711065--5/12/2010--APPLIED_MICRO_CIRCUITS

related topics

{product, market, service}

{customer, product, revenue}

{acquisition, growth, future}

{cost, operation, labor}

{system, service, information}

{property, intellectual, protect}

{cost, regulation, environmental}

{stock, price, operating}

{stock, price, share}

{operation, natural, condition}

{condition, economic, financial}

{control, financial, internal}

{personnel, key, retain}

{provision, law, control}

{loan, real, estate}

{competitive, industry, competition}

{operation, international, foreign}

If we are unable to timely develop new products or new generations and versions of our existing products to replace our current products, our operating results and competitive position will be materially harmed. Our dependence on third-party manufacturing and supply relationships increases the risk that we will not have an adequate supply of products to meet demand or that our cost of materials will be higher than expected. We may experience difficulties in transitioning to smaller geometry process technologies or in achieving higher levels of design integration and that may result in reduced manufacturing yields, delays in product deliveries and increased expenses. The gross margins for our products could decrease rapidly or not increase as forecasted, which will negatively impact our operating results. The current economic circumstances and uncertain political conditions could harm our revenues, operating results and financial condition. Our operating results may fluctuate because of a number of factors, many of which are beyond our control. Our business, financial condition and operating results would be harmed if we do not achieve anticipated revenues. Our business substantially depends upon the continued growth of the technology sector and the Internet. The loss of one or more key customers, the diminished demand for our products from a key customer, or the failure to obtain certifications from a key customer or its distribution channel could significantly reduce our revenues and profits. There is no guarantee that design wins will become actual orders and sales. Any significant order cancellations or order deferrals could cause unplanned inventory growth resulting in excess inventory which may adversely affect our operating results. Our customers products typically have lengthy design cycles. A customer may decide to cancel or change its product plans, which could cause us to lose anticipated sales. An important part of our strategy is to focus on the markets for communications equipment. If we change strategy or are unable to further expand our share of these markets or react timely or properly to emerging trends, our revenues may not grow and could decline. Our business strategy contemplates the acquisition of other companies, products and technologies. Merger and acquisition activities involve numerous risks and we may not be able to address these risks successfully without substantial expense, delay or other operational or financial problems. Our industry and markets are subject to consolidation, which may result in stronger competitors, fewer customers and reduced demand. Our operating results are subject to fluctuations because we rely heavily on international sales. Our portfolio of short-term investments are exposed to certain market risks. Our restructuring activities could result in management distractions, operational disruptions and other difficulties. Our markets are subject to rapid technological change, so our success depends heavily on our ability to develop and introduce new products. The markets in which we compete are highly competitive, and we expect competition to increase in these markets in the future. Our operating results depend on manufacturing output and yields of our ICs and printed circuit board assemblies, which may not meet expectations. We must develop or otherwise gain access to improved IC process technologies. The complexity of our products may lead to errors, defects and bugs, which could negatively impact our reputation with customers and result in liability. If our internal control over financial reporting is not considered effective, our business and stock price could be adversely affected. Our leadership transition may not go smoothly and could adversely impact our future operations. Our future success depends in part on the continued service of our key senior management, design engineering, sales, marketing, and manufacturing personnel, our ability to identify, hire and retain additional, qualified personnel and successful succession planning. Our ability to supply a sufficient number of products to meet demand could be severely hampered by a shortage of water, electricity or other supplies, or by natural disasters or other catastrophes. We could incur substantial fines or litigation costs associated with our storage, use and disposal of hazardous materials. Environmental laws and regulations could cause a disruption in our business and operations. Any acquisitions we make could disrupt our business and harm our results of operations and financial condition. Any dispositions we make could disrupt our business and harm our results of operations and financial condition. We may not be able to protect our intellectual property adequately. We could be harmed by litigation involving patents, proprietary rights or other claims. Our stock price is volatile. The anti-takeover provisions of our certificate of incorporation and of the Delaware general corporation law may delay, defer or prevent a change of control. If we issue additional shares of stock in the future, it may have a dilutive effect on our stockholders.

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711065--5/12/2010--APPLIED_MICRO_CIRCUITS_CORP