iRobot 2010 Annual Report Download - page 69

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• difficulties in enforcing agreements and collecting receivables through foreign legal systems and other
relevant legal issues;
• fewer legal protections for intellectual property;
• foreign and U.S. taxation issues, tariffs, and international trade barriers;
• difficulties in obtaining any necessary governmental authorizations for the export of our products to certain
foreign jurisdictions;
• potential fluctuations in foreign economies;
• government currency control and restrictions on repatriation of earnings;
• fluctuations in the value of foreign currencies and interest rates;
• general economic and political conditions in the markets in which we operate;
• domestic and international economic or political changes, hostilities and other disruptions in regions where
we currently operate or may operate in the future;
• changes in foreign currency exchange rates;
• different and changing legal and regulatory requirements in the jurisdictions in which we currently operate
or may operate in the future; and
• outside of the United States, we primarily rely on a network of exclusive distributors, some of whom may be
operating without written contracts.
Negative developments in any of these areas in one or more countries could result in a reduction in demand for
our products, the cancellation or delay of orders already placed, threats to our intellectual property, difficulty in
collecting receivables, and a higher cost of doing business, any of which could negatively impact our business,
financial condition or results of operations. Moreover, our sales, including sales to customers outside the United
States, are primarily denominated in U.S. dollars, and downward fluctuations in the value of foreign currencies
relative to the U.S. dollar may make our products more expensive than other products, which could harm our
business.
If we experience a disaster or other business continuity problem, we may not be able to recover
successfully, which could cause material financial loss, loss of human capital, regulatory actions,
reputational harm, or legal liability.
If we experience a local or regional disaster or other business continuity problem, such as an earthquake,
terrorist attack, pandemic or other natural or man-made disaster, our continued success will depend, in part, on the
availability of our personnel, our office facilities, and the proper functioning of our computer, telecommunication
and other related systems and operations. As we grow our operations in new geographic regions, the potential for
particular types of natural or man-made disasters, political, economic or infrastructure instabilities, or other
country- or region-specific business continuity risks increases.
If we suffer any data breaches involving the designs, schematics or source code for our products, our
business and financial results could be adversely affected.
We attempt to securely store our designs, schematics and source code for our products as they are created.
A breach, whether physical, electronic or otherwise, of the systems on which this sensitive data is stored could lead
to damage or piracy of our products. If we are subject to data security breaches, we may have a loss in sales or
increased costs arising from the restoration or implementation of additional security measures, either of which
could materially and adversely affect our business and financial results.
23
Form 10-K