Creative 2000 Annual Report Download - page 8

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
Creative’s operating results in the past, and may in the future, be affected by various risk factors, many of which are beyond
Creative’s control. Except for the historical information contained herein, the matters set forth herein (including statements
using the words or phrases “will”, “we believe will”, “going to”, “anticipate”, “plan”, or other similar words or phrases, and
including any guidance on future products, future marketing efforts, and future revenues, margins, expenses, and earnings)
are forward-looking statements that are subject to certain assumptions, risks and uncertainties that could cause actual results
to differ materially from those set forth in the forward looking statements. Such assumptions, risks and uncertainties include,
among others: potential fluctuations in the value and liquidity of Creative’s investee companies; the timing or completion
of a subsidiary IPO and/or the valuation that would apply in the event of a consummation of a subsidiary IPO; potential
fluctuations in quarterly results due to the seasonality of Creative’s business and the difficulty of projecting such fluctuations;
the vulnerability of Creative’s results of operations and cash flows to credit shortages and current and future fluctuations in
currency exchange rates in general and current and future fluctuations in exchange rate of the Euro in particular; reductions
in the market value of products sold by Creative, including increases in supply or declines in demand or prices for optical
storage devices, board and chip-level products, and software products; the short product cycles that characterize most of
Creative’s products; the increasing proliferation of sound functionality in new products from new and existing competitors
and at the application software, chip and operating system levels; the increasing assertion of patents rights and other claims
against or affecting Creative and/or its suppliers, in areas including 3-D graphics and audio chip designs; Creative’s reliance
on sole sources or near-sole sources for many of its chips and other key components of the quality required for use and possible
limitations on future availability of graphic chips, memory chips, and passive components used in Creative’s products; the
timely development, ramp, delivery and market acceptance of new products, including Creative’s next generation audio,
graphics accelerator, CD-RW, CD-ROM and DVD drives, communications and personal digital entertainment products; the
volatility of share prices for companies in Creative’s industry and the effect of those prices or other events beyond Creative’s
control; the uncertainties inherent in identifying and correcting all issues in computer codes used by Creative and its
suppliers and vendors; and other risk factors described in Creative’s Annual Report on Form 20-F for fiscal 2000 filed with
the US Securities and Exchange Commission. You are urged to carefully consider these factors as well as other information
contained in the Form F-20 and in Creative’s other periodic reports and documents filed with the SEC. Creative undertakes
no obligation to publicly release the results of any revisions to such forward-looking statements which may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.