SanDisk 2004 Annual Report Download - page 41

Table of Contents
Our stock price has been, and may continue to be, volatile, which could result in investors losing all or part of their investments.
The market price of our stock has fluctuated significantly in the past and may continue to fluctuate in the future. We believe that such
fluctuations will continue as a result of many factors, including future announcements concerning us, our competitors or principal
customers regarding financial results, technological innovations, new product introductions, governmental regulations, litigation or
changes in earnings estimates by analysts. In addition, in recent years the stock market has experienced significant price and volume
fluctuations and the market prices of the securities of high technology and semiconductor companies have been especially volatile,
often for reasons outside the control of the particular companies. These fluctuations as well as general economic, political and market
conditions may have an adverse affect on the market price of our common stock.
We may make acquisitions that are dilutive to existing stockholders, result in unanticipated accounting charges or otherwise
adversely affect our results of operations, and result in difficulties in assimilating and integrating the operations, personnel,
technologies, products and information systems of acquired companies or businesses. We continually evaluate and explore strategic
opportunities as they arise, including business combinations, strategic partnerships, collaborations, capital investments and the
purchase, licensing or sale of assets. If we issue equity securities in connection with an acquisition, the issuance may be dilutive to our
existing stockholders. Alternatively, acquisitions made entirely or partially for cash would reduce our cash reserves.
Acquisitions may require significant capital infusions, typically entail many risks and could result in difficulties in assimilating
and integrating the operations, personnel, technologies, products and information systems of acquired companies. We may experience
delays in the timing and successful integration of acquired technologies and product development through volume production,
unanticipated costs and expenditures, changing relationships with customers, suppliers and strategic partners, or contractual,
intellectual property or employment issues. In addition, key personnel of an acquired company may decide not to work for us. The
acquisition of another company or its products and technologies may also result in our entering into a geographic or business market
in which we have little or no prior experience. These challenges could disrupt our ongoing business, distract our management and
employees, harm our reputation and increase our expenses. These challenges are magnified as the size of the acquisition increases, and
we cannot assure you that we will realize the intended benefits of any acquisition. Furthermore, acquisitions may require large
one−time charges and can result in increased debt or contingent liabilities, adverse tax consequences, substantial depreciation or
deferred compensation charges, the amortization of identifiable purchased intangible assets or impairment of goodwill, any of which
could have a material adverse effect on our business, financial condition or results of operations.
Our success depends on key personnel, including our executive officers, the loss of whom could disrupt our business. Our success
greatly depends on the continued contributions of our senior management and other key research and development, sales, marketing
and operations personnel, including Dr. Eli Harari, our founder, president and chief executive officer. We do not have employment
agreements with any of our executive officers and they are free to terminate their employment with us at any time. Our success will
also depend on our ability to recruit additional highly skilled personnel. We cannot assure you that we will be successful in hiring or
retaining key personnel, or that any of our key personnel will remain employed with us.
We expect to raise additional financing, which could be difficult to obtain, and which if not obtained in satisfactory amounts may
prevent us from increasing our wafer supply, developing or enhancing our products, taking advantage of future opportunities,
growing our business or responding to competitive pressures or unanticipated industry changes, any of which could harm our
business. We currently believe that we have sufficient cash resources to fund our operations as well as our investments in Flash
Partners and FlashVision for at least the next twelve months, however, we expect to raise additional funds, including funds to meet our
obligations with respect to Flash Partners and we cannot be certain that we will be able to obtain additional financing on favorable
terms, if at all. From time−to−time, we may decide to raise additional funds through public or private debt, equity or lease financings.
If we issue additional equity securities, our stockholders will experience dilution and the new equity securities may have rights,
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