WDC » Topics » If we are unable to timely and cost-effectively develop heads and media with leading technology and overall quality, our ability to sell our products may be significantly diminished, which could materially and adversely affect our business and financial r

These excerpts taken from the WDC 10-K filed Aug 20, 2008.
If we are unable to timely and cost-effectively develop heads and media with leading technology and overall quality, our ability to sell our products may be significantly diminished, which could materially and adversely affect our business and financial results.
 
Under our business plan, we are developing and manufacturing a substantial portion of the heads and media used in some of the hard drive products we manufacture. Consequently, we are more dependent upon our own development and execution efforts and less able to take advantage of head and media technologies developed by other manufacturers. Technology transition for head and media designs is critical to increasing our volume production of heads and media. There can be no assurance, however, that we will be successful in timely and cost-effectively developing and manufacturing heads or media for products using future technologies. We also may not effectively transition our head or media design and technology to achieve acceptable manufacturing yields using the technologies necessary to satisfy our customers’ product needs, or we may encounter quality problems with the heads or media we manufacture. In addition, we may not have access to external sources of supply without incurring substantial costs which would negatively impact our business and financial results.
 
If we are
unable to timely and cost-effectively develop heads and media
with leading technology and overall quality, our ability to sell
our products may be significantly diminished, which could
materially and adversely affect our business and financial
results.



 



Under our business plan, we are developing and manufacturing a
substantial portion of the heads and media used in some of the
hard drive products we manufacture. Consequently, we are more
dependent upon our own development and execution efforts and
less able to take advantage of head and media technologies
developed by other manufacturers. Technology transition for head
and media designs is critical to increasing our volume
production of heads and media. There can be no assurance,
however, that we will be successful in timely and
cost-effectively developing and manufacturing heads or media for
products using future technologies. We also may not effectively
transition our head or media design and technology to achieve
acceptable manufacturing yields using the technologies necessary
to satisfy our customers’ product needs, or we may
encounter quality problems with the heads or media we
manufacture. In addition, we may not have access to external
sources of supply without incurring substantial costs which
would negatively impact our business and financial results.


 




EXCERPTS ON THIS PAGE:

10-K (2 sections)
Aug 20, 2008
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