3Ware 1999 Annual Report Download - page 24

FACTORS THAT MAY AFFECT FUTURE RESULTS
The Company’s results of operations have varied significantly in the past and may continue to do so in the future. These
variations have been, and may in the future be, due to a number of factors, any of which could have a material adverse effect
on the Company’s business, financial condition and results of operations. These factors include, but are not limited to:
the rescheduling or cancellation of orders by customers; fluctuations in the timing and amount of customer requests for
product shipments; fluctuations in manufacturing yields and inventory levels; changes in product mix; the Company’s ability
to introduce new products and technologies on a timely basis; the introduction of products and technologies by the Company’s
competitors; the availability of external foundry capacity, purchased parts and raw materials; competitive pressures on selling
prices; the timing of investments in research and development; market acceptance of the Company’s and its customers’
products; the integration of operations and personnel as the result of the Company’s recent acquisition of Cimaron; the
timing of depreciation and other expenses to be incurred by the Company in connection with the increase of capacity for its
existing manufacturing facility and in connection with its proposed new manufacturing facility; the timing and amount
of recruiting and relocation expenses, prototyping costs and product promotional expenses; costs associated with future litiga-
tion, if any, including without limitation, litigation relating to the use or ownership of intellectual property; costs
associated with compliance with applicable environmental regulations; general semiconductor industry conditions;
and general economic conditions. Historically, average selling prices in the semiconductor industry have decreased over the life
of a product and, as a result, the average selling prices of the Company’s products may be subject to significant pricing
pressures in the future. Because the Company is continuing to increase its operating expenses for personnel and new product
development, and because the Company is limited in its availability to reduce expenses quickly in response to any revenue
short falls, the Company’s business, financial condition and operating results would be adversely affected if increased sales
are not achieved. In addition, the Company’s operating results may be below the expectations of public market analysts
or investors, which could have a material adverse effect on the market price of the Common Stock.
MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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1999 AMCC