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WDC » Topics » If components and equipment that we use are available from only a limited number of suppliers or are in short supply, it may negatively impact our production and cause us to lose revenue.These excerpts taken from the WDC 10-K filed Aug 20, 2008. If
components and equipment that we use are available from only a
limited number of suppliers or are in short supply, it may
negatively impact our production and cause us to lose
revenue.
Our future operating results may also depend substantially on
our suppliers ability to timely qualify their components
in our programs, and their ability to supply us with these
components in sufficient volumes to meet our production
requirements. A number of the components that we use are
available from only a single or limited number of qualified
outside suppliers, and may be used across multiple product
lines. In addition, some of the components (or component types)
used in our products are used in other devices, such as mobile
telephones and digital cameras. If there is a significant
simultaneous upswing in demand for such a component (or
component type) from several high volume industries, resulting
in a supply reduction, or a component is otherwise in short
supply, or if a supplier fails to qualify or has a quality issue
with a component, we may experience delays or increased costs in
obtaining that component. If we are unable to obtain sufficient
quantities of materials used in the manufacture of magnetic
components, or other necessary components, we may experience
production delays which could cause us loss of revenue. If a
component becomes unavailable, we could suffer significant loss
of revenue.
In addition, certain equipment we use in our manufacturing or
testing processes is available only from a limited number of
suppliers. Some of this equipment uses materials that at times
could be in short supply. If these materials are not available,
or are not available in the quantities we require for our
manufacturing and testing processes, our ability to manufacture
our products could be impacted, and we could suffer significant
loss of revenue.
If components and equipment that we use are available from only a limited number of suppliers or are in short supply, it may negatively impact our production and cause us to lose revenue. Our future operating results may also depend substantially on our suppliers ability to timely qualify their components in our programs, and their ability to supply us with these components in sufficient volumes to meet our production requirements. A number of the components that we use are available from only a single or limited number of qualified outside suppliers, and may be used across multiple product lines. In addition, some of the components (or component types) used in our products are used in other devices, such as mobile telephones and digital cameras. If there is a significant simultaneous upswing in demand for such a component (or component type) from several high volume industries, resulting in a supply reduction, or a component is otherwise in short supply, or if a supplier fails to qualify or has a quality issue with a component, we may experience delays or increased costs in obtaining that component. If we are unable to obtain sufficient quantities of materials used in the manufacture of magnetic components, or other necessary components, we may experience production delays which could cause us loss of revenue. If a component becomes unavailable, we could suffer significant loss of revenue. In addition, certain equipment we use in our manufacturing or testing processes is available only from a limited number of suppliers. Some of this equipment uses materials that at times could be in short supply. If these materials are not available, or are not available in the quantities we require for our manufacturing and testing processes, our ability to manufacture our products could be impacted, and we could suffer significant loss of revenue. | EXCERPTS ON THIS PAGE:
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