Crucial 2011 Annual Report Download - page 19

Products that fail to meet specifications, are defective or that are otherwise incompatible with end uses could impose significant costs on
us.
Products that do not meet specifications or that contain, or are perceived by our customers to contain, defects or that are otherwise
incompatible with end uses could impose significant costs on us or otherwise materially adversely affect our business, results of operations or
financial condition. In recent periods we have further diversified and expanded our product offerings which could potentially increase the chance
that one of our products could fail to meet specifications in a particular application. If problems with nonconforming, defective or incompatible
products occur after we have shipped such products, we could be adversely affected in several ways, including the following:
We may make future acquisitions and alliances, which involve numerous risks.
Acquisitions and the formation of alliances, such as joint ventures and other partnering arrangements, involve numerous risks including the
following:
Acquisitions of, or alliances with, high-technology companies are inherently risky, and future transactions may not be successful and may
materially adversely affect our business, results of operations or financial condition.
The limited availability of raw materials, supplies or capital equipment could materially adversely affect our business, results of
operations or financial condition.
Our operations require raw materials that meet exacting standards. We generally have multiple sources of supply for our raw materials.
However, only a limited number of suppliers are capable of delivering certain raw materials that meet our standards. In some cases, materials are
provided by a single supplier. Various factors could reduce the availability of raw materials such as silicon wafers, photomasks, chemicals, gases,
photoresist, lead frames and molding compound. Shortages may occur from time to time in the future. In addition, disruptions in transportation
lines could delay our receipt of raw materials. Lead times for the supply of raw materials have been extended in the past. If our supply of raw
materials is disrupted or our lead times extended, our business, results of operations or financial condition could be materially adversely affected.
Our operations are dependent on our ability to procure advanced semiconductor equipment that enables the transition to lower cost
manufacturing processes. For certain key types of equipment, including photolithography tools, we are sometimes dependent on a single supplier.
In recent periods we have experienced difficulties in obtaining some equipment on a timely basis due to the supplier's limited capacity. Our
inability to obtain this equipment timely could adversely affect our ability to transition to next generation manufacturing processes and reduce
costs. Delays in obtaining equipment could also impede our ability to ramp production at new facilities and increase our overall costs of the ramp.
If we are unable to obtain advanced semiconductor equipment timely, our business, results of operations or financial condition could be materially
adversely affected.
18
• we may be required to replace product or otherwise compensate customers for costs incurred or damages caused by defective or
incompatible product, and
• we may encounter adverse publicity, which could cause a decrease in sales of our products.
• integrating the operations, technologies and products of acquired or newly formed entities into our operations;
• increasing capital expenditures to upgrade and maintain facilities;
• increasing debt to finance an acquisition or formation of a new business;
• diverting management's attention from normal daily operations;
• managing larger or more complex operations and facilities and employees in separate and diverse geographic areas; and
• hiring and retaining key employees.