MRVL » Topics » Our financial condition and results of operations may vary, which may cause the price of our common shares to decline.

This excerpt taken from the MRVL 10-Q filed Jun 11, 2009.

Our financial condition and results of operations may vary, which may cause the price of our common shares to decline.

Our quarterly operating results have fluctuated in the past and could do so in the future. Because our operating results are difficult to predict, you should not rely on quarterly comparisons of our results of operations as an indication of our future performance.

Fluctuations in our operating results may be due to a number of factors, including, but not limited to, those listed below and those identified throughout this “Risk Factors” section:

 

   

general economic and political conditions and specific conditions in the markets we address, including the continuing volatility in the technology sector and semiconductor industry, and current general economic volatility;

 

   

order or shipment cancellations, rescheduling or deferrals of significant customer orders;

 

   

our ability to scale our operations in response to changes in demand for our existing products and services or demand for new products requested by our customers;

 

   

gain or loss of a key customer;

 

   

our ability to maintain a competitive cost structure for our manufacturing and assembly and test processes;

 

   

failure to qualify our products or our suppliers’ manufacturing lines;

 

   

our ability to exercise stringent quality control measures to obtain high yields;

 

   

effective and timely update of equipment and facilities as required for leading edge production capabilities; and

 

   

any litigation could result in substantial costs and a diversion of management’s attention and resources that are needed to successfully run our business.

Due to fluctuations in our quarterly operating results and other factors, the price at which our common shares will trade is likely to continue to be highly volatile. Recently we have experienced a substantial downturn in the market price of our common shares. In future periods, if our revenues or operating results are below our estimates or the estimates or expectations of public market analysts and investors, our stock price could decline. On average, technology companies have been subject to a greater number of securities class action claims than companies in many other industries as a result of stock price volatility. If our stock price is volatile, we may become involved in this type of litigation. Any litigation could result in substantial costs and a diversion of management’s attention and resources that are needed to successfully run our business.

 

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These excerpts taken from the MRVL 10-K filed Apr 1, 2009.

Our financial condition and results of operations may vary, which may cause the price of our common shares to decline.

Our quarterly operating results have fluctuated in the past and could do so in the future. Because our operating results are difficult to predict, you should not rely on quarterly comparisons of our results of operations as an indication of our future performance.

 

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Fluctuations in our operating results may be due to a number of factors, including, but not limited to, those listed below and those identified throughout this “Risk Factors” section:

 

   

general economic and political conditions and specific conditions in the markets we address, including the continuing volatility in the technology sector and semiconductor industry, and current general economic volatility;

 

   

order or shipment cancellations, rescheduling or deferrals of significant customer orders;

 

   

our ability to scale our operations in response to changes in demand for our existing products and services or demand for new products requested by our customers;

 

   

gain or loss of a key customer;

 

   

our ability to maintain a competitive cost structure for our manufacturing and assembly and test processes;

 

   

failure to qualify our products or our suppliers’ manufacturing lines;

 

   

our ability to exercise stringent quality control measures to obtain high yields; and

 

   

effective and timely update of equipment and facilities as required for leading edge production capabilities.

Due to fluctuations in our quarterly operating results and other factors, the price at which our common shares will trade is likely to continue to be highly volatile. Recently we have experienced a substantial downturn in the market price of our common shares. In future periods, if our revenues or operating results are below our estimates or the estimates or expectations of public market analysts and investors, our stock price could decline. On average, technology companies have been subject to a greater number of securities class action claims than companies in many other industries as a result of stock price volatility. If our stock price is volatile, we may become involved in this type of litigation. Any litigation could result in substantial costs and a diversion of management’s attention and resources that are needed to successfully run our business.

Our financial condition and results of operations may vary, which may cause the price of our common shares to decline.

Our quarterly operating results have fluctuated in the past and could do so in the future. Because our operating results are difficult to predict, you should not rely on quarterly comparisons of our results of operations as an indication of our future performance.

 

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Table of Contents

Fluctuations in our operating results may be due to a number of factors, including, but not limited to, those listed below and those identified throughout this “Risk Factors” section:

 

   

general economic and political conditions and specific conditions in the markets we address, including the continuing volatility in the technology sector and semiconductor industry, and current general economic volatility;

 

   

order or shipment cancellations, rescheduling or deferrals of significant customer orders;

 

   

our ability to scale our operations in response to changes in demand for our existing products and services or demand for new products requested by our customers;

 

   

gain or loss of a key customer;

 

   

our ability to maintain a competitive cost structure for our manufacturing and assembly and test processes;

 

   

failure to qualify our products or our suppliers’ manufacturing lines;

 

   

our ability to exercise stringent quality control measures to obtain high yields; and

 

   

effective and timely update of equipment and facilities as required for leading edge production capabilities.

Due to fluctuations in our quarterly operating results and other factors, the price at which our common shares will trade is likely to continue to be highly volatile. Recently we have experienced a substantial downturn in the market price of our common shares. In future periods, if our revenues or operating results are below our estimates or the estimates or expectations of public market analysts and investors, our stock price could decline. On average, technology companies have been subject to a greater number of securities class action claims than companies in many other industries as a result of stock price volatility. If our stock price is volatile, we may become involved in this type of litigation. Any litigation could result in substantial costs and a diversion of management’s attention and resources that are needed to successfully run our business.

Our financial condition and results of operations may vary, which may cause the price of our common shares to decline.

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">Our quarterly operating results have fluctuated in the past and could do so in the future. Because our operating results are difficult to predict, you
should not rely on quarterly comparisons of our results of operations as an indication of our future performance.

 


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Fluctuations in our operating results may be due to a number of factors, including, but not limited to,
those listed below and those identified throughout this “Risk Factors” section:

 







  

general economic and political conditions and specific conditions in the markets we address, including the continuing volatility in the technology sector and
semiconductor industry, and current general economic volatility;

 







  

order or shipment cancellations, rescheduling or deferrals of significant customer orders;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

our ability to scale our operations in response to changes in demand for our existing products and services or demand for new products requested by our customers;

 







  

gain or loss of a key customer;

 







  

our ability to maintain a competitive cost structure for our manufacturing and assembly and test processes;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

failure to qualify our products or our suppliers’ manufacturing lines;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

our ability to exercise stringent quality control measures to obtain high yields; and

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

effective and timely update of equipment and facilities as required for leading edge production capabilities.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Due to fluctuations in our quarterly operating results and other factors, the price at which our common shares will trade is likely to continue to be
highly volatile. Recently we have experienced a substantial downturn in the market price of our common shares. In future periods, if our revenues or operating results are below our estimates or the estimates or expectations of public market analysts
and investors, our stock price could decline. On average, technology companies have been subject to a greater number of securities class action claims than companies in many other industries as a result of stock price volatility. If our stock price
is volatile, we may become involved in this type of litigation. Any litigation could result in substantial costs and a diversion of management’s attention and resources that are needed to successfully run our business.

STYLE="margin-top:18px;margin-bottom:0px">Our business, financial condition and results of operations may be adversely impacted by the recent global financial crisis. As a result, our financial results and
the market price of our common shares may decline.

We operate primarily in the semiconductor industry, which is cyclical and
subject to rapid change and evolving industry standards. From time to time, this industry has experienced significant demand downturns. These downturns are characterized by decreases in product demand, excess customer inventories and sometimes
accelerated erosion of prices. These factors could cause substantial fluctuations in our revenue and results of operations. In addition, during these downturns some competitors may become more aggressive in their pricing practices, which would
adversely impact our gross margin. Furthermore, our foundry partners often require significant amounts of financing in order to build wafer fabrication facilities. If they are unable to obtain financing and anticipated capacity is not completed, we
may experience a shortage of capacity, which could increase our costs or reduce our ability to meet customer demand. Any downturns in the current environment may be severe and prolonged, and any failure of the markets in which we operate to fully
recover from downturns could seriously impact our revenue and harm our business, financial condition and results of operations.

SIZE="2">Recently global credit and financial markets have been experiencing extreme volatility and disruptions, including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth,
volatile energy costs, increases in unemployment rates, and uncertainty about economic stability. As a result, in the fourth quarter of fiscal 2009 we experienced cancellations, deferrals and a significant slowdown in orders and anticipate that
these lower revenue levels could continue for the foreseeable future. These conditions make it difficult for our customers, our vendors and us to accurately forecast and plan future business activities, and could cause global businesses to slow
spending on our products and services, which

 


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would delay and lengthen sales cycles. During challenging economic times our customers and distributors may face issues gaining timely access to
sufficient credit, which could impact their ability to make timely payments to us. If that were to occur, we may be required to increase our allowance for doubtful accounts and our days sales outstanding would increase. We cannot predict the timing,
strength or duration of any economic slowdown or subsequent economic recovery, global or in the hard disk drive and semiconductor industry. If the economy or markets in which we operate continue to deteriorate, our business, financial condition and
results of operations will likely be materially and adversely affected. Additionally, the combination of our lengthy sales cycle coupled with challenging macroeconomic conditions could adversely impact our results of operations.


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