SanDisk 2011 Annual Report Download - page 94

We may not be able to realize the potential financial or strategic benefits of business acquisitions or
strategic investments, which could hurt our ability to grow our business, develop new products or sell our
products. We have acquired and invested in other businesses that offered products, services and technologies that
we believe will help expand or enhance our existing products and business. In May 2011, we acquired Pliant, and
we may enter into future acquisitions of, or investments in, businesses, in order to complement or expand our
current businesses or enter into new markets. Negotiation and integration of acquisitions or strategic investments
could divert management’s attention and other company resources. Any of the following risks associated with
past or future acquisitions or investments could impair our ability to grow our business, develop new products
and sell our products and ultimately could harm our growth or financial results:
• difficulty in combining the technology, products, operations or workforce of the acquired business with
our business;
• difficulties in entering into new markets in which we have limited or no experience and where
competitors have stronger positions;
• loss of, or impairment of relationships with, any of our key employees, vendors or customers;
• difficulty in operating in new and potentially disperse locations;
• disruption of our ongoing businesses or the ongoing business of the company we invest in or acquire;
• failure to realize the potential financial or strategic benefits of the transaction;
• difficulty integrating the accounting, management information, human resources and other
administrative systems of the acquired business;
• disruption of or delays in ongoing research and development efforts and release of new products to
market;
• diversion of capital and other resources;
• assumption of liabilities;
• issuance of equity securities that may be dilutive to our existing stockholders;
• diversion of resources and unanticipated expenses resulting from litigation arising from potential or
actual business acquisitions or investments;
• failure of the due diligence processes to identify significant issues with product quality, technology and
development, or legal and financial issues, among other things;
• incurring one-time charges, increased contingent liabilities, adverse tax consequences, depreciation or
deferred compensation charges, amortization of intangible assets or impairment of goodwill, which
could harm our results of operations; and
• potential delay in customer purchasing decisions due to uncertainty about the direction of our product
offerings or those of the acquired business.
Mergers and acquisitions of high-technology companies are inherently risky and subject to many factors
outside of our control and no assurance can be given that our previous or future acquisitions will be successful,
will deliver the intended benefits of such acquisition, and will not materially harm our business, operating results
or financial condition. Failure to manage and successfully integrate acquisitions could materially harm our
business and operating results.
Our success depends on our key personnel, including our senior management, and the loss of key personnel
or the transition of key personnel could disrupt our business. Our success greatly depends on the continued
contributions of our senior management and other key research and development, sales, marketing and operations
personnel. We do not have employment agreements with any of our executive officers and they are free to
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