1001426--9/11/2008--PERICOM_SEMICONDUCTOR

related topics

{product, market, service}

{customer, product, revenue}

{stock, price, operating}

{regulation, change, law}

{control, financial, internal}

{condition, economic, financial}

{operation, natural, condition}

{operation, international, foreign}

{acquisition, growth, future}

{cost, regulation, environmental}

{loss, insurance, financial}

{regulation, government, change}

{property, intellectual, protect}

{personnel, key, retain}

{provision, law, control}

{tax, income, asset}

FACTORS THAT MAY AFFECT OPERATING RESULTS In the past, our operating results have varied significantly and are likely to fluctuate in the future. The demand for our products depends on the growth of our end users' markets. If we do not develop products that our customers and end-users design into their products, or if their products do not sell successfully, our business and operating results would be harmed. The markets for our products are characterized by rapidly changing technology, and our financial results could be harmed if we do not successfully develop and implement new manufacturing technologies or develop, introduce and sell new products. Intense competition in the semiconductor industry may reduce the demand for our products or the prices of our products, which could reduce our revenues and gross profits. Our results of operations have been adversely affected by global economic slowdowns in the past. Downturns in the semiconductor industry, rapidly changing technology, accelerated selling price erosion and evolving industry standards can harm our operating results. Our potential future acquisitions may not be successful. The trading price of our common stock and our operating results are likely to fluctuate substantially in the future. Implementation of Financial Accounting Standards Board ( FASB ) rules for the accounting of equity instruments and the issuance of new laws or other accounting regulations, or reinterpretation of existing laws or regulations, could materially impact our business or stated results. We and our independent registered public accounting firm previously determined that we had material weaknesses in our internal control over financial reporting. There can be no assurance that a material weakness will not arise in the future. As a result, current and potential stockholders could lose confidence in our financial reporting, which would harm our business and the trading price of our stock. Customer demand for our products is volatile and difficult to predict. Changes to environmental laws and regulations applicable to manufacturers of electrical and electronic equipment are causing us to redesign our products, and may increase our costs and expose us to liability. Our contracts with our wafer suppliers do not obligate them to a minimum supply or set prices. Any inability or unwillingness of our wafer suppliers generally, and Chartered Semiconductor Manufacturing Ltd. and MagnaChip Semiconductor, Inc. in particular, to meet our manufacturing requirements would delay our production and product shipments and harm our business. We depend on single or limited source assembly subcontractors with whom we do not have written contracts. Any inability or unwillingness of our assembly subcontractors to meet our assembly requirements would delay our product shipments and harm our business. We may have difficulty accurately predicting revenues for future periods. We compete with others to attract and retain key personnel, and any loss of or inability to attract key personnel would harm us. Our limited ability to protect our intellectual property and proprietary rights could harm our competitive position. We may not provide adequate allowances for exchanges, returns and concessions. We are subject to risks related to taxes. The complexity of our products makes us susceptible to manufacturing problems, which could increase our costs and delay our product shipments. A large portion of our revenues is derived from sales to a few customers, who may cease purchasing from us at any time. Almost all of our wafer suppliers and assembly subcontractors are located in Southeast Asia, which exposes us to the problems associated with international operations. Because we sell our products to customers outside of the United States, we face foreign business, political and economic risks that could seriously harm us. Our shareholder rights plan may adversely affect existing shareholders. Our operations and financial results could be severely harmed by natural disasters.

Full 10-K form ▸

1001426--9/11/2008--PERICOM_SEMICONDUCTOR_CORP