Seagate 2011 Annual Report Download - page 37

Table of Contents
• Global Health Outbreaks. The occurrence of a pandemic disease may adversely impact our operations, and some of our key
customers. Such diseases could also potentially disrupt the timeliness and reliability of the distribution network we rely on.
Political Risks Associated with International Operations
—Our international operations subject us to risks related to political unrest and
terrorism.
We have manufacturing facilities in parts of the world that periodically experience political unrest. This could disrupt our ability to
manufacture important components as well as cause interruptions and/or delays in our ability to ship components to other locations for continued
manufacture and assembly. Any such delays or interruptions could result in delays in our ability to fill orders and have an adverse effect on our
results of operations and financial condition. U.S. and international responses to the ongoing hostilities in various regions and the risk of terrorist
attacks or hostilities elsewhere in the world could exacerbate these risks.
Legal and Operational Risks Associated with International Operations
—Our international operations subject us to risks related to staffing
and management, legal and regulatory requirements and the protection of intellectual property.
Operating outside of the United States creates difficulties associated with staffing and managing our international manufacturing facilities,
complying with local legal and regulatory requirements and protecting our intellectual property. We cannot assure you that we will continue to
be found to be operating in compliance with applicable customs, currency exchange control regulations, transfer pricing regulations or any other
laws or regulations to which we may be subject. We also cannot assure you that these laws will not be modified.
Dependence on Key Personnel
—The loss of key executive officers and employees could negatively impact our business prospects.
Our future performance depends to a significant degree upon the continued service of key members of management as well as marketing,
sales and product development personnel. The loss of one or more of our key personnel may have a material adverse effect on our business,
results of operations and financial condition. We believe our future success will also depend in large part upon our ability to attract, retain and
further motivate highly skilled management, marketing, sales and product development personnel. We have experienced intense competition for
personnel, and we cannot assure you that we will be able to retain our key employees or that we will be successful in attracting, assimilating and
retaining personnel in the future.
Securities Litigation
—Significant fluctuations in the market price of our ordinary shares could result in securities class action claims
against us.
Significant price and value fluctuations have occurred with respect to the publicly traded securities of disk drive companies and technology
companies generally. The price of our ordinary shares is likely to be volatile in the future. In the past, following periods of decline in the market
price of a company's securities, class action lawsuits have often been pursued against that company. If similar litigation were pursued against us,
it could result in substantial costs and a diversion of management's attention and resources, which could materially adversely affect our results of
operations, financial condition and liquidity.
34