Netgear 2010 Annual Report Download - page 14

Table of Contents
We expect our operating results to fluctuate on a quarterly and annual basis, which could cause our stock price to fluctuate or decline.
Our operating results are difficult to predict and may fluctuate substantially from quarter-to-quarter or year-to-
year for a variety of reasons,
many of which are beyond our control. If our actual revenue were to fall below our estimates or the expectations of public market analysts or
investors, our quarterly and annual results would be negatively impacted and the price of our stock could decline. Other factors that could affect
our quarterly and annual operating results include those listed in the risk factors section of this report and others such as:
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changes in the pricing policies of or the introduction of new products by us or our competitors;
•
unanticipated shift or decline in profit by geographical region that would adversely impact our tax rate;
• slow or negative growth in the networking product, personal computer, Internet infrastructure, home electronics and related
technology markets, as well as decreased demand for Internet access;
•
operational disruptions, such as transportation delays or failure of our order processing system, particularly if they occur at the end of
a fiscal quarter;
•
geopolitical disruption leading to delay or even stoppage of our operations in manufacturing, transportation, technical support and
research and development;
•
delay or failure of our service provider customers to purchase at the volumes that we forecast;
•
foreign currency exchange rate fluctuations in the jurisdictions where we transact sales and expenditures in local currency;
•
changes in or consolidation of our sales channels and wholesale distributor relationships or failure to manage our sales channel
inventory and warehousing requirements;
•
delay or failure to fulfill orders for our products on a timely basis;
•
allowance for bad debts exposure with our existing customers and new customers, particularly as we expand into new international
markets;
•
disruptions or delays related to our financial and enterprise resource planning systems;
•
our inability to accurately forecast product demand;
•
component supply constraints from our vendors;
•
unfavorable level of inventory and turns;
•
unanticipated shift in overall product mix from higher to lower margin products that would adversely impact our margins;
•
changes in the terms of our contracts with customers or suppliers that cause us to incur additional expenses or assume additional
liabilities;
•
delays in the introduction of new products by us or market acceptance of these products;
•
an increase in price protection claims, redemptions of marketing rebates, product warranty and stock rotation returns or allowance for
doubtful accounts;
•
litigation involving patent infringement;
•
epidemic or widespread failure in one or more of our products;
•
unanticipated safety issues involving one or more of our products;
•
challenges associated with integrating acquisitions that we make, or with realizing value from our strategic investments in other
companies;
•
labor unrest at facilities managed by our third
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party manufacturers;