Seagate 2014 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2014 Seagate annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

TableofContents
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.
Duetothecomplexityofourproducts,somedefectsmayonlybecomedetectableafterdeployment.
Ourproductsarehighlycomplexandaredesignedtooperateinandformpartoflargercomplexnetworksandstoragesystems.Defectsinourproducts,orin
thenetworksandsystemsofwhichtheyformapart,directlyorindirectly,haveresultedinandmayinthefutureresultin:
•increasedcostsandproductdelaysuntilcomplexsolutionlevelinteroperabilityissuesareresolved;
•costsassociatedwiththeremediationofanyproblemsattributabletoourproducts;
•lossofordelaysinrevenues;
•lossofcustomers;
•failuretoachievemarketacceptanceandlossofmarketshare;
•increasedserviceandwarrantycosts;and
•increasedinsurancecosts.
Defectsinourproductscouldalsoresultinlegalactionsbyourcustomersforpropertydamage,injuryordeath.Productliabilityclaimscouldexceedthelevel
ofinsurancecoveragethatwehaveobtainedtocoverdefectsinourproducts.Anysignificantuninsuredclaimscouldsignificantlyharmourfinancialcondition.
Wemaynotbeabletoidentifysuitablestrategicalliances,acquisitions,jointventuresorinvestmentopportunities,tosuccessfullyacquireandintegrate
companiesthatprovidecomplementaryproductsortechnologiesortorealizetheanticipatedbenefitsofsuchtransactions.
Ourgrowthstrategyinvolves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successfullyintoour
existingtechnologiesandoperations.Moreover,ourabilitytofinancepotentialstrategicalliances,acquisitions,jointventuresorinvestmentswillbelimitedbyour
highdegreeofleverage,thecovenantscontainedintheinstrumentsthatgovernouroutstandingindebtedness,andanyagreementsgoverninganyotherdebtwe
mayincur.
Ifwearesuccessfulinformingstrategicalliancesoracquiring,formingjointventuresormakinginvestmentsinothercompanies,anyofthesetransactions
mayhaveanadverseeffectonourresultsofoperations,particularlywhiletheoperationsofanacquiredbusinessarebeingintegrated.Itisalsolikelythat
integrationofacquiredcompanieswouldleadtothelossofkeyemployeesfromthosecompaniesorthelossofcustomersofthosecompanies.Inaddition,the
integrationofanyacquiredcompanieswouldrequiresubstantialattentionfromourseniormanagement,whichmaylimittheamountoftimeavailableto
27