Seagate 2008 Annual Report Download - page 34

Table of Contents
significantly independent of our actual operating performance, and you could lose all or a substantial part of your investment. The market price
of our common shares could fluctuate significantly in response to several factors, including among others:
• general uncertainty in stock market conditions occasioned by global economic conditions, negative financial news and the
continued instability of several large financial institutions;
•
actual or anticipated variations in our results of operations;
• announcements of innovations, new products or significant price reductions by us or our competitors, including those competitors
who offer alternative storage technology solutions;
•
our failure to meet the performance estimates of investment research analysts;
•
the timing of announcements by us or our competitors of significant contracts or acquisitions;
• general stock market conditions;
•
the occurrence of major catastrophic events;
•
changes in financial estimates by investment research analysts;
• changes in the credit ratings of our indebtedness by rating agencies; and
• the sale of our common shares held by certain equity investors or members of management.
Purchase Commitments to Certain Suppliers
—If revenues fall or customer demand decreases significantly, we may not meet all of our
purchase commitments to certain suppliers.
From time to time, we enter into long-term, non-cancelable purchase commitments with certain suppliers in order to secure certain
components for the production of our products or to supplement our internal manufacturing capacity for certain components. If our actual
revenues in the future are lower than our projections or if customer demand decreases significantly below our projections, we may not meet all
of our purchase commitments with these suppliers. As a result, it is possible that we will have to shift output from our internal manufacturing
facilities to these suppliers or make penalty-type payments under these contracts.
Perpendicular Recording Technology
—Products based on perpendicular technology require increased quantities of precious metals and
scarce alloys like platinum and ruthenium, which increase the risks of higher costs and production delays that could adversely impact our
results of operations.
Perpendicular recording technology requires recording media with more layers, which requires the use of more precious metals and scarce
alloys like platinum and ruthenium to create such layers. These precious metals and scarce alloys could become increasingly expensive and, at
times, difficult to acquire. Accordingly, we will be exposed to the increased risk that higher costs or reduced availability of these precious metals
and scarce alloys could adversely impact our results of operations.
Risks Associated with Future Strategic Alliances, Joint Ventures or Investments
—We may not be able to identify suitable strategic alliances,
acquisitions, joint ventures or investment opportunities, or successfully acquire and integrate companies that provide complementary
products or technologies.
Our growth strategy may involve pursuing strategic alliances with, making acquisitions of, forming joint ventures with or making
investments in other companies that are complementary to our business. There is substantial competition for attractive strategic alliance,
acquisition, joint venture and investment candidates. Accordingly, we may not be able to identify suitable strategic alliances, acquisition, joint
venture, or investment candidates. Even if we can identify them, we cannot assure you that we will be able to partner with, acquire or invest in
suitable candidates, or integrate acquired technologies or operations
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