827054--5/31/2006--MICROCHIP_TECHNOLOGY

related topics

{customer, product, revenue}

{product, market, service}

{personnel, key, retain}

{system, service, information}

{cost, regulation, environmental}

{stock, price, operating}

{condition, economic, financial}

{tax, income, asset}

{operation, international, foreign}

{financial, litigation, operation}

{property, intellectual, protect}

{acquisition, growth, future}

{loss, insurance, financial}

{regulation, change, law}

Our quarterly operating results may fluctuate due to factors that could reduce our net sales and profitability . Our operating results will suffer if we ineffectively utilize our manufacturing capacity or fail to maintain manufacturing yields. We are dependent on orders that are received and shipped in the same quarter and therefore limited in our visibility of future product shipments. Intense competition in the markets we serve may lead to pricing pressures, reduced sales of our products or reduced market share. Our business is dependent on selling through distributors. Our success depends on our ability to introduce new products on a timely basis. We must attract and retain qualified personnel to be successful, and competition for qualified personnel is intense in our market. We are dependent on several contractors to perform key manufacturing functions for us. We may lose sales if our suppliers of raw materials and equipment fail to meet our needs. Our operating results may be impacted by both seasonality and the wide fluctuations of supply and demand in the semiconductor industry. We are exposed to various risks related to legal proceedings or claims. Failure to adequately protect our intellectual property could result in lost revenue or market opportunities. We do not typically have long-term contracts with our customers . Business interruptions could harm our business. We are highly dependent on foreign sales and operations, which exposes us to foreign political and economic risks. Interruptions in information technology systems could affect our business. The occurrence of events for which we are self-insured, or which exceed our insurance limits may affect our profitability and liquidity. We are subject to stringent environmental regulations, which may force us to incur significant expenses. Compliance with future changes to securities laws and related regulations could result in increased costs to us. Recent regulations related to equity compensation will adversely affect our earnings and our ability to attract and retain key personnel. The future trading price of our common stock could be subject to wide fluctuations in response to a variety of factors. The outcome of currently ongoing and future examinations of our income tax returns by the IRS could have an adverse effect on our results of operations. In the event we make acquisitions, we may not be able to successfully integrate such acquisitions or attain the anticipated benefits.

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827054--5/31/2006--MICROCHIP_TECHNOLOGY_INC