21535--2/23/2010--COHU_INC

related topics
{customer, product, revenue}
{product, market, service}
{condition, economic, financial}
{operation, international, foreign}
{operation, natural, condition}
{property, intellectual, protect}
{personnel, key, retain}
{loan, real, estate}
{cost, regulation, environmental}
Semiconductor equipment is subject to rapid technological change, product introductions and transitions may result in inventory write-offs and our new product development involves numerous risks and uncertainties. Global economic conditions may have an impact on our business and financial condition in ways that we currently cannot predict. A limited number of customers account for a substantial percentage of our net sales. We do not participate in the DRAM test handler market. If we cannot continue to develop, manufacture and market products and services that meet customer requirements for innovation and quality, our revenue and gross margin may suffer. The cyclical nature of the semiconductor equipment industry places enormous demands on our employees, operations and infrastructure. The loss of key personnel could adversely impact our business. Compliance with regulations may impact sales to foreign customers. We are exposed to the risks of operating a global business. We utilize contract manufacturers and changes to those relationships, expected or unexpected, may result in delays or disruptions that could cause us to lose revenue and damage our customer relationships. Failure of critical suppliers to deliver sufficient quantities of parts in a timely and cost-effective manner could adversely impact our operations. We are exposed to risks associated with acquisitions and investments. Third parties may violate our proprietary rights or accuse us of infringing upon their proprietary rights. A majority of our revenues are generated from exports to foreign countries, primarily in Asia, that are subject to economic and political instability and we compete against a number of Asian test handling equipment suppliers. The occurrence of natural disasters in Asia may adversely impact our operations and sales.

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