1042825--3/16/2007--POWER_ONE_INC

related topics
{customer, product, revenue}
{product, market, service}
{property, intellectual, protect}
{condition, economic, financial}
{cost, regulation, environmental}
{operation, international, foreign}
{provision, law, control}
{acquisition, growth, future}
{control, financial, internal}
{personnel, key, retain}
{stock, price, share}
{gas, price, oil}
Changes in demand or downturns in the volatile and cyclical communications infrastructure and server/storage industries could affect our business and profitability. We face intense industry competition, price erosion and product obsolescence, which, in turn, could reduce our profitability. Our inventory levels may be too high or too low, reducing our profitability. Failure to anticipate trends in the mix of power conversion products that our customers will demand may adversely affect our business. 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, or a change in our product mix, could reduce our net income and operating results. Interruptions in manufacturing of our products may impair our business and profitability. Environmental, health and safety laws may restrict our operations. We are subject to credit risks. We face, and might in the future face, intellectual property infringement claims that might be costly to resolve. Actions by our competitors and by foreign governments could undermine our intellectual property rights, which in turn could adversely affect our results. We are subject to risks associated with 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. Market fluctuations or volatility could cause the trading price of our common stock to decline and limit our ability to raise capital. We are subject to internal control evaluations and attestation requirements of Section 404 of the Sarbanes-Oxley Act.

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