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TableofContents
Ourquarterlyresultsofoperationsfluctuate,sometimessignificantly,fromperiodtoperiod,andmaycauseoursharepricetodecline.
Inthepast,ourquarterlyrevenueandresultsofoperationshavefluctuated,sometimessignificantly,fromperiodtoperiod.Thesefluctuations,whichwe
expecttocontinue,maybeoccasionedbyavarietyoffactors,including:
•currentuncertaintyinglobaleconomicconditionsmayposearisktotheoveralleconomy;
•adversechangesinthelevelofeconomicactivityinthemajorregionsinwhichwedobusiness;
•competitivepressuresresultinginlowersellingpricesbyourcompetitorstargetedtoencourageshiftingofcustomerdemand;
•delaysorproblemsinourintroductionofnewproducts,particularlynewdiskdriveswithlowercoststructures,theinabilitytoachievehigh
productionyieldsordelaysincustomerqualificationorinitialproductqualityissues;
•changesinpurchasingpatternsbyourdistributorcustomers;
•applicationofneworrevisedindustrystandards;
•disruptionsinoursupplychain;
•increasedcostsoradversechangesinavailabilityofsuppliesofrawmaterialsorcomponents;
•theimpactofcorporaterestructuringactivitiesthatwehaveandmaycontinuetoengagein;
•changesinthedemandforthecomputersystemsanddatastorageproductsthatcontainourproductsduetoseasonality,economicconditionsand
otherfactors;
•changesinpurchasesfromperiodtoperiodbyourprimarycustomers;
•shiftingtrendsincustomerdemandwhich,whencombinedwithoverproductionofparticularproducts,particularlywhentheindustryisservedby
multiplesuppliers,resultsinunfavorablesupply/demandimbalances;
•ourhighproportionoffixedcosts,includingresearchanddevelopmentexpenses;
•anyimpairmentsingoodwillorotherlong-livedassets;
•announcementsofnewproducts,servicesortechnologicalinnovationsbyusorourcompetitors;and
•adversechangesintheperformanceofourproducts.
Asaresult,webelievethatquarter-to-quartercomparisonsofourrevenueandresultsofoperationsmaynotbemeaningful,andthatthesecomparisonsmay
notbeanaccurateindicatorofourfutureperformance.Ourresultsofoperationsinoneormorefuturequartersmayfailtomeettheexpectationsofinvestment
researchanalystsorinvestors,whichcouldcauseanimmediateandsignificantdeclineinthetradingpriceofourordinaryshares.
Becauseweexperienceseasonalityinthesalesofourproducts,ourresultsofoperationswillgenerallybeadverselyimpactedduringthesecondhalfofour
fiscalyear.
Salesofcomputersystems,storagesubsystemsandconsumerelectronicstendtobeseasonal,andthereforeweexpecttocontinuetoexperienceseasonalityin
ourbusinessaswerespondtovariationsinourcustomers'demandforourproducts.Inparticular,weanticipatethatsalesofourproductswillcontinuetobelower
duringthesecondhalfofourfiscalyear.Intheclientcomputeandclientnon-computemarketapplicationsofourdiskdrivebusiness,thisseasonalityispartially
attributabletothehistoricaltrendinour
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