYSE: JBL) is a manufacturing solutions provider with over 260,000 employees across 100 locations in 30 countries. The world's leading brands rely on Jabil's unmatched breadth and depth of end-market experience, technical and design capabilities, manufacturing know-how, supply chain insights and global product management expertise. Driven by a common purpose, Jabil and its people are committed to making a positive impact on their local community and the environment. Visit www.jabil.com to learn more.