836106--3/16/2006--NOVELLUS_SYSTEMS_INC

related topics
{operation, international, foreign}
{product, market, service}
{customer, product, revenue}
{regulation, change, law}
{stock, price, operating}
{control, financial, internal}
{personnel, key, retain}
{property, intellectual, protect}
{loan, real, estate}
{tax, income, asset}
{acquisition, growth, future}
The competitive and capital-intensive nature of the semiconductor industry increases the difficulty of maintaining and capturing market share. Rapid technological change in the semiconductor industry requires substantial research and development expenditures and responsiveness to customer needs. We are exposed to the risks of global operations. Our quarterly operating results and stock price are unpredictable. Changes in tax rates or liabilities could negatively impact our future results. We face risks associated with acquisitions. We are exposed to risks associated with our diversification strategy. We face risks related to concentration of net sales. We face risks related to intellectual property. The loss of key employees could harm our business and operations. Supply shortages could affect our ability to meet customer demands. We are exposed to risks associated with outsourcing activities. If our outside audit firm does not maintain its independence, we may be unable to meet our regulatory reporting obligations. Corporate governance and financial reporting compliance requirements may lead to increased costs and difficulty in attracting qualified executive officers and directors.

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