AMD 2009 Annual Report Download - page 35

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materials. For example, in 2009, Qimonda AG, a supplier of memory for our graphics products commenced
insolvency proceedings. If we are unable to procure certain of these materials, or our foundries are unable to
procure materials for manufacturing our products, we would be materially adversely affected.
Our issuance to WCH of warrants to purchase 35,000,000 shares of our common stock, if and when
exercised by WCH, will dilute the ownership interests of our existing stockholders, and the conversion of
the remainder of our 5.75% Notes and 6.00% Notes may dilute the ownership interest of our existing
stockholders.
The warrants issued to WCH became exercisable in July 2009. Any issuance by us of additional shares to
WCH upon exercise of the warrants will dilute the ownership interests of our existing stockholders. Any sales in
the public market by WCH of any shares owned by WCH could adversely affect prevailing market prices of our
common stock, and the anticipated exercise by WCH of the warrants we issued to WCH could depress the price
of our common stock.
Moreover, the conversion of our remaining 5.75% Notes and 6.00% Notes may dilute the ownership
interests of our existing stockholders. The conversion of the 5.75% Notes and the 6.00% Notes could have a
dilutive effect on our earnings per share to the extent that the price of our common stock exceeds the conversion
price of the 5.75% Notes and 6.00% Notes. Any sales in the public market of our common stock issuable upon
conversion of the 5.75% Notes or 6.00% Notes could adversely affect prevailing market prices of our common
stock. In addition, the conversion of the 5.75% Notes or 6.00% Notes into cash and shares of our common stock
could depress the price of our common stock.
If our products are not compatible with some or all industry-standard software and hardware, we could be
materially adversely affected.
Our products may not be fully compatible with some or all industry-standard software and hardware.
Further, we may be unsuccessful in correcting any such compatibility problems in a timely manner. If our
customers are unable to achieve compatibility with software or hardware after our products are shipped in
volume, we could be materially adversely affected. In addition, the mere announcement of an incompatibility
problem relating to our products could have a material adverse effect on us.
Costs related to defective products could have a material adverse effect on us.
Products as complex as those we offer may contain defects or failures when first introduced or when new
versions or enhancements to existing products are released. We cannot assure you that, despite our testing
procedures, errors will not be found in new products or releases after commencement of commercial shipments
in the future, which could result in loss of or delay in market acceptance of our products, material recall and
replacement costs, delay in recognition or loss of revenues, writing down the inventory of defective products, the
diversion of the attention of our engineering personnel from product development efforts, defending against
litigation related to defective products or related property damage or personal injury, and damage to our
reputation in the industry and could adversely affect our relationships with our customers. In addition, we may
have difficulty identifying the end customers of the defective products in the field. As a result, we could incur
substantial costs to implement modifications to correct defects. Any of these problems could materially adversely
affect us.
We could be subject to potential product liability claims if one of our products causes, or merely appears to
have caused, an injury. Claims may be made by consumers or others selling our products, and we may be subject
to claims against us even if an alleged injury is due to the actions of others. A product liability claim, recall or
other claim with respect to uninsured liabilities or for amounts in excess of insured liabilities could have a
material adverse effect on our business.
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