836106--2/29/2008--NOVELLUS_SYSTEMS_INC

related topics
{customer, product, revenue}
{property, intellectual, protect}
{condition, economic, financial}
{acquisition, growth, future}
{stock, price, operating}
{system, service, information}
{tax, income, asset}
{product, market, service}
{personnel, key, retain}
{financial, litigation, operation}
{loan, real, estate}
{operation, international, foreign}
Cyclical downturns in the semiconductor industry negatively impact demand for our equipment. The competitive and capital-intensive nature of the semiconductor industry increases the difficulty of maintaining gross margin and maintaining and capturing market share. We are exposed to risks associated with outsourcing activities, which could result in supply shortages that could affect our ability to meet customer demands. The loss of key employees could harm our business and operations. We face risks related to concentration of net sales. We are exposed to the risks of global operations. From time to time we may enhance, modify or upgrade our enterprise resource planning and other key software applications, which could cause unexpected problems to occur and could cause disruption to the management of our business. We face risks related to intellectual property. We are subject to litigation proceedings that could adversely affect our business. Changes in tax rates, tax assets or liabilities could negatively impact our future results. We are exposed to risks associated with our diversification strategy. We are exposed to risks related to our indemnification of third parties. We face risks associated with acquisitions, divestitures, and other transactions. Our financial results may fall short of anticipated levels; forecasting revenues and profitability is complex and our forecasts may be inaccurate. Our quarterly operating results and stock price are unpredictable.

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