889930--8/23/2007--OVERLAND_STORAGE_INC

related topics
{customer, product, revenue}
{property, intellectual, protect}
{system, service, information}
{operation, international, foreign}
{product, market, service}
{stock, price, operating}
{acquisition, growth, future}
{control, financial, internal}
{personnel, key, retain}
{competitive, industry, competition}
{loss, insurance, financial}
{stock, price, share}
We have a recent history of net losses. We expect to continue to incur net losses for some time and we may not achieve or maintain profitability. Our business has been highly dependent on sales to large OEM customers and we are currently experiencing a customer transition. We could incur charges for excess and obsolete inventory. We rely on indirect sales channels to market and sell our branded products. Therefore, the loss of or deterioration in our relationship with one or more of our distributors or resellers could negatively affect our operating results. We plan to replace our ERP (Enterprise Resource Planning) System within the next several years, and this may be disruptive to our business. Our financial results may fluctuate substantially for many reasons, and past results should not be relied on as indications of future performance. The market price of our common stock may be volatile We face intense competition and price pressure, and many of our competitors have substantially greater resources than we do. Our business is highly dependent on the continued market acceptance and usage of tape-based systems for data backup and recovery. Our disk-based products involve many significant risks and may fail to achieve or maintain market acceptance. Our success depends on our ability to anticipate rapid technological changes and develop new and enhanced products. Our international operations are important to our business and involve unique risks. We are subject to exchange rate risk in connection with our international operations. Our ability to compete effectively depends in part on our ability to protect our intellectual property rights effectively. Our success will depend partly on our ability to operate without infringing on or misappropriating the proprietary rights of others. We have made a number of acquisitions in the past and may make acquisitions in the future. The failure to successfully integrate acquisitions and successfully complete product development and launch of the related products could harm our business, financial condition and operating results. Our warranty reserves may not adequately cover our warranty obligations. The failure to attract, retain and motivate key personnel could have a significant adverse impact on our operations.

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