1130866--2/28/2008--HITTITE_MICROWAVE

related topics

{customer, product, revenue}

{stock, price, operating}

{product, market, service}

{cost, operation, labor}

{acquisition, growth, future}

{property, intellectual, protect}

{control, financial, internal}

{regulation, government, change}

{cost, regulation, environmental}

{condition, economic, financial}

{personnel, key, retain}

{competitive, industry, competition}

{product, liability, claim}

{provision, law, control}

{operation, international, foreign}

{regulation, change, law}

{financial, litigation, operation}

Our quarterly revenue and operating results are difficult to predict accurately and may fluctuate significantly from period to period. As a result, we may fail to meet the expectations of investors, which could cause our stock price to decline. We may be unable to sustain our historical revenue growth rate. If revenue growth falls short of our expectations, we may not be able immediately to reduce our operating expenses proportionately, which could reduce our profitability. Our gross margins fluctuate from period to period, and such fluctuation could affect our results of operations, which could harm our stock price. If we fail to develop new products that achieve market acceptance or fail to introduce new products that enable us to address additional markets, our operating results could be adversely affected. We depend on third-party suppliers, including our foundries and packaging subcontractors, for components, materials and services that are critical to the manufacture of our products, which makes us susceptible to shortages, price fluctuations and quality risks that could adversely affect our operating results. Operations at our Chelmsford, Massachusetts facility that are critical to our business are subject to disruption from a variety of causes, including those that may be beyond our control. We design and manufacture products in our standard product line based upon our internal assessment and forecasts of market requirements, and our results of operations will be adversely affected if we fail to assess market requirements accurately. We design custom products to meet specific requirements of our customers. The amount and timing of revenue from such products can cause fluctuations in our quarterly operating results. We rely on a small number of customers for a significant percentage of our revenue, and the loss of, or a reduction in, orders from these customers could result in a decline in revenue. Our failure to continue to keep pace with new or improved semiconductor process technologies could impair our competitive position. Our business depends on international customers, suppliers and operations, and as a result we are subject to regulatory, operational, financial and political risks which could adversely affect our financial results. The segment of the semiconductor industry in which we participate is intensely competitive, and our inability to compete effectively would harm our business. We rely on the significant experience and specialized expertise of our senior management and engineering staff and must retain and attract qualified engineers and other highly skilled personnel in order to grow our business successfully. Our business could be adversely affected if we experience product returns, product liability and defects claims. We may not be able to effectively manage our growth, and we may need to incur significant expenditures to address the additional operational and control requirements of our growth, either of which could harm our business and operating results. We could be subject to claims that we are infringing third-party intellectual property rights, which could result in costly and lengthy litigation that could harm our business. We use specialized technologies and know-how to design, develop and manufacture our products. Our inability to protect our intellectual property could hurt our competitive position, harm our reputation and adversely affect our results of operations. We generate a portion of our revenue from sales made by third parties, including our independent sales representatives and our distributor, and the failure to manage successfully our relationships with these third parties could cause our revenue to decline and harm our business. We may pursue acquisitions and investments in new businesses, products or technologies that involve numerous risks, which could disrupt our business and may harm our financial condition. Our financial results are exposed to the cyclicality of the semiconductor industry, and as a result, we may experience reduced revenue or operating income during any future semiconductor industry downturn. If our principal end markets fail to grow or experience declines, our revenue may suffer. If we fail to comply with export control regulations we could be subject to substantial fines, or other sanctions. If we fail to comply with government contracting regulations, we could suffer a loss of revenue or incur price adjustments or other penalties. If we fail to comply with environmental regulations we could be subject to substantial fines or be required to suspend production, alter manufacturing processes or cease operations. Dr. Ayasli, our founder and principal stockholder, controls approximately 38% of our voting power, and is able to exert significant control over the outcome of director elections and other matters requiring stockholder approval, including a change in corporate control. We will incur increased costs and demands upon management as a result of complying with the laws and regulations affecting public companies, which could adversely affect our operating results. We are required to evaluate our internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002, and any adverse results from such evaluation could result in a loss of investor confidence in our financial reports and have an adverse effect on our stock price. We could be the subject of securities class action litigation due to future stock price volatility, which could divert management's attention and adversely affect our results of operations. Anti-takeover provisions in our charter documents and Delaware law could prevent or delay a change in control of our company that stockholders may consider beneficial and may adversely affect the price of our stock.

Full 10-K form ▸

1130866--2/28/2008--HITTITE_MICROWAVE_CORP