855658--3/10/2010--LATTICE_SEMICONDUCTOR

related topics

{customer, product, revenue}

{property, intellectual, protect}

{product, market, service}

{condition, economic, financial}

{operation, international, foreign}

{operation, natural, condition}

{competitive, industry, competition}

{cost, contract, operation}

{personnel, key, retain}

{control, financial, internal}

{acquisition, growth, future}

{stock, price, operating}

Global economic conditions and uncertainty, as well as the highly cyclical nature of the semiconductor industry, could adversely affect our revenue, gross margin and expenses, collectability of accounts receivable and supplier relationships, and ability to access capital markets. A downturn in the communications equipment end market could cause a reduction in demand for our products and limit our ability to maintain revenue levels and operating results. The potential impact of customer design-in activity on future revenue is inherently uncertain and could impact our ability to manage production or our ability to forecast sales. We may not be able to successfully compete in the highly competitive semiconductor industry. Our quarterly revenue and gross margin are subject to fluctuations due to many factors which makes our future financial results less predictable. Currently Fujitsu is our sole source supplier of wafers for our newest FPGA and PLD products. We may be unsuccessful in defining, developing and identifying manufacturing processes for the new programmable logic products required to maintain or expand our business. Our future revenue growth is dependent on market acceptance of our new silicon and software design tool products and the continued market acceptance of our current products. Export sales account for the majority of our revenue and may decline in the future due to economic and governmental uncertainties. We depend on distributors to generate a majority of our sales and complete order fulfillment. The failure of our distributors to sell our products and otherwise perform as expected could materially reduce our future sales. We rely on our distributors that use the sell-through distribution model to produce resale reports that help us in predicting future sales and revenues. The failure of such distributors to produce accurate and timely resale reports could affect our ability to make these predictions. Our wafer supply could be interrupted or reduced, which may result in a shortage of products available for sale. If our foundry partners wafer costs increase or if our foundry partners experience quality or yield problems, we may face a shortage of products available for sale and our revenue or gross margin could be adversely affected. Product quality problems could lead to reduced revenue, gross margins and net income. Our supply of assembled and tested products could be interrupted or reduced, which may result in a shortage of products available for sale. If our assembly and test supply contractors experience quality or yield problems, we may face a shortage of products available for sale. We depend upon a third party to provide inventory management, order fulfillment, and direct sales logistics. If our independent software and hardware developers and suppliers are unable or unwilling to meet our contractual requirements, we may face a delay or shortage of the introduction of new products, or the support of existing products. We may fail to retain or attract the specialized technical and management personnel required to successfully operate our business. We are currently implementing a new enterprise-wide financial reporting system which may cause operating or reporting disruptions. An acquisition may harm our business, financial condition or operating results. We may have failed to adequately insure against certain risks, and, as a result, our financial condition and results may be adversely affected. If we are unable to adequately protect our intellectual property rights, our financial results and competitive position may suffer. We face risks related to patent litigation.

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855658--3/10/2010--LATTICE_SEMICONDUCTOR_CORP