Memorex 2007 Annual Report Download - page 66

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2008 Outlook
The following statements are based on our current outlook for 2008.
• Revenue is targeted at approximately $2.4 billion, representing growth of approximately 16 percent over 2007.
• Operating income, including restructuring, is targeted to be in the range of $95 million to $105 million. We currently
anticipate restructuring charges to be in the range of $4 million to $6 million for 2008.
• Diluted earnings per share is targeted between $1.51 and $1.68 which includes the negative impact of
approximately $0.08 from restructuring charges.
• Capital spending is targeted in the range of $15 million to $20 million.
• The tax rate is anticipated to be in the range of 35 percent to 37 percent, absent any one-time tax items that may
occur.
• Depreciation and amortization expense is targeted to be in the range of $48 million to $52 million.
Our business outlook is dependent on a variety of factors and is subject to the risks and uncertainties discussed
under “Forward-Looking Statements” below and under “Risk Factors” in Item 1A of this Form 10-K.
Forward-Looking Statements
We may from time to time make written or oral forward-looking statements with respect to our future goals, including
statements contained in this Form 10-K, in our other filings with the SEC and in our reports to shareholders.
Certain information which does not relate to historical financial information, including our outlook for fiscal year 2008,
may be deemed to constitute forward-looking statements. The words or phrases “is targeting,” “will likely result,” “are
expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “believe” or similar expressions identify “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to
certain risks and uncertainties that could cause our actual results in the future to differ materially from our historical results
and those presently anticipated or projected. We wish to caution investors not to place undue reliance on any such
forward-looking statements. Any forward-looking statements speak only as of the date on which such statements are made,
and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. Risk
factors include our ability to successfully integrate the acquisitions of the TDK Recording Media business and the Memcorp
business and achieve the anticipated benefits, including synergies, in a timely manner; our ability to successfully manage
the Memorex brand; our ability to successfully manage multiple brands globally; our ability to successfully defend our
intellectual property rights, including the Memorex and TDK Life on Record brands and the Philips patent cross-license;
continuing uncertainty in global economic conditions and particularly U.S. conditions that make it particularly difficult to
predict product demand; the volatility of the markets in which we operate; our ability to meet our cost reduction and
revenue growth targets; our ability to successfully implement our global manufacturing strategy for magnetic data storage
products and changes to our R&D organization and to realize the benefits expected from the related restructuring; our
ability to introduce new offerings in a timely manner either independently or in association with OEMs or other third
parties; our ability to achieve the expected benefits from the Moser Baer and other strategic relationships and distribution
agreements such as the GDM joint venture and Tandberg relationships; the competitive pricing environment and its
possible impact on profitability and inventory valuations; foreign currency fluctuations; the outcome of any pending or future
litigation; our ability to secure adequate supply of certain high demand products at acceptable prices; the ready availability
and price of energy and key raw materials or critical components; the market acceptance of newly introduced product and
service offerings; the rate of decline for certain existing products; the possibility that our goodwill or other assets may
become impaired, as well as various factors set forth in Item 1A of this Form 10-K and from time to time in our filings with
the SEC.
37