866374--5/29/2007--FLEXTRONICS_INTERNATIONAL

related topics

{customer, product, revenue}

{cost, operation, labor}

{operation, international, foreign}

{property, intellectual, protect}

{product, liability, claim}

{tax, income, asset}

{competitive, industry, competition}

{acquisition, growth, future}

{cost, regulation, environmental}

{system, service, information}

{personnel, key, retain}

{stock, price, operating}

Our customers may cancel their orders, change production quantities or locations, or delay production, and the inherent difficulties involved in responding to these demands could harm our business. Our industry is extremely competitive; if we are not able to continue to provide competitive services, we may lose business. We may encounter difficulties with acquisitions, which could harm our business. If we do not effectively manage changes in our operations, our business may be harmed; we have taken substantial restructuring charges in the past and we may need to take material restructuring charges in the future. Our operating results may fluctuate significantly due to a number of factors, many of which are beyond our control. Our strategic relationships with major customers create risks. We conduct operations in a number of countries and are subject to risks of international operations. Our strategic relationship with Nortel involves a number of risks, and we may not succeed in realizing the anticipated benefits of this relationship. The majority of our sales come from a small number of customers and a decline in sales to any of these customers could adversely affect our business. We are subject to the risk of increased income taxes. Our components business is dependent on our ability to quickly launch world-class components products, and our investment in development, and start-up and integration costs necessary to achieve quick launches of world-class components products may adversely affect our margins and profitability. Our substantial investments and start-up and integration costs in our design services business may adversely affect our margins and profitability. If our products or components contain defects, demand for our services may decline and we may be exposed to product liability and product warranty liability. We may not meet regulatory quality standards applicable to our manufacturing and quality processes for medical devices, which could have an adverse effect on our business, financial condition or results of operations. Intellectual property infringement claims against our customers or us could harm our business. The success of certain of our activities depends on our ability to protect our intellectual property rights. We are exposed to intangible asset risk. If OEMs stop or reduce their manufacturing and supply chain management outsourcing, our business could suffer. We may be adversely affected by shortages of required electronic components. Implementation of a new information system could disrupt our operations and cause unanticipated increases in our costs. Our exposure to financially troubled customers may adversely affect our financial results. Fluctuations in foreign currency exchange rates could increase our operating costs. We depend on our executive officers and skilled management personnel. Our failure to comply with environmental laws could adversely affect our business.

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866374--5/29/2007--FLEXTRONICS_INTERNATIONAL_LTD.