1050550--3/5/2008--VOLTERRA_SEMICONDUCTOR

related topics

{customer, product, revenue}

{product, market, service}

{property, intellectual, protect}

{acquisition, growth, future}

{system, service, information}

{operation, international, foreign}

{stock, price, operating}

{cost, regulation, environmental}

{operation, natural, condition}

{product, liability, claim}

{competitive, industry, competition}

{personnel, key, retain}

{condition, economic, financial}

We depend on a small number of customers for substantially all of our net revenue and the loss of, or a significant reduction in orders from, any of them would significantly reduce our net revenue and adversely affect our operating results. We depend on a limited number of markets, and in these markets we have experienced varying order patterns, and if demand for our products in these markets declines, or if we are unable to adjust to the varying order patterns in these markets or expand into new markets, our business would be harmed. We sell a limited number of products and a reduction in demand for these products would harm our business and operating results. We are subject to inventory risks and manufacturing costs that could negatively impact our operating results. Our products are highly complex and may require modifications to resolve previously undetected design or process errors or defects and to meet our customers specifications, which could lead to an increase in our costs, a loss of revenue and customers, a delay in market acceptance of our products, or product liability claims. Our dependence on third-party semiconductor manufacturers, or foundries, reduces our control over the manufacture of our products, which could harm our business. We rely on third-party subcontractors to assemble and test our products and our failure to successfully manage our relationships with these subcontractors could damage our relationships with our customers, decrease our net revenue, and limit our growth. We face significant competition and many of our competitors have greater resources than we have, and thus we may be unsuccessful in competing against current and future competitors. If we are unable to timely develop new products or new generations and versions of our existing products that achieve market acceptance, our operating results and competitive position could be harmed. We have experienced, and may in the future experience, delays in the development and introduction of our products, which may harm our business and operating results. The nature of the design process requires us to incur expenses prior to earning revenue associated with those expenses, and we will have difficulty selling our products and generating profits if electronic system designers do not design our products into their electronic systems. Our ability to compete will be harmed if we are unable to adequately protect our intellectual property. Assertions by third parties of infringement by us or our vendors of their intellectual property rights could result in significant costs and cause our operating results to suffer. Any potential dispute involving our patents or other intellectual property could also include our customers, which could trigger our indemnification obligations to them and result in substantial expense to us. We are subject to the highly cyclical nature of the semiconductor industry and any future downturns could significantly harm our business. We rely primarily on a small number of distributors to market and distribute our products, and if we fail to maintain or expand these relationships, our net revenue would likely decline. Any disruption to our operations or the operations of our foundries or assembly and test subcontractors resulting from earthquakes, droughts, or other natural disasters, public health issues or other catastrophic events beyond our control could significantly delay the production or shipment of our products. The average selling prices of our products could decrease rapidly, which may negatively impact our net revenue and operating results. We have significant international activities and customers, and plan to continue such efforts, which subjects us to additional business risks including increased logistical complexity, additional regulatory restrictions and political instability. We do not hedge fluctuations in currency exchange rates, which could harm our financial results. Environmental laws and regulations could cause a disruption in our business and operations. We rely on the services of our key personnel, and if we are unable to retain our current personnel and hire additional personnel, our ability to develop and successfully market our products could be harmed. If we do not effectively manage our growth, our resources, systems, and controls may be strained and our operating results may suffer. If our computer and communications hardware fails, our business, results of operations and financial condition would be harmed. We may undertake acquisitions to expand our business that may pose risks to our business and dilute the ownership of our existing stockholders. Our stock price will fluctuate and may be volatile, which could result in substantial losses for investors and significant costs related to litigation. We may need to raise additional capital, which might not be available or which, if available, may be on terms that are not favorable to us. Our principal stockholders have significant voting power and may influence actions that may not be in the best interests of our other stockholders.

Full 10-K form ▸

1050550--3/5/2008--VOLTERRA_SEMICONDUCTOR_CORP