1042825--3/14/2006--POWER_ONE_INC

related topics
{customer, product, revenue}
{product, market, service}
{property, intellectual, protect}
{operation, international, foreign}
{acquisition, growth, future}
{provision, law, control}
{personnel, key, retain}
{capital, credit, financial}
A significant percentage of our revenue is generated from customers in the volatile communications infrastructure industry. If our customers in this industry do not maintain their level of purchases from us, our operating results may be materially adversely affected. Price erosion may have a material adverse effect on our margins and profitability. Failure to anticipate trends in the type of power conversion products our customers will demand may adversely affect our business. We may not be able to procure necessary key components for our products. Vendor managed inventory programs give rise to variability in our revenue and operating results. Cancellations, reductions or delays in purchases could cause our quarterly results to fluctuate. We rely on a few major customers for a material portion of our business and the loss of any of those customers could reduce our net income and operating results. We are subject to credit risks. We face, and might in the future face, intellectual property infringement claims that might be costly to resolve. Any failure to protect our intellectual property could have a material adverse effect on our business; costs associated with enforcing our rights could adversely affect our results. We are subject to risks associated with future company and technology acquisitions, divestitures, joint ventures and strategic investments. Our success depends on our ability to retain our senior management and to attract and retain key technical personnel. Much of our business is subject to risks associated with operations in foreign countries. We may fail to capture customers in the new markets that we are pursuing. Our charter contains provisions that may hinder or prevent a change in control of our company.

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