This excerpt taken from the MRVL 10-Q filed Dec 6, 2007.
a few customers and if we lose or experience a significant reduction in sales to any of these key customers, our revenues may decrease substantially.
We receive a significant amount of our revenues from a limited number of customers. For the nine months ended October 27, 2007 two customers accounted for more than 10% of our net revenue, for a combined total of 26%. For the nine months ended October 28, 2006, four customers each represented more than 10% of our net revenue, for a combined total of 51% of our net revenue. Sales to our largest customers have fluctuated significantly from period to period primarily due to the timing and number of design wins with each customer, as well as the continued diversification of our customer base as we expand into new markets, and will likely continue to fluctuate dramatically in the future. The loss of any of our largest customers, a significant reduction in sales we make to them, or any problems we encounter collecting amounts due from them would likely harm our financial condition and results of operations. Our operating results in the foreseeable future will continue to depend on sales to a relatively small number of customers, as well as the ability of these customers to sell products that incorporate our products. In the future, these customers may decide not to purchase our products at all, purchase fewer products than they did in the past, or alter their purchasing patterns in some other way, particularly because:
substantially all of our sales are made on a purchase order basis, which permits our customers to cancel, change or delay product purchase commitments with little or no notice to us and without penalty;
our customers may develop their own solutions;
our customers may purchase integrated circuits from our competitors; or
our customers may discontinue sales or lose market share in the markets for which they purchase our products.