8x8 2005 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2005 8x8 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 75

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75

27
• new product introductions by us or our competitors;
• market acceptance of new or existing products;
• the cost and availability of components;
• the mix of our customer base and sales channels;
• the mix of products sold;
• the management of inventory;
• the level of international sales;
• continued compliance with industry standards and regulatory requirements; and
• general economic conditions.
In the likely event that we encounter significant price competition in the markets for our products, we could be at a
significant disadvantage compared to our competitors, many of whom have substantially greater resources, and
therefore may be better able to withstand an extended period of downward pricing pressure. The adverse impact of a
shortfall in our revenues may be magnified by our inability to adjust spending to compensate for such shortfall.
Announcements by our competitors or us of new products and technologies could cause customers to defer
purchases of our existing products, which would also have a material adverse effect on our business and operating
results.
Due to these and other factors, we believe that period-to-period comparisons of our results of operations are not
meaningful and should not be relied upon as indicators of our future performance. It is possible that in some future
periods our results of operations may be below the expectations of public market analysts and investors. If this were
to occur, the price of our common stock would likely decline significantly.
The VoIP telephony market is subject to rapid technological change and we depend on new product and
service introductions in order to maintain and grow our business.
VoIP telephony is an emerging market that is characterized by rapid changes in customer requirements, frequent
introductions of new and enhanced products, and continuing and rapid technological advancement. To compete
successfully in this emerging market, we must continue to design, develop, manufacture, and sell new and enhanced
VoIP telephony software products and services that provide increasingly higher levels of performance and reliability
at lower cost. These new and enhanced products must take advantage of technological advancements and changes,
and respond to new customer requirements. Our success in designing, developing, manufacturing, and selling such
products and services will depend on a variety of factors, including:
• the identification of market demand for new products;
• the scalability of our VoIP telephony software products;
• product and feature selection;
• timely implementation of product design and development;
• product performance;
• cost-effectiveness of current products and services and products under development;
• our ability to successfully implement service features mandated by federal and state law;
• effective manufacturing processes; and
• effectiveness of promotional efforts.