1101302--3/16/2007--ENTEGRIS_INC

related topics
{customer, product, revenue}
{product, market, service}
{property, intellectual, protect}
{stock, price, operating}
{provision, law, control}
{regulation, change, law}
{operation, international, foreign}
{condition, economic, financial}
{operation, natural, condition}
{cost, regulation, environmental}
{personnel, key, retain}
{product, liability, claim}
{cost, operation, labor}
{acquisition, growth, future}
{control, financial, internal}
{tax, income, asset}
{stock, price, share}
Risks Relating to our Business and Industry The semiconductor industry has historically been highly cyclical, and industry downturns reduce revenue and profits. The semiconductor industry is subject to rapid demand shifts which are difficult to predict. As a result, our inability to meet demand in response to these rapid shifts may cause a reduction in our market share. Our annual and quarterly operating results are subject to fluctuations as a result of rapid demand shifts and our insignificant level of backlog and if we fail to meet the expectations of securities analysts or investors, the market price of our securities may decrease significantly. We may not be able to accurately forecast demand for our products. Semiconductor industry up-cycles may not reach historic levels but instead may reflect a lower rate of long-term growth, similar to the electronics industry. If we are unable to maintain our technological expertise in design and manufacturing processes, we will not be able to successfully compete. Because our sales are concentrated on a small number of key customers, our revenue and profitability may materially decline if one or more of our key customers do not continue to purchase our existing and new products in significant quantities. Because we are subject to order and shipment uncertainties and many of our costs are fixed, any significant changes, cancellations or deferrals of orders or shipments could cause our revenue and profitability to decline or fluctuate. Competition from existing or new companies in the microelectronics industry could cause us to experience downward pressure on prices, fewer customer orders, reduced margins, the inability to take advantage of new business opportunities and the loss of market share. Competition in the semiconductor and data storage materials integrity management fields could intensify, which may limit our ability to maintain and increase our market share and raise prices. Lack of market acceptance of our 300 mm shipper products as well as our other products could harm our operating results. We may acquire other businesses, form joint ventures or divest businesses that could negatively affect our profitability, increase our debt and dilute your ownership of our company. Our dependence on single and limited source suppliers could affect our ability to manufacture our products. Our production processes are becoming increasingly complex, and our production could be disrupted if we are unable to avoid manufacturing difficulties. We may lose sales if we are unable to timely procure, repair or replace capital equipment necessary to manufacture many of our products. We incur significant cash outlays over long-term periods in order to research, develop, manufacture and market new products, which may never reach market or may have limited market acceptance. We are subject to a variety of environmental laws which could cause us to incur significant expenses. We are continually evaluating our manufacturing operations within our plants in order to achieve efficiencies and gross margin improvements. If we are unable to successfully manage transfers or realignments of our manufacturing operations, our ability to deliver product to our customers could be disrupted and our business, financial condition and results of operations could be adversely affected. Loss of our key personnel could hurt our business because of their experience in the microelectronics industry and their technological expertise. Similarly, our inability to attract and retain new qualified personnel could inhibit our ability to operate and grow our business successfully. If we are unable to protect our intellectual property rights, our business and prospects could be harmed. Protection of our intellectual property rights has and may continue to result in costly litigation. If we infringe on the proprietary technology of others, our business and prospects could be harmed. We conduct a significant amount of our sales activity and manufacturing efforts outside the United States, which subjects us to additional business risks and may cause our profitability to decline due to increased costs. Fluctuations in the value of the U.S. dollar in relation to other currencies may lead to lower net income or may cause us to raise prices, which could result in reduced net sales. We may have exposure to income tax rate fluctuations as well as to additional tax liabilities, which would impact our financial position. An increased concentration of wafer manufacturing in Japan could result in lower sales of our wafer shipper products. Terrorist attacks, such as the attacks that occurred in New York and Washington, D.C. on September 11, 2001, and other acts of violence or war may affect the markets in which we operate and hurt our profitability. Risks Related to the Securities Markets and Ownership of our Securities Because of the past volatility of the stock price of Entegris Minnesota and Mykrolis, the price of our common stock in the future may likewise be volatile so that the ability to trade our common shares may be adversely affected and our ability to raise capital through future equity financing may be reduced. Recently enacted changes in the securities laws and regulations are likely to increase our costs. If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results. As a result, current and potential stockholders could lose confidence in our financial reporting, which would harm our business and the trading price of our stock. Changes to financial accounting standards may affect our reported results of operations and could result in a decrease in the value of your shares. Provisions in our charter documents, Delaware law and our shareholder rights plan may delay or prevent an acquisition of us, which could decrease the value of your shares. Your percentage ownership in us may be diluted by future issuances of capital stock, which could reduce your influence over matters on which stockholders vote.

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