Netgear 2012 Annual Report Download - page 14

Table of Contents
Investing in our common stock involves a high degree of risk. The risks described
below are not exhaustive of the risks that might affect our
business. Other risks, including those we currently deem immaterial, may also impact our business. Any of
the following risks could materially
adversely affect our business operations, results of operations and financial condition and could result in a significant
decline in our stock price.
Before deciding to purchase, hold or sell our common stock, you should carefully consider the risks described in this section. This section should be
read in conjunction with the consolidated financial statements and accompanying notes thereto, and Management's Discussion and Analysis of
Financial Condition and Results of Operations included in this Annual Report on Form 10
-K.
We expect our operating results to fluctuate on a quarterly and annual basis, which could cause our stock price to fluctuate or decline.
Our operating results are difficult to predict and may fluctuate substantially from quarter-to-quarter or year-to-
year for a variety of reasons,
many of which are beyond our control. If our actual results were to fall below our estimates or the expectations of public market analysts or investors,
our quarterly and annual results would be negatively impacted and the price of our stock could decline. Other factors that could affect our quarterly
and annual operating results include those listed in the risk factors section of this report and others such as:
10
Item 1A. Risk Factors
•
changes in the pricing policies of or the introduction of new products by us or our competitors;
•
unanticipated shift or decline in profit by geographical region that would adversely impact our tax rate;
•
slow or negative growth in the networking product, personal computer, Internet infrastructure, home electronics and related technology
markets, as well as decreased demand for Internet access;
•
operational disruptions, such as transportation delays or failure of our order processing system, particularly if they occur at the end of a
fiscal quarter;
•
geopolitical disruption leading to delay or even stoppage of our operations in manufacturing, transportation, technical support and
research and development;
•
delay or failure of our service provider customers to purchase at the volumes that they forecast;
•
foreign currency exchange rate fluctuations in the jurisdictions where we transact sales and expenditures in local currency;
•
changes in or consolidation of our sales channels and wholesale distributor relationships or failure to manage our sales channel inventory
and warehousing requirements;
•
delay or failure to fulfill orders for our products on a timely basis;
•
allowance for bad debts exposure with our existing customers and new customers, particularly as we expand into new international
markets;
•
disruptions or delays related to our financial and enterprise resource planning systems;
•
our inability to accurately forecast product demand;
•
component supply constraints from our vendors;
•
unfavorable level of inventory and turns;
•
shift in overall product mix sales from higher to lower margin products, or from one business unit to another, that would adversely impact
our margins;
•
terms of our contracts with customers or suppliers that cause us to incur additional expenses or assume additional liabilities;