1095600--6/22/2009--BLUE_COAT_SYSTEMS

related topics

{product, market, service}

{customer, product, revenue}

{property, intellectual, protect}

{acquisition, growth, future}

{system, service, information}

{stock, price, share}

{operation, international, foreign}

{product, liability, claim}

{stock, price, operating}

{cost, operation, labor}

{tax, income, asset}

{personnel, key, retain}

{control, financial, internal}

{operation, natural, condition}

{condition, economic, financial}

{financial, litigation, operation}

Our quarterly operating results fluctuate significantly, are difficult to predict and may not meet our guidance or third party expectations. Economic uncertainty and adverse macroeconomic conditions may harm our business. The market for Application Delivery Network infrastructure products and services is intensely competitive and certain of our competitors have greater resources. We rely significantly on third party sales channel partners to sell our products. We depend on single and, in some cases, limited source suppliers for several key products and components of products. We are dependent on original design manufacturers, contract manufacturers and third party logistics providers to design and manufacture our products and to fulfill orders for our products. If we fail to accurately predict our manufacturing requirements and manage our supply chain we could incur additional costs or experience manufacturing delays that could harm our business. We may not be able to successfully manage the growth of our business and may suffer other losses if we are unable to improve our systems and processes. Third parties may bring legal actions against us. Our gross margin is affected by a number of factors, and we may not be able to sustain it at present levels. Our products or services may be found to infringe third party intellectual property rights. We must anticipate market needs, and develop and introduce new products and enhancements to rapidly meet those needs. Our internal investments in research and development may not yield the benefits we anticipate. We must continue to develop market awareness of our market, our company and our products and services. Product quality problems may result in delayed market acceptance, additional costs, reduced sales or litigation. Our ability to sell our products depends on the quality of our support and services offerings. Our acquisitions may not provide the benefits we anticipate and may disrupt our existing business. We must attract, assimilate and retain key personnel on a cost-effective basis. Our international operations expose us to risks. Forecasting our estimated annual effective tax rate is complex and subject to uncertainty, and there may be material differences between our forecasted and actual tax rates. Our internal investments in our sales organization may not yield the benefits we anticipate. We rely on technology that we license from third parties, including software that is integrated with internally developed software and used with our products. We issued convertible notes to fund our acquisition of Packeteer, which could impact our liquidity. We may be unable to raise additional capital. If the protection of our proprietary technology is inadequate, our competitors may gain access to our technology. We are subject to various governmental regulations that could subject us to liability or impair our ability to compete in international markets. Changes in our global fulfillment model may harm our business. Our operations could be significantly hindered by the occurrence of a natural disaster, terrorist attack or other catastrophic event. Third party product developments may impact the value of our products to users. The market price of our stock is volatile, and is likely to be volatile in the future. We have a history of losses and profitability could be difficult to sustain. The legal environment in which we operate is uncertain and claims against us could cause our business to suffer.

Full 10-K form ▸

1095600--6/22/2009--BLUE_COAT_SYSTEMS_INC