768251--2/17/2010--ALTERA

related topics

{customer, product, revenue}

{property, intellectual, protect}

{product, market, service}

{condition, economic, financial}

{product, liability, claim}

{operation, natural, condition}

{regulation, change, law}

{operation, international, foreign}

{competitive, industry, competition}

Our failure to compete successfully in the highly competitive semiconductor industry would adversely affect our financial results and business prospects. The length of our design-in and sales cycles could affect our ability to forecast future sales. Our business is characterized by a general decline in semiconductor product selling prices that may materially and adversely affect our profitability. Because we depend on international sales for a majority of our total sales, we may be subject to political, economic, and other conditions that could increase our operating expenses and disrupt our business. We rely heavily on distributors to generate a significant portion of our sales and fulfill our customer orders. The failure of our distributors to perform as expected could materially reduce our future sales. We are highly dependent on Arrow Electronics, Inc. including its affiliates ( Arrow ), in many locations across the world, particularly in North America. Our ability to add or replace distributors is limited. We depend entirely on independent subcontractors to supply us with finished silicon wafers. The failure of these subcontractors to satisfy our demand could materially disrupt our business. Wafer shortages and/or increased wafer and assembly material costs could lower our gross margins, reduce our sales, or otherwise materially disrupt our business. Product manufacturing is complex, and our foundries may not achieve the necessary yields or product reliability that our business requires. We depend on independent subcontractors, located in Asia, to assemble, test, and ship our semiconductor products. The failure of these subcontractors to satisfy our demand could materially disrupt our business. Conditions outside the control of our independent subcontractors and distributors may impact their business operations and thereby adversely interrupt our manufacturing and sales processes. Our failure to define, develop, and manufacture technologically advanced products would adversely affect the success and growth of our company. Any prolonged disruption to our global communications infrastructure could impair our ability to plan factory activity and respond to customer demand. Product quality problems could lead to reduced revenue, gross margins, and net income. We may be subject to product liability claims. Our business is subject to the risks of earthquakes and other catastrophic events. As we carry only limited insurance coverage, any incurred liability resulting from uncovered claims could adversely affect our financial condition and operating results. Legislative action in the United States could materially and adversely affect us from a tax perspective. The failure of our intellectual property rights to provide meaningful protection from our competitors could harm our competitive position. Intellectual property infringement claims could adversely affect our ability to manufacture and market our products.

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768251--2/17/2010--ALTERA_CORP