Garmin 2008 Annual Report Download - page 50

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provisions and accruals. The results of an audit or litigation could have a material effect on our income tax
provision, net income or cash flows in the period or periods for which that determination is made.
Risks Relating to Our Shares
The volatility of our stock price could adversely affect investment in our common shares.
The market price of our common shares has been, and may continue to be, highly volatile. During 2008, the
price of our common shares ranged from a low of $14.40 to a high of $95.58. A variety of factors could cause the
price of our common shares to fluctuate, perhaps substantially, including:
• announcements and rumors of developments related to our business, our competitors, our suppliers or
the markets in which we compete;
• quarterly fluctuations in our actual or anticipated operating results;
• the availability, pricing and timeliness of delivery of components, such as flash memory and liquid
crystal displays, used in our products;
• general conditions in the worldwide economy, including fluctuations in interest rates;
• announcements of technological innovations;
• new products or product enhancements by us or our competitors;
• product obsolescence and our ability to manage product transitions;
• developments in patents or other intellectual property rights and litigation;
• developments in our relationships with our customers and suppliers;
• research reports or opinions issued by securities analysts or brokerage houses related to Garmin, our
competitors, our suppliers or our customers; and
• any significant acts of terrorism against the United States, Taiwan or significant markets where we sell
our products.
In addition, in recent years the stock market in general and the markets for shares of technology companies
in particular, have experienced extreme price fluctuations which have often been unrelated to the operating
performance of affected companies. Any such fluctuations in the future could adversely affect the market price of
our common shares, and the market price of our common shares may decline.
Our officers and directors exert substantial influence over us.
As of February 4, 2009 members and former members of our Board of Directors and our executive officers,
together with members of their families and entities that may be deemed affiliates of or related to such persons or
entities, beneficially owned approximately 43.7% of our outstanding common shares. Accordingly, these
shareholders may be able to determine the outcome of corporate actions requiring shareholder approval, such as
mergers and acquisitions. This level of ownership may have a significant effect in delaying, deferring or preventing
a change in control of Garmin and may adversely affect the voting and other rights of other holders of our common
shares.
Provisions in our shareholder rights plan and our charter documents might deter, delay or prevent a third
party from acquiring us and Cayman Islands corporate law may impede a takeover, which could decrease the
value of our shares.
Our Board of Directors has the authority to issue up to 1,000,000 preferred shares and to determine the
price, rights, preferences, privileges and restrictions, including voting rights, of those shares without any further vote
or action by the shareholders. This could have an adverse impact on the market price of our common shares. We
have no present plans to issue any preferred shares, but we may do so. The rights of the holders of common shares
may be subject to, and adversely affected by, the rights of the holders of any preferred shares that may be issued in
the future. In addition, we have adopted a classified board of directors. Our shareholders are unable to remove any
director or the entire board of directors without a super majority vote. In addition, a super majority vote is required
to approve transactions with interested shareholders. Shareholders do not have the right to call a shareholders