3Ware 2002 Annual Report Download - page 31

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Item 2. PROPERTIES.
Our corporate headquarters are located in San Diego, California. Below is a summary of material properties
leased on March 31, 2002 (net of subleases):
Location
Lease
Expiration
Square
Footage Use
San Diego, California ................... 2007 90,000 Executive offices, sales headquarters, test
and assembly
San Diego, California ................... 2010 58,000 Engineering headquarters
San Diego, California ................... 2003 21,000 Wafer fabrication
Total San Diego, California .......... 169,000
Andover, Massachusetts ................. 2005 78,000 Engineering, sales and marketing
Sunnyvale, California ................... 2005 115,000 Engineering, sales and marketing
Other United States locations ............. Various
dates
through
2005
54,000 Engineering, sales and marketing
Foreign locations ...................... Various
dates
through
2005
30,000 Engineering, sales and marketing
Total facilities ..................... 446,000
In an effort to improve the efficiency of the workforce and reduce our cost structure, we implemented a plan
to consolidate our workforce into certain designated facilities. As a result, approximately 61,000 square feet of
unoccupied properties with non-cancelable lease commitments expiring through fiscal 2005 are excluded from
the above.
We own a parcel of land near our San Diego, California headquarters upon which we constructed a
103,000 square foot facility to be used for long-term corporate growth. We also own 32 acres of land in Poway,
California that does not have any improvements and was purchased as a site for a future corporate campus. There
are no current plans to develop or expand further onto either property.
Our foreign locations consist of the following: Kanata, Canada; Manchester, United Kingdom; Cheshire,
United Kingdom; Munich, Germany; Paris, France; Tokyo, Japan; Shenzhen and Shanghai, People’s Republic of
China; and Netanya, Israel.
Item 3. LEGAL PROCEEDINGS
In April 2001, a series of similar federal complaints were filed against the Company and certain executive
officers and directors of the Company. The complaints have been consolidated into a single proceeding in the
U.S. District Court for the Southern District of California, In re Applied Micro Circuits Corp. Securities
Litigation, lead case number 01-CV-0649-K(AB). In November 2001, the court appointed the lead plaintiff and
lead plaintiff’s counsel in the consolidated proceeding, and plaintiff filed a consolidated federal complaint in
January 2002. The consolidated federal complaint alleges violations of the Securities Exchange Act of 1934 (the
“1934 Act”) and is brought as a purported shareholder class action under Sections 10(b), 20(a) and 20A of the
1934 Act and Rule 10b-5 under the 1934 Act. Plaintiff seeks monetary damages on behalf of the shareholder
class. In general, the consolidated federal complaint alleges that the Company and the individual defendants
misrepresented the Company’s financial prospects for the quarter ending March 31, 2001 to inflate the value of
the Company’s stock. Defendants brought a motion to dismiss the consolidated federal complaint in March 2002.
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