Adaptec 2005 Annual Report Download - page 20
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Table of Contents
EMPLOYEES
As of December 30, 2007, we had 1,027 employees, including 585 in Research and Development, 97 in Production and Quality Assurance, 214 in Sales and
Marketing and 131 in Administration. Our employees are not represented by a collective bargaining agreement and we have never experienced any related work
stoppage.
ITEM 1A. Risk Factors.
Our company is subject to a number of risks – some are normal to the fabless semiconductor industry, some are the same or similar to those disclosed in
previous SEC filings, and some may be present in the future. You should carefully consider all of these risks and the other information in this report before
investing in PMC. The fact that certain risks are endemic to the industry does not lessen the significance of the risk.
As a result of the following risks, our business, financial condition, operating results and/or liquidity could be materially adversely affected. This could cause the
trading price of our securities to decline, and you may lose part or all of your investment.
We are subject to rapid changes in demand for our products due to:
• variations in our turns business;
• short order lead time;
• customer inventory levels;
• production schedules; and
• fluctuations in demand.
Our revenues and profits may fluctuate because of factors that are beyond our control. As a result, we may fail to meet the expectations of security
analysts and investors, which could cause our stock price to decline.
Our ability to project revenues is limited because a significant portion of our quarterly revenues may be derived from orders placed and shipped in the
same quarter, which we call our “turns business.” Our turns business varies widely from quarter to quarter. Our customers may delay product orders and reduce
delivery lead-time expectations, which may reduce our ability to project revenues beyond the current quarter. While we regularly evaluate end users’ and contract
manufacturers’ inventory levels of our products to assess the impact of their inventories on our projected turns business, we do not have complete information on
their inventories. This could cause our projections of a quarter’s turns business to be inaccurate, leading to lower revenues than projected.
We may fail to meet our forecasts if our customers cancel or delay the purchase of our products or if we are unable to meet their demand.
We rely on customer forecasts in order to estimate the appropriate levels of inventory to build and to project our future revenues. Many of our customers
have numerous product lines, numerous component requirements for each product, sizeable and complex supplier structures, and typically engage contract
manufacturers for additional manufacturing capacity. This complex supply chain creates several variables that make it complicated to accurately forecast
14
Source: PMC SIERRA INC, 10-K, February 22, 2008