3Ware 2004 Annual Report Download - page 30

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Management’s discussion and analysis of financial condition and results of operations, or MD&A, is
provided as a supplement to the accompanying consolidated financial statements and footnotes to help provide an
understanding of our financial condition, changes in our financial condition and results of our operations. The
MD&A is organized as follows:
•Caution concerning forward-looking statements. This section discusses how forward-looking
statements made by us in the MD&A and elsewhere in this report are based on management’s present
expectations about future events and are inherently susceptible to uncertainty and changes in
circumstances.
•Overview. This section provides an introductory overview and context for the discussion and analysis
that follows in the MD&A.
•Critical accounting policies. This section discusses those accounting policies that are both considered
important to our financial condition and operating results and require significant judgment and estimates
on the part of management in their application.
•Results of operations. This section provides an analysis of our results of operations for the three fiscal
years ended March 31, 2004. A brief description is provided of transactions and events that impact the
comparability of the results being analyzed.
•Financial condition and liquidity. This section provides an analysis of our cash position and cash
flows, as well as a discussion of our financing arrangements and financial commitments.
•Risk factors. This section provides a description of risk factors that could adversely affect our
business, results of operations, or financial condition.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This section should be read in conjunction with the consolidated financial statements and notes thereto
included elsewhere in this report. This discussion contains forward-looking statements. These forward-looking
statements are made as of the date of this report. Any statement that refers to an expectation, projection or other
characterization of future events or circumstances, including the underlying assumptions, is a forward-looking
statement. We use certain words and their derivatives such as “anticipate”, “believe”, “plan”, “expect”,
“estimate”, “predict”, “intend”, “may”, “will”, “should”, “could”, “future”, “potential”, and similar expressions
in many of the forward-looking statements. The forward-looking statements are based on our current
expectations, estimates and projections about our industry, management’s beliefs, and other assumptions made
by us. These statements and the expectations, estimates, projections, beliefs and other assumptions on which they
are based are subject to many risks and uncertainties and are inherently subject to change. We describe many of
the risks and uncertainties that we face in the “Risk Factors” section of MD&A. We update our descriptions of
the risks and uncertainties facing us in our periodic reports filed with the SEC in which we report our financial
condition and results for the quarter and fiscal year-to-date. Our actual results and actual events could differ
materially from those anticipated in any forward-looking statement. Readers should not place undue reliance on
any forward-looking statement.
Overview
We design, develop and market technology products for the communications and storage equipment
markets. Our products are essential for the transport, processing, switching, routing and storage of information
worldwide. We utilize a combination of design expertise coupled with system-level knowledge and multiple
technologies to offer IC products, as well as PCBAs for these markets. We generate revenues in the
communications market primarily through sales of our IC products to communications equipment manufacturers,
such as Alcatel, Ciena, Cisco, Fujitsu, Hitachi, Huawei, JDS Uniphase, Juniper, Lucent, Marconi, NEC, Nortel,
Siemens, and Tellabs. In the storage market, we generate revenues primarily through sales of our HBAs, to
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