Adaptec 2011 Annual Report Download - page 12

Table of Contents
furnish such material with the Securities and Exchange Commission ("SEC"). The public may read and copy any materials we file with the SEC at the SEC's
Public Reference Room at 100F Street, NE., Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by
calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site at http://www.sec.gov that contains reports, proxy and information statements, and
other information regarding issuers that file electronically with the SEC.
ITEM 1A. RISK FACTORS.
Our company is subject to a number of risks – some are normal for 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.
Our global growth is subject to a number of economic risks.
We conduct business throughout the world, including in Asia, North America, Europe and the Middle East. Instability in the global credit markets,
including the recent European economic and financial turmoil related to sovereign debt issues in certain countries, the instability in the geopolitical
environment in many parts of the world and other disruptions, such as changes in energy costs, may continue to put pressure on global economic conditions.
The world has recently experienced a global macroeconomic downturn, To the extent global economic and market conditions, or economic conditions in key
markets, remain uncertain or deteriorate further, business, operating results, and financial condition may be materially adversely impacted.
Additionally, given the greater credit restrictions that are being invoked by lenders around the world, our ability to access the capital markets may be
severely restricted at a time when we would like, or need, to access such capital markets, which could have an impact on our flexibility to pursue additional
expansion opportunities and maintain our desired level of revenue growth in the future.
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.
As a result, there could be significant variability in the demand for our products, our past operating results may not be indicative of our future operating
results.
Fluctuation in demand is dependent on, among other things the size of the markets for our products, the rate at which such markets develop, and the
level of capital spending by end customers. We cannot assure you of the rate, or extent to which, capital spending by end customers will grow, if at all.
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
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