1022652--3/16/2009--NOVATEL_WIRELESS

related topics

{product, market, service}

{customer, product, revenue}

{property, intellectual, protect}

{operation, international, foreign}

{acquisition, growth, future}

{condition, economic, financial}

{product, liability, claim}

{personnel, key, retain}

{regulation, change, law}

{control, financial, internal}

{stock, price, operating}

{stock, price, share}

{product, candidate, development}

{regulation, government, change}

{capital, credit, financial}

The continuing global financial crisis and current uncertainty in global economic conditions could have a material adverse effect on our results of operations and financial condition. The market for wireless broadband data access products is rapidly evolving and highly competitive. We may be unable to compete effectively. Our failure to predict and comply with evolving wireless industry standards, including 3G standards, could hurt our ability to introduce and sell new products. If we fail to develop and introduce new products successfully, we may lose key customers or product orders and our business could be harmed. If we fail to develop and maintain strategic relationships, we may not be able to penetrate new markets. We expect to continue to depend upon only a small number of our customers for a substantial portion of our revenues. Our business could be negatively affected by an adverse change in our dealings with these customers. The sale of our products depends on the demand for broadband wireless access to enterprise networks and the Internet. The marketability of our products may suffer if wireless telecommunications operators do not deliver acceptable wireless services. If we do not properly manage the development of our business, we may experience significant strains on our management and operations and disruptions in our business. We currently rely on third parties to manufacture our products, which exposes us to a number of risks and uncertainties outside our control. We might forecast customer demand incorrectly and order the manufacture of excess or insufficient quantities of particular products. We depend on sole source suppliers for some components used in our products. The availability and sale of those finished products would be harmed if any of these suppliers is not able to meet our demand and production schedule and alternative suitable components are not available on acceptable terms, if at all. Third parties may claim that our products, or components within our products, infringe on their intellectual property rights. These claims may result in substantial costs, diversion of resources and management attention, harm to our reputation or interference with our current or prospective customer or supplier relations. Our business depends on our continued ability to license necessary third-party technology, which we may not be able to do or it may be expensive to do so. We are subject to the risks of doing business internationally. To the extent we enter into contracts that are denominated in foreign currencies and do not adequately hedge that exposure, fluctuations in exchange rates between the United States dollar and foreign currencies may affect our operating results. Our products may contain errors or defects, which could prevent or decrease their market acceptance and lead to unanticipated costs or other adverse business consequences. Our quarterly operating results may vary significantly from quarter to quarter and may cause our stock price to fluctuate. We may not be able to maintain and expand our business if we are not able to hire, retain and manage additional qualified personnel. Any acquisitions we make could disrupt our business and harm our financial condition and results of operations. Any changes to existing accounting pronouncements or taxation rules or practices may cause adverse fluctuations in our reported results of operations or affect how we conduct our business. We may not be able to develop products that comply with applicable government regulations. A material weakness in our internal control over financial reporting could result in a material misstatement of our financial statements. Failure to satisfy the listing requirements of the Nasdaq Global Select Market could result in our common stock being delisted, which may have an adverse effect on our stock price. We are currently party to litigation that could be costly to defend and distracting to management. The current global credit crisis may cause the securities in our investment portfolio to decline in value or affect the liquidity of these securities, which may have a material adverse impact on our ability to support our working capital needs.

Full 10-K form ▸

1022652--3/16/2009--NOVATEL_WIRELESS_INC