70530--7/29/2009--NATIONAL_SEMICONDUCTOR

related topics

{operation, international, foreign}

{condition, economic, financial}

{customer, product, revenue}

{property, intellectual, protect}

{cost, regulation, environmental}

{product, liability, claim}

{debt, indebtedness, cash}

{acquisition, growth, future}

{operation, natural, condition}

{competitive, industry, competition}

{personnel, key, retain}

{tax, income, asset}

{cost, operation, labor}

RISK FACTORS RELATING TO GENERAL BUSINESS CONDITIONS Significant deterioration in the global business environment has reduced demand for our products, and our business has been and may continue to be adversely affected. A large portion of our revenues is dependent on the wireless handset market. Conditions inherent in the semiconductor industry may cause periodic fluctuations in our operating results. Our business will be harmed if we are unable to compete successfully in our markets. RISK FACTORS RELATING TO INTERNATIONAL OPERATIONS We operate in the global marketplace and face risks associated with worldwide operations. Global disruptions and events which could adversely affect our financial performance and operating results. We have significant manufacturing operations in China and Malaysia, and, as a result, are subject to risks. We are subject to fluctuations in the exchange rate of the U.S. dollar and foreign currencies. We are subject to export restrictions and laws affecting trade and investments. RISK FACTORS RELATING TO SALES AND OPERATIONS Our performance depends on the availability and cost of raw materials, utilities, critical manufacturing equipment and third-party manufacturing services. A substantial portion of our sales are made to distributors and the termination of an agreement with one or more distributors could result in a negative impact on our business. Our profit margins may vary over time. We make forecasts of customer demand that may be inaccurate. We are subject to warranty claims, product recalls and product liability. We may be harmed by natural disasters and other disruptions. RISK FACTORS RELATING TO R D, INTELLECTUAL PROPERTY AND LITIGATION We may experience delays in introducing new products or market acceptance of new products may be below our expectations. Our products are dependent on the use of intellectual property that we need to protect We are subject to litigation risks. RISK FACTORS RELATED TO OUR DEBT Increased leverage may harm our financial condition and results of operations. Difficulties in the credit markets may limit our ability to refinance our debt as it becomes due. Increases in interest rates could adversely affect our financial condition. RISK FACTORS RELATING TO PERSONNEL AND MERGER AND ACQUISITION ACTIVITY We may not be able to attract or retain employees with skills necessary to remain competitive in our industry. We may pursue acquisitions, investments and divestitures that could harm our operating results and may disrupt our business. RISK FACTORS RELATING TO TAX AND ENVIRONMENTAL REGULATIONS We may be affected by higher than expected tax rates or exposure to additional income tax liabilities. We are subject to many environmental laws and regulations.

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70530--7/29/2009--NATIONAL_SEMICONDUCTOR_CORP