AMD 2008 Annual Report Download - page 40

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our existing stockholders. Any sales in the public market by WCH of any shares we issue to WCH could
adversely affect prevailing market prices of our common stock, and the anticipated exercise by WCH of the
warrants we issue to WCH could depress the price of our common stock.
Moreover, the conversion of some or all of the 5.75% Notes and the 6.00% Notes may dilute the ownership
interests of our existing stockholders. The conversion of the 5.75% Notes and the 6.00% Notes could have a
dilutive effect on our earnings per share to the extent that the price of our common stock exceeds the conversion
price of the 5.75% Notes and 6.00% Notes. Any sales in the public market of our common stock issuable upon
conversion of the 5.75% Notes or 6.00% Notes could adversely affect prevailing market prices of our common
stock. In addition, the anticipated conversion of the 5.75% Notes or 6.00% Notes into cash and shares of our
common stock could depress the price of our common stock.
If we are unable to comply with the covenants in the subsidy grant documents that we receive from the
State of Saxony, the Federal Republic of Germany and/or the European Union for Fab 30, Fab 36, Fab 38
or other research and development projects we may undertake in Germany, we may forfeit or have to
repay our subsidies, which could materially adversely affect us.
We receive capital investment grants and allowances and interest subsidies from the State of Saxony and the
Federal Republic of Germany. The subsidy grant documents typically contain covenants that must be complied
with, and noncompliance with the conditions of the grants, allowances and subsidies could result in the forfeiture
of all or a portion of any future amounts to be received, as well as the repayment of all or a portion of amounts
received to date. If we are unable to comply with any of the covenants in the grant documents, we could be
materially adversely affected.
If our products are not compatible with some or all industry-standard software and hardware, we could be
materially adversely affected.
Our products may not be fully compatible with some or all industry-standard software and hardware.
Further, we may be unsuccessful in correcting any such compatibility problems in a timely manner. If our
customers are unable to achieve compatibility with software or hardware after our products are shipped in
volume, we could be materially adversely affected. In addition, the mere announcement of an incompatibility
problem relating to our products could have a material adverse effect on us.
Costs related to defective products could have a material adverse effect on us.
Products as complex as those we offer may contain defects or failures when first introduced or when new
versions or enhancements to existing products are released. We cannot assure you that, despite our testing
procedures, errors will not be found in new products or releases after commencement of commercial shipments
in the future, which could result in loss of or delay in market acceptance of our products, material recall and
replacement costs, delay in recognition or loss of revenues, writing down the inventory of defective products, the
diversion of the attention of our engineering personnel from product development efforts, defending against
litigation related to defective products or related property damage or personal injury, and damage to our
reputation in the industry and could adversely affect our relationships with our customers. In addition, we may
have difficulty identifying the end customers of the defective products in the field. As a result, we could incur
substantial costs to implement modifications to correct defects. Any of these problems could materially adversely
affect us.
In addition, because we sell directly to consumers, we could be subject to potential product liability claims
if one of our products causes, or merely appears to have caused, an injury. Claims may be made by consumers or
others selling our products, and we may be subject to claims against us even if an alleged injury is due to the
actions of others. A product liability claim, recall or other claim with respect to uninsured liabilities or for
amounts in excess of insured liabilities could have a material adverse effect on our business.
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