1069353--12/13/2006--CONEXANT_SYSTEMS

related topics

{customer, product, revenue}

{product, market, service}

{property, intellectual, protect}

{tax, income, asset}

{system, service, information}

{cost, regulation, environmental}

{personnel, key, retain}

{acquisition, growth, future}

{provision, law, control}

{control, financial, internal}

{operation, international, foreign}

{financial, litigation, operation}

{stock, price, share}

{competitive, industry, competition}

{product, liability, claim}

We may be subject to claims of infringement of third-party intellectual property rights or demands that we license third-party technology, which could result in significant expense and loss of our ability to use, make, sell, export or import our products or one or more components comprising our products. The value of our common stock may be adversely affected by market volatility. We have recently incurred substantial losses and we anticipate additional future losses. We are subject to intense competition. The loss of a key customer could seriously impact our revenue levels and harm our business. In addition, if we are unable to continue to sell existing and new products to our key customers in significant quantities or to attract new significant customers, our future operating results could be adversely affected. Our success depends on our ability to timely develop competitive new products and reduce costs. We are subject to the risks of doing business internationally. We may not be able to keep abreast of the rapid technological changes in our markets. We may not be able to attract and retain qualified management, technical and other personnel necessary for the design, development and sale of our products. Our success could be negatively affected if key personnel leave. If OEMs of communications electronics products do not design our products into their equipment, we will be unable to sell those products. Moreover, a design win from a customer does not guarantee future sales to that customer. Because of the lengthy sales cycles of many of our products, we may incur significant expenses before we generate any revenues related to those products. Uncertainties involving the ordering and shipment of our products could adversely affect our business. We are dependent upon third parties for the manufacture, assembly and test of our products. We may experience difficulties in transitioning to smaller geometry process technologies or in achieving higher levels of design integration, which may result in reduced manufacturing yields, delays in product deliveries, increased expenses and loss of design wins to our competitors. If we are not successful in protecting our intellectual property rights, it may harm our ability to compete. Uncertainties involving litigation could adversely affect our business. Our success depends, in part, on our ability to effect suitable investments, alliances and acquisitions. We have significant goodwill and intangible assets, and future impairment of our goodwill and intangible assets could have a material negative impact on our financial condition and results of operations. We may be liable for penalties under environmental laws, rules and regulations, which could adversely impact our business. We may be limited in the future in the amount of net operating losses that we can use to offset taxable income. Provisions in our organizational documents and rights agreement and Delaware law may make it difficult for someone to acquire control of us.

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1069353--12/13/2006--CONEXANT_SYSTEMS_INC