1042825--3/17/2010--POWER_ONE

related topics

{customer, product, revenue}

{condition, economic, financial}

{control, financial, internal}

{stock, price, share}

{product, market, service}

{gas, price, oil}

{regulation, change, law}

{debt, indebtedness, cash}

{financial, litigation, operation}

{system, service, information}

{acquisition, growth, future}

{property, intellectual, protect}

{operation, international, foreign}

{provision, law, control}

{cost, regulation, environmental}

{personnel, key, retain}

{cost, operation, labor}

Changes in demand or downturns in renewable energy market, communications infrastructure and server/storage industries could affect our business and profitability. Feed-in tariff cuts could impact revenue growth in the renewable energy markets. Failure to anticipate trends in the mix of renewable energy and power conversion products that our customers will demand may adversely affect our business. We may fail to capture customers in the new markets that we are pursuing. Cancellations, reductions or delays in purchases could cause our quarterly results to fluctuate. Vendor managed inventory programs give rise to variability in our revenue and operating results. 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. We have experienced manufacturing and supply chain problems that have caused an inability to deliver product on time. 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. We have taken, and continue to take, cost-reduction measures. Our ability to complete these measures and the impact of such actions on our business may be limited by a variety of factors and could have a negative effect on our business. Much of our business is subject to risks associated with operations in foreign countries. Environmental, health and safety laws may restrict our operations. Our success depends on our ability to retain our senior management and to attract and retain key personnel. Failure of our information technology infrastructure to operate effectively could adversely affect our business. We have a history of operating losses and our future profitability is uncertain; this may have a harmful effect on our business and the value of our common stock. We may face liquidity challenges to meet our debt obligations and capital expenditures, and may require additional funding in the future. A prolonged economic slowdown or a lengthy or severe recession could hurt our operations, particularly if it results in a decline in profitability in the communications infrastructure and server/storage industries. The conversion of our security instruments may result in the dilution of the ownership interests of our existing stockholders. Tax positions taken or failure to accumulate and consider relevant tax information may result in non-compliance with tax regulations or adverse tax consequences. We are subject to credit risks. 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 risks associated with future company and technology acquisitions, divestitures, joint ventures and strategic investments. We face, and might in the future face, intellectual property infringement claims by competitors and actions by foreign governments that could adversely affect our intellectual property rights, which in turn could adversely affect our results. Pending or future litigation could have a material adverse effect on our operating results and financial condition. We are subject to internal control evaluations and attestation requirements of Section 404 of the Sarbanes-Oxley Act. We have in place a stockholder's right plan, and certain provisions in our charter documents and Delaware law may hinder or prevent a change in control of our company.

Full 10-K form ▸

1042825--3/17/2010--POWER_ONE_INC