Memorex 2012 Annual Report Download - page 9

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The chart below breaks out our 2012 revenue by segment:
Europe
19%
A
mericas
46%
North Asia
25%
South Asia
10%
During the fourth quarter of 2012, we announced the realignment of our global business into two new business units to
better align the Company with our key commercial and consumer channels. The two business units will consist of Tiered
Storage and Security Solutions (TSS), which will focus on small and medium business, enterprise and government
customers; and Consumer Storage and Accessories (CSA), which will focus on retail channels. The Company continued to
manage and evaluate results through December 31, 2012 under our historic regional segment presentation but will begin
reporting segment information under the new structure beginning with the first quarter of 2013.
See Note 14 — Business Segment Information and Geographic Data in our Notes to Consolidated Financial Statements
for further information regarding our business segments.
Customers, Marketing and Distribution
Our products are sold to businesses and individual consumers. No one customer accounted for 10 percent or more of
our revenue in 2012, 2011 or 2010.
Our products are sold through a combination of distributors, wholesalers, VARs, OEMs and retail outlets. Worldwide,
approximately 39 percent of our 2012 revenue came from distributors, 45 percent came from the retail channel and 16
percent came from OEMs. We maintain a company sales force and a network of distributors and VARs to generate sales of
our products around the world.
Market and Competition
The global market for our products is highly competitive and characterized by continuing changes in technology,
frequent new product introductions and performance improvements, diverse distribution channels, aggressive marketing and
pricing practices and ongoing variable price erosion. Competition is based on a multitude of factors, including product design,
brand strength, distribution presence and capability, channel knowledge and expertise, geographic availability, breadth of
product line, product cost, media capacity, access speed and performance, durability, reliability, scalability and compatibility.
Our primary competitors in recordable optical media include Maxell, JVC, Sony and Verbatim brands. Our primary
competitors in magnetic tape media include Fuji, Sony, Maxell and HP brands. Our primary competitors in mobile security
products include Kingston, Spyrus, Apricorn and Rocstor. In standard flash media our primary competitors include Kingston,
SanDisk, Lexar and PNY. Western Digital and Seagate are our primary competitors in standard external and removable hard
drives. These companies generally compete with us in all our regional business segments. While the parent companies that
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