889930--9/15/2006--OVERLAND_STORAGE

related topics

{operation, international, foreign}

{property, intellectual, protect}

{system, service, information}

{stock, price, operating}

{cost, regulation, environmental}

{product, market, service}

{acquisition, growth, future}

{regulation, government, change}

{control, financial, internal}

{personnel, key, retain}

{competitive, industry, competition}

{loss, insurance, financial}

{customer, product, revenue}

{stock, price, share}

Our business has been highly dependent on sales to large OEM customers and we are currently experiencing a customer transition. We outsourced all of our manufacturing to Sanmina-SCI Corporation (Sanmina), but now are in the process of returning manufacturing to our San Diego facility. If we are unable to complete the transition efficiently, or obtain our products from Sanmina in a cost effective and timely manner that meets our customers expectations our business, financial condition and results of operations could be materially and adversely affected. Our internal controls and procedures related to accounts payable cut-off need to be improved. We plan to replace our ERP System in 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. 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, could harm our business, financial condition and operating results. Our warranty reserves may not adequately cover our warranty obligations. Our success depends on our ability to attract, retain and motivate our executives and other key personnel. The WEEE and RoHS directives in Europe may impact the cost of our products and/or our ability to sell products in Europe.

Full 10-K form ▸

889930--9/15/2006--OVERLAND_STORAGE_INC