EMC 2003 Annual Report Download - page 30

The markets in which we compete are characterized by rapid technological change, frequent new product introductions, evolving industry standards and
changing needs of customers. There can be no assurance that our existing products will be properly positioned in the market or that we will be able to
introduce new or enhanced products into the market on a timely basis, or at all. We spend a considerable amount of money on research and development and
introduce new products from time to time. There can be no assurance that enhancements to existing products or new products will receive customer
acceptance. As competition in the IT industry increases, it may become increasingly difficult for us to maintain a technological advantage and to leverage that
advantage toward increased revenues and profits.
Risks associated with the development and introduction of new products include delays in development and changes in data storage, networking and
operating system technologies which could require us to modify existing products. Risks inherent in the transition to new products include:
the difficulty in forecasting customer preferences or demand accurately
the inability to expand production capacity to meet demand for new products
the impact of customers' demand for new products on the products being replaced, thereby causing a decline in sales of existing products and an
excessive, obsolete supply of inventory
delays in initial shipments of new products.
Further risks inherent in new product introductions include the uncertainty of price-performance relative to products of competitors, competitors'
responses to the introductions and the desire by customers to evaluate new products for extended periods of time. Our failure to introduce new or enhanced
products on a timely basis, keep pace with rapid industry, technological or market changes or effectively manage the transitions to new products or new
technologies could have a material adverse effect on our business, results of operations or financial condition.
The markets we serve are highly competitive, and we may be unable to compete effectively.
We compete with many companies in the markets we serve, certain of which offer a broad spectrum of IT products and services and others which offer
specific information storage or management products or services. Some of these companies (whether independently or by establishing alliances) may have
substantially greater financial, marketing and technological resources, larger distribution capabilities, earlier access to customers and greater opportunity to
address customers' various IT requirements than us. We compete on the basis of our products' features, performance and price as well as our services. Our
failure to compete on any of these bases could affect demand for our products or services, which could have a material adverse effect on our business, results
of operations or financial condition.
Companies may develop new technologies or products in advance of us or establish business models or technologies disruptive to us. Our business may
be materially adversely affected by the announcement or introduction of new products, including hardware and software products, and services by our
competitors, and the implementation of effective marketing or sales strategies by our competitors. In addition, as we continue to increase our software and
services businesses, we may face new competitive challenges.
42
We may have difficulty managing operations.
Our future operating results will depend on our overall ability to manage operations, which includes, among other things:
retaining and hiring, as required, the appropriate number of qualified employees
enhancing, as appropriate, our infrastructure, including but not limited to, our information systems
accurately forecasting revenues
training our sales force to sell more software and services
successfully integrating new acquisitions
managing inventory levels, including minimizing excess and obsolete inventory, while maintaining sufficient inventory to meet customer
demands
controlling expenses
managing our manufacturing capacity, real estate facilities and other assets
executing on our plans
An unexpected decline in revenues without a corresponding and timely reduction in expenses or a failure to manage other aspects of our operations could
have a material adverse effect on our business, results of operations or financial condition.
Our business could be materially adversely affected as a result of war or acts of terrorism.
•
•
•
•
•
•
•
•
•
•
•
•
•