1103777--3/15/2006--SIRENZA_MICRODEVICES

related topics

{customer, product, revenue}

{product, market, service}

{acquisition, growth, future}

{stock, price, operating}

{cost, regulation, environmental}

{property, intellectual, protect}

{operation, international, foreign}

{cost, operation, labor}

{tax, income, asset}

{capital, credit, financial}

{personnel, key, retain}

{financial, litigation, operation}

{control, financial, internal}

{regulation, change, law}

{regulation, government, change}

We may not be able to consummate our pending acquisition of PDI. If we do finalize our acquisition of PDI, the acquisition may not be successfully integrated or produce the results we anticipate. We have a history of significant operating losses. If we are unable to increase our gross profit sufficiently to offset our operating expenses, we may be unable to maintain our profitability. Our operating results will fluctuate and we may not meet quarterly financial expectations, which could cause our stock price to decline. Our gross margin will fluctuate from period to period, and such fluctuation could affect our financial performance, particularly earnings and/or loss per share, in turn potentially decreasing our stock price. Our results may suffer if we are not able to accurately forecast demand for our products. We depend on a relatively small number of customers for a significant portion of our net revenues. The loss of any of these customers could adversely affect our net revenues. If the satellite radio market does not grow or grows at a slow rate, or if our relationship with Sirius weakens, our results of operations may suffer. Our growth depends on the growth of the wireless and wireline communications infrastructure market. If this market does not grow, or if it grows at a slow rate, demand for our products may fail to grow or diminish. Sales of our products have been affected by a pattern of product price decline, which can harm our business. Product quality, performance and reliability problems could disrupt our business and harm our financial condition and results of operations. New accounting standards related to equity compensation are expected to adversely affect our earnings and could have other adverse impacts. Our strategic investment in GCS, a privately held semiconductor foundry, could be further impaired or never redeemed, which could have a material adverse impact on our results of operations Our reliance on foreign suppliers and manufacturers and our pending acquisition of PDI exposes us to the economic and political risks of the countries in which they are located. Failure to maintain effective internal controls over financial reporting could adversely affect our business and the market price of our stock. We expect to make future acquisitions, which involve numerous risks. If we fail to introduce new products in a timely and cost-effective manner, our ability to sustain and increase our net revenues could suffer. Our efforts to diversify our product portfolio and expand into new markets have attendant execution risk. Our reliance on third-party wafer fabs to manufacture our semiconductor wafers may cause a significant delay in our ability to fill orders and limits our ability to assure product quality and to control costs. Our reliance on subcontractors to package our products could cause a delay in our ability to fulfill orders or could increase our cost of revenues. We may not be able to outsource the manufacture and test of our products on favorable terms, or at all, and even successful outsourcing creates risk due to our resulting reliance on vendors. Intense competition in our industry could prevent us from increasing net revenues and sustaining profitability. A substantial portion of our products are sold to international customers, which exposes us to numerous risks. Sources for certain components and materials are limited, which could result in delays or reductions in product shipments. We may experience difficulties in managing any future growth. Our products could infringe the intellectual property rights of others, and resulting claims against us could be costly and require us to enter into disadvantageous license or royalty arrangements. Recent changes in environmental laws and regulations applicable to manufacturers of electrical and electronic equipment have required us to redesign some of our products, and may increase our costs and expose us to liability. Environmental regulations could subject us to substantial costs or fines, or require us to suspend production, alter manufacturing processes or cease operations at one or more sites. We have a material amount of goodwill and long-lived assets, including finite-lived acquired intangible assets, which, if impaired, could materially and adversely affect our results of operations. If we lose our key personnel or are unable to attract and retain key personnel, we may be unable to pursue business opportunities or develop our products. The outcome of litigation in which we have been named as a defendant is unpredictable and an adverse decision in any such matter could have a material adverse effect on our business, financial position and results of operations. The timing of the adoption of industry standards may negatively impact widespread market acceptance of our products. We face several risks associated with our Aerospace and Defense division. Our limited ability to protect our proprietary information and technology may adversely affect our ability to compete. Some of our stockholders can exert control over us, and they may not make decisions that reflect our interests or those of other stockholders.

Full 10-K form ▸

1103777--3/15/2006--SIRENZA_MICRODEVICES_INC