875359--4/3/2006--MICRO_LINEAR_CORP

related topics

{customer, product, revenue}

{product, market, service}

{condition, economic, financial}

{competitive, industry, competition}

{property, intellectual, protect}

{personnel, key, retain}

{acquisition, growth, future}

{stock, price, operating}

{provision, law, control}

{control, financial, internal}

{operation, international, foreign}

{financial, litigation, operation}

{product, liability, claim}

The markets in which we operate are intensely competitive, and many competitors are larger and more established. If we do not compete successfully, our business could be harmed. The market for wireless applications is characterized by rapid technological change. Our future success depends on our ability to respond to these changes. We need to develop and introduce new and enhanced products in a timely manner to successfully compete in our industry. We have a history of losses and, because of continued investment in product development, expect to incur losses in the future. We may not become profitable. To the extent that our existing resources and cash generated from operations are insufficient to fund our future activities, we may need to raise additional capital. If funds are not available on acceptable terms, we may not be able to hire or retain employees, fund our operations or compete effectively. We depend on networking, wireless, and telecommunications spending for our revenue. Any decrease or delay in spending in these industries would negatively impact future operating results and financial condition. Our customer base is concentrated. The loss of one or more key customers or distributors would harm our business. We depend on international sales and are subject to the risks associated with international operations, which may negatively affect our business. Selling prices for wireless products typically decrease, which could lead to lower operating results. Defects in our products, product returns and product liability could result in a decrease in customers and revenue, unexpected expenses and loss of market share. We depend on the health of the semiconductor industry, which is highly cyclical. The decline in demand in the semiconductor industry could affect our financial condition and results of operations. If we fail to adequately forecast demand for our products, we may incur product shortages or excess product inventory. We depend on a limited number of outside foundries and test subcontractors in the manufacturing process, and any failure to obtain sufficient foundry or testing capacity could significantly delay our ability to ship our products, damage our customer relationships, and result in reduced revenue. We and the independent foundries and subcontractors we use to manufacture and test our products are subject to environmental laws. Failure to comply with these laws could delay manufacturing of our products and result in unexpected expenses. Because competition for qualified personnel is intense, we may not be successful in attracting and retaining personnel, which could have an impact upon the development or sales of our products. Our success depends on our ability to protect our intellectual property and proprietary rights. We have been in the past, and in the future may be, a party to legal proceedings that could have a negative financial impact on us. Our stock price has been and will likely continue to be volatile because of stock market fluctuations that affect the price of technology stocks. A decline in our stock price could result in securities class action litigation against us, which could divert management s attention and harm our business. Our certificate of incorporation and bylaws, stockholder rights plan and Delaware law contain provisions that could discourage a change in control, even if the change in control would be beneficial to our stockholders.

Full 10-K form ▸

875359--4/3/2006--MICRO_LINEAR_CORP_/CA/