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Mr. Massengill joined us in 1985 and has served in various executive capacities. From October 1999 until January
2000, he served as Chief Operating Officer, from January 2000 until January 2002, he served as President, and from
January 2000 until October 2005, he served as Chief Executive Officer. He has served as Chairman of the Board since
November 2001.
Mr. Shakeel joined us in 1985 and has served in various executive capacities. From February 2000 until April 2001,
he served as Executive Vice President and General Manager of Hard Disk Drive Solutions, from April 2001 until January
2003, he served as Executive Vice President and Chief Operating Officer, and from January 2002 until June 2006, he
served as President. He was named Chief Executive Officer in October 2005.
Mr. Coyne joined us in 1983 and has served in various executive capacities. From November 2002 until June 2005,
Mr. Coyne served as Senior Vice President, Worldwide Operations, from June 2005 until September 2005, he served as
Executive Vice President, Worldwide Operations and from November 2005 until June 2006, he served as Executive Vice
President and Chief Operations Officer. Effective June 2006, he was named President, Chief Operating Officer.
Mr. Bukaty joined us in 1999 as Vice President, Corporate Law. Mr. Bukaty was appointed to Vice President,
General Counsel and Secretary in March 2002, and to Senior Vice President in January 2004, and assumed his current
position as Senior Vice President, Administration, General Counsel and Secretary in October 2004.
Mr. Milligan joined us in September 2002 as Vice President, Finance. He was appointed Senior Vice President and
Chief Financial Officer in January 2004. Before joining us, Mr. Milligan served in a variety of senior finance capacities at
Dell between April 1997 and September 2002, including Assistant Controller, European Controller, North European
Finance Director, Director of Finance for the Americas, and Controller for Dell Financial Services.
Dr. Moghadam joined us in October 2000 as Vice President, Engineering and site manager of our San Jose facility.
He served as Senior Vice President, Research and Development from November 2004 to November 2005 and was
appointed Senior Vice President and Chief Technology Officer in November 2005.
Item 1A. Risk Factors
Declines in average selling prices (“ASPs”) in the hard drive industry adversely affect our operating results.
The hard drive industry historically has experienced declining ASPs. Our ASPs tend to decline when competitors
lower prices as a result of decreased costs or to absorb excess capacity, liquidate excess inventories, restructure or attempt
to gain market share. Our ASPs also decline when there is a shift in the mix of product sales, and sales of lower priced
products increase relative to those of higher priced products. If ASPs in the hard drive industry continue to decline, then
our ASPs will also likely decline, which would adversely affect our operating results.
If we fail to anticipate or timely respond to changes in the markets for hard drives, our operating results could be adversely
affected.
Over the past few years the consumer market for computers has shifted significantly towards lower priced systems. If
we are not able to continue to offer a competitively priced hard drive for the low-cost PC market, our share of that market
will likely fall, which could harm our operating results.
The market for hard drives is also fragmenting into a variety of devices and products. Many industry analysts expect, as do
we, that as content increasingly convert to digital technology from the older, analog technology, the technology of computers
and consumer electronics will continue to converge, and hard drives will be found in many CE products other than computers.
In addition, we expect that the consumer market for multi-media applications, including audio-video products,
incorporating high capacity, and handheld consumer storage will continue to grow. However, because this market
remains relatively new, accurate forecasts for future growth remain challenging. Moreover, some of the devices, such as
personal video recorders and digital video recorders, or other products outside of the CE market, may require attributes
not currently offered in our products, resulting in a need to expend capital to develop new interfaces, form factors,
technical specifications or hard drive features, increasing our overall operational expense without corresponding
incremental revenue at this stage. If we are not successful in continuing to deploy our hard drive technology and
expertise to develop new products for the emerging CE market, or if we are required to incur significant costs in
developing such products, it may harm our operating results.
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