772406--6/4/2007--CIRRUS_LOGIC

related topics

{customer, product, revenue}

{operation, international, foreign}

{property, intellectual, protect}

{acquisition, growth, future}

{financial, litigation, operation}

{product, market, service}

{tax, income, asset}

{interest, director, officer}

{stock, price, operating}

{personnel, key, retain}

{competitive, industry, competition}

{system, service, information}

{product, liability, claim}

Our products are complex and could contain defects, which could result in material costs to us. We have historically experienced fluctuations in our operating results and expect these fluctuations to continue in future periods. We may face increased risks and uncertainties related to our non-marketable securities. Shifts in industry-wide capacity and our practice of purchasing our products based on sales forecasts may result in significant fluctuations in our quarterly and annual operating results. Strong competition in the semiconductor market may harm our business. We may be unable to protect our intellectual property rights. Potential intellectual property claims and litigation could subject us to significant liability for damages and could invalidate our proprietary rights. Our products may be subject to average selling prices that decline over short time periods. If we are unable to increase our volumes, introduce new or enhanced products with higher selling prices or reduce our costs, our business and operating results could be harmed. We have significant international sales, and risks associated with these sales could harm our operating results. Failure to manage our distribution channel relationships could adversely affect our business. Our international operations subject our business to additional political and economic risks that could have an adverse impact on our business. If we fail to attract, hire and retain qualified personnel, we may not be able to develop, market, or sell our products or successfully manage our business. Because we depend on subcontractors primarily located in Asia to perform key manufacturing functions for us, we are subject to political and economic risks that could disrupt the assembly, packaging, or testing of our products. We may acquire other companies or technologies, which may create additional risks associated with our ability to successfully integrate them into our business. We may face difficulties integrating and may incur costs associated with our acquisition of Caretta Integrated Circuits, Inc. and any future acquisitions. Future transactions may limit our ability to use our net operating loss carryforwards. Despite our efforts to make appropriate judgments in determining the correct measurement dates for our stock option grants, the Securities and Exchange Commission may disagree with our reporting or we may discover additional information in the future concerning the appropriate measurement dates. Therefore, a risk exists that we may have to further restate our prior financial statements. Our operating results for fiscal year 2006 and prior periods have been materially impacted by the results of the voluntary review of our past stock option granting practices. Any related action by a governmental agency could result in civil or criminal sanctions. Such matters and civil litigation relating to our historical option practices or our restatement of our financial statements could result in significant costs and the diversion of attention of our management and other key employees, which could have an adverse effect on us.

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772406--6/4/2007--CIRRUS_LOGIC_INC