SanDisk 2008 Annual Report Download - page 31

• changes in, or the particular application of, government regulations;
• duties and/or fees related to customs entries for our products, which are all manufactured offshore;
• longer payment cycles and greater difficulty in accounts receivable collection;
• adverse tax rules and regulations;
• weak protection of our intellectual property rights;
• delays in product shipments due to local customs restrictions; and
• delays in research and development that may arise from political unrest at our development centers in
Israel.
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
financing plans, future announcements concerning us, our competitors or our principal customers regarding
financial results or expectations, technological innovations, industry supply or demand dynamics, new product
introductions, governmental regulations, the commencement or results of 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 as well as the price of our outstanding convertible notes.
We may engage in business combinations 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, subject us to an increased risk of
intellectual property and other litigation 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.
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.
Mergers and acquisitions of high-technology companies are inherently risky and subject to many factors
outside of our control, and no assurance can be given that our previous or future acquisitions will be successful
and will not materially adversely affect our business, operating results, or financial condition. Failure to manage
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