OPLK » Topics » If our customers do not approve our manufacturing processes and qualify our products, we will lose significant customer sales and opportunities.

These excerpts taken from the OPLK 10-K filed Sep 12, 2008.
If our customers do not approve our manufacturing processes and qualify our products, we will lose significant customer sales and opportunities.
 
Customers generally will not purchase any of our products before they qualify them and approve our manufacturing processes and quality control system. If particular customers do not approve of our manufacturing processes, we will lose the sales opportunities with those customers.
 
Our customers typically expend significant efforts in evaluating and qualifying our products and manufacturing process prior to placing an order. This evaluation and qualification process frequently results in a lengthy sales cycle, typically ranging from nine to twelve months and sometimes longer. Generally, customers consider a wide range of issues before purchasing our products, including interoperation with other components, product performance and reliability. Even after this evaluation process, it is possible that a potential customer will not purchase our products. In addition, our customers’ product purchases are frequently subject to unplanned processing and other delays, particularly with respect to larger customers for which our products represent a very small percentage of their overall purchase activity. If sales forecasts to specific customers are not realized, our revenue and results of operations may be negatively impacted. Long sales cycles may cause our revenues and operating results to vary significantly and unexpectedly from quarter to quarter, which could cause volatility in our stock price.
 
If our
customers do not approve our manufacturing processes and qualify
our products, we will lose significant customer sales and
opportunities.



 



Customers generally will not purchase any of our products before
they qualify them and approve our manufacturing processes and
quality control system. If particular customers do not approve
of our manufacturing processes, we will lose the sales
opportunities with those customers.


 



Our customers typically expend significant efforts in evaluating
and qualifying our products and manufacturing process prior to
placing an order. This evaluation and qualification process
frequently results in a lengthy sales cycle, typically ranging
from nine to twelve months and sometimes longer. Generally,
customers consider a wide range of issues before purchasing our
products, including interoperation with other components,
product performance and reliability. Even after this evaluation
process, it is possible that a potential customer will not
purchase our products. In addition, our customers’ product
purchases are frequently subject to unplanned processing and
other delays, particularly with respect to larger customers for
which our products represent a very small percentage of their
overall purchase activity. If sales forecasts to specific
customers are not realized, our revenue and results of
operations may be negatively impacted. Long sales cycles may
cause our revenues and operating results to vary significantly
and unexpectedly from quarter to quarter, which could cause
volatility in our stock price.


 




This excerpt taken from the OPLK 10-K filed Sep 14, 2007.
If our customers do not approve our manufacturing processes and qualify our products, we will lose significant customer sales and opportunities.
 
Customers generally will not purchase any of our products before they qualify them and approve our manufacturing processes and quality control system. Our customers may require us to register under international quality standards, such as ISO 9001. We are currently registered under ISO 9001:2000. Delays in product qualification or loss of ISO 9001 certification may cause a product to be dropped from a long-term supply program and result in a significant lost revenue opportunity. If particular customers do not approve of our manufacturing processes, we will lose the sales opportunities with those customers.
 
Our customers typically expend significant efforts in evaluating and qualifying our products and manufacturing process prior to placing an order. This evaluation and qualification process frequently results in a lengthy sales cycle, typically ranging from nine to twelve months and sometimes longer. During this time, customers may perform or require us to perform extensive evaluation and qualification testing of our products. Generally, they consider a wide range of issues before purchasing our products, including interoperation with other components, product performance and reliability. During the period that our customers are evaluating our products and before they place an order with us, we may incur substantial sales, marketing and research and development expenses, expend significant management efforts, and increase manufacturing capacity and order long lead-time supplies. Even after this evaluation process, it is possible that a potential customer will not purchase our products.
 
In addition, our customers’ product purchases are frequently subject to unplanned processing and other delays, particularly with respect to larger customers for which our products represent a very small percentage of their overall purchase activity. If sales forecasts to specific customers are not realized, our revenue and results of


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operations may be negatively impacted. Long sales cycles may cause our revenues and operating results to vary significantly and unexpectedly from quarter to quarter, which could cause volatility in our stock price.
 
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