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These excerpts taken from the CNXT 10-K filed Nov 26, 2008. We are
subject to the risks of doing business
internationally.
For each of fiscal 2008, 2007 and 2006 approximately 95% of our
net revenues were from customers located outside of the United
States, primarily in the Asia-Pacific region. In addition, a
significant portion of our workforce and many of our key
suppliers are located outside of the United States. Our
international operations consist of research and development,
sales offices, and other general and administrative functions.
Our international operations are subject to a number of risks
inherent in operating abroad. These include, but are not limited
to, risks regarding:
Approximately $35.4 million of our $105.9 million of
cash and cash equivalents at October 3, 2008 is located in
foreign countries where we conduct business, including
approximately $20.7 million in India and $4.0 million
in China. These amounts are not freely available for dividend
repatriation to the United States without the imposition and
payment, where applicable, of local taxes. Further, the
repatriation of these funds is subject to compliance with
applicable local government laws and regulations, and in some
cases, requires government consent, including in India and
China. Our inability to repatriate these funds quickly and
without any required government consents may limit the resources
available to us to fund our operations in the United States and
other locations or to pay indebtedness.
Because most of our international sales are currently
denominated in U.S. dollars, our products could become less
competitive in international markets if the value of the
U.S. dollar increases relative to foreign currencies.
From time to time, we may enter into foreign currency forward
exchange contracts to minimize risk of loss from currency
exchange rate fluctuations for foreign currency commitments
entered into in the ordinary course of business. We have not
entered into foreign currency forward exchange contracts for
other purposes. Our financial condition and results of
operations could be affected (adversely or favorably) by
currency fluctuations.
Table of Contents
We also conduct a significant portion of our international sales
through distributors. Sales to distributors and other resellers
accounted for approximately 39%, 42% and 40% of our net revenues
in fiscal 2008, 2007 and 2006, respectively. Our arrangements
with these distributors are terminable at any time, and the loss
of these arrangements could have an adverse effect on our
operating results.
We are subject to the risks of doing business internationally. For each of fiscal 2008, 2007 and 2006 approximately 95% of our net revenues were from customers located outside of the United States, primarily in the Asia-Pacific region. In addition, a significant portion of our workforce and many of our key suppliers are located outside of the United States. Our international operations consist of research and development, sales offices, and other general and administrative functions. Our international operations are subject to a number of risks inherent in operating abroad. These include, but are not limited to, risks regarding:
Approximately $35.4 million of our $105.9 million of cash and cash equivalents at October 3, 2008 is located in foreign countries where we conduct business, including approximately $20.7 million in India and $4.0 million in China. These amounts are not freely available for dividend repatriation to the United States without the imposition and payment, where applicable, of local taxes. Further, the repatriation of these funds is subject to compliance with applicable local government laws and regulations, and in some cases, requires government consent, including in India and China. Our inability to repatriate these funds quickly and without any required government consents may limit the resources available to us to fund our operations in the United States and other locations or to pay indebtedness. Because most of our international sales are currently denominated in U.S. dollars, our products could become less competitive in international markets if the value of the U.S. dollar increases relative to foreign currencies. From time to time, we may enter into foreign currency forward exchange contracts to minimize risk of loss from currency exchange rate fluctuations for foreign currency commitments entered into in the ordinary course of business. We have not entered into foreign currency forward exchange contracts for other purposes. Our financial condition and results of operations could be affected (adversely or favorably) by currency fluctuations.
Table of ContentsWe also conduct a significant portion of our international sales through distributors. Sales to distributors and other resellers accounted for approximately 39%, 42% and 40% of our net revenues in fiscal 2008, 2007 and 2006, respectively. Our arrangements with these distributors are terminable at any time, and the loss of these arrangements could have an adverse effect on our operating results. | EXCERPTS ON THIS PAGE:
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