3Ware 2003 Annual Report Download - page 16

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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, 2003 (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
Total San Diego, California .... 148,000
Andover, Massachusetts ........... 2005 73,000 Engineering, sales and marketing
Sunnyvale, California ............. 2005 115,000 Engineering, sales and marketing
Other United States locations .......
Various
dates
through
2005 58,000 Engineering, sales and marketing applications
Foreign locations ................
Various
dates
through
2005 30,000 Engineering, sales and marketing applications
Total facilities ............... 424,000
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 19,000 square feet of
unoccupied properties with non-cancelable lease commitments expiring through fiscal 2005 have been excluded
from the above summary. We plan to vacate approximately 96,000 square feet of leased properties in fiscal 2004
with non-cancelable lease commitments expiring through 2010.
We own 32 acres of undeveloped land in Poway, California. We have an agreement to sell this land in fiscal
2004 and are currently in escrow.
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 us and certain of our executive
officers and directors. 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 alleged violations of the Securities Exchange Act of 1934 (the “1934 Act”) and was 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 sought monetary damages on behalf of the shareholder class. Defendants brought a motion
to dismiss the consolidated federal complaint in March 2002. On May 9, 2002, the court granted the motion,
dismissing the complaint, but giving plaintiff 45 days to file an amended complaint. On June 23, 2002, plaintiff
filed an amended consolidated complaint. In general, the amended consolidated federal complaint alleges that we
and the individual defendants misrepresented our financial prospects for the quarters ended December 31, 2000
and March 30, 2001, in order to inflate the value of our stock. Defendants brought a motion to dismiss the
amended consolidated complaint, which motion was denied in October 2002. Discovery in this matter has
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