Adaptec 2009 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2009 Adaptec annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

• competition and pricing;
• critical accounting policies and estimates;
• customer product inventory levels, needs and order levels;
• demand for networking, storage and consumer equipment;
• net revenues;
• gross profit;
• research and development expenses;
• selling, general and administrative expenses;
• other income (expense), including interest income (expense);
• foreign exchange rates;
• taxation rates and tax provision;
• sources of liquidity and liquidity sufficiency;
• capital resources;
• capital expenditures;
• restructuring activities, expenses and associated annualized savings;
• cash commitments;
• purchase commitments;
• use of cash;
• expectation regarding our amortization of purchased intangible assets; and
• expectations regarding distribution from certain investments.
This Annual Report should be read in conjunction with our periodic filings made with the SEC subsequent
to the date of the original filing, including any amendments to those filings, as well as any current reports filed on
Form 8-K subsequent to the date of the original filing.
I
NDUSTRY
O
VERVIEW
Growth in Internet usage and digital consumer devices continues to drive demand for bandwidth and
efficient networks that can manage high levels of data and video traffic. At the same time, communication
service providers are seeking ways to increase their revenues by bundling and delivering a range of services to
their customers in a cost-effective manner. Applications such as Voice Over Internet Protocol (“VoIP”),
video-on-demand and Internet Protocol Television (“IPTV”) are enabled by advanced technology such as third
generation wireless services, network-attached storage, Fiber-To-The-Home access and Metro Optical Transport
networks. This results in increasing requirements for carriers and enterprises to upgrade and improve their
network infrastructure and storage management capabilities. Enterprises, governments, corporations, small
offices and home offices are expanding their networks to better capture, store and access large quantities of data,
efficiently and securely.
M
ARKETS
T
HAT
W
E
S
ERVE
We sell our semiconductor solutions primarily into two general markets: the Enterprise Infrastructure
market and the Communications Infrastructure market. The products and solutions that we sell into the
Communications infrastructure market are largely driven by the capital spending of service providers in the
4