Netgear 2011 Annual Report Download - page 37

Table of Contents
critical systems, our ability to utilize these redundant systems requires further testing and we cannot be assured that such systems are fully
functional. For example, much of our order fulfillment process is automated and the order information is stored on our servers. A significant
business interruption could result in losses or damages and harm our business. If our computer systems and servers go down at the end of a fiscal
quarter, our ability to recognize revenue may be delayed until we were able to utilize back-up systems and continue to process and ship our
orders. This could cause our stock price to decline significantly. Moreover, potential breaches of our security measures and the accidental loss,
inadvertent disclosure or unapproved dissemination of proprietary information or sensitive or confidential data about us or our customers,
including the potential loss or disclosure of such information or data as a result of hacking, fraud, trickery or other forms of deception, could
expose us, our customers or the individuals affected to a risk of loss or misuse of this information, result in litigation and potential liability for
us, damage our brand and reputation or otherwise harm our business.
None.
Our principal administrative, sales, marketing and research and development facilities currently occupy approximately 142,700 square feet
in an office complex in San Jose, California, under a lease that expires in March 2018.
Our international headquarters occupy approximately 10,000 square feet in an office complex in Cork, Ireland, under a lease entered into in
February 2006 and expiring in December 2026. Our international sales personnel are based out of local sales offices or home offices in Austria,
Australia, Brazil, Canada, China, Czech Republic, Denmark, France, Germany, Hong Kong, India, Italy, Japan, Korea, Mexico, New Zealand,
Poland, Russia, Singapore, Spain, Sweden, Switzerland, the Netherlands, the United Arab Emirates, and the United Kingdom. We also have
operations personnel using a leased facility in Hong Kong. We also maintain research and development facilities in Atlanta, Chicago, Beijing,
Guangzhou, Nanjing, and Shanghai, China, and in Taipei, Taiwan. From time to time we consider various alternatives related to our long-term
facilities needs. While we believe our existing facilities provide suitable space for our operations and are adequate to meet our immediate needs,
it may be necessary to lease additional space to accommodate future growth. We have invested in internal capacity and strategic relationships
with outside manufacturing vendors as needed to meet anticipated demand for our products.
We use third parties to provide warehousing services to us, consisting of facilities in Southern California, Australia, Hong Kong and the
Netherlands.
The information set forth under the heading “Litigation and Other Legal Matters” in Note 9, Commitments and Contingencies , in Notes to
Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K, is incorporated herein by reference. For additional
discussion of certain risks associated with legal proceedings, see Item 1A, Risk Factors .
Not applicable.
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Item 1B.
Unresolved Staff Comments
Item 2.
Properties
Item 3.
Legal Proceedings
Item 4.
Mine Safety Disclosures