This excerpt taken from the MRVL 10-Q filed Dec 6, 2007.
results may vary which may cause the price of our common stock to decline.
We currently provide guidance on revenue and gross margin on a quarterly basis. Our quarterly operating results have fluctuated in the past and are likely to 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. We have made substantial investments in expanding our operations which has resulted in an increase in our operating expenses. We may not be able to increase revenues in an amount sufficient to offset these increased expenditures, which may lead to a loss for a quarterly period.
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:
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
our ability to realize the benefits expected from our acquisition of the Intel communications and application processor business.
Due to fluctuations in our quarterly operating results and other factors, the price at which our common stock will trade is likely to continue to be highly volatile. 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 managements attention and resources that are needed to successfully run our business.