Additional Risk Factors for Q3 2008
- general economic and political conditions and specific
conditions in the markets we address, including the continuing
volatility in the technology sector and semiconductor industry,
trends in the broadband communications markets in various
geographic regions, including seasonality in sales of consumer
products into which our products are incorporated, and possible
disruption in commercial activities related to terrorist
activity or armed conflict;
- the timing, rescheduling or cancellation of significant
customer orders and our ability, as well as the ability of our
customers, to manage inventory;
- our dependence on a few significant customers for a
substantial portion of our revenue;
- the gain or loss of a key customer, design win or order;
- the rate at which our present and future customers and
end-users adopt Broadcom's technologies and products in our
target markets;
- our ability to specify, develop or acquire, complete,
introduce, market and transition to volume production new
products and technologies in a cost-effective and timely
manner;
- the availability and pricing of third party semiconductor
foundry, assembly and test capacity and raw materials;
- intellectual property disputes and customer indemnification
claims and other types of litigation risk;
- risks and uncertainties resulting from Broadcom's equity
award review, including potential claims and proceedings
related to such matters, such as shareholder litigation and any
action by the SEC, U.S. Attorney's Office or other governmental
agency that has resulted in, and could result in further civil
or criminal sanctions against the company and/or certain of our
current or former officers, directors or employees, or other
actions taken or required as a result of the review, and the
extent to which we are able to receive reimbursement of our
expenses related to such litigation and actions through our
directors' and officers' insurance carriers. In the event that
the company's coverage under these policies is reduced or
denied, our financial exposure would be correspondingly
increased;
- our ability to retain, recruit and hire key executives,
technical personnel and other employees in the positions and
numbers, with the experience and capabilities, and at the
compensation levels needed to implement our business and
product plans;
- the effectiveness of our expense and product cost control and
reduction efforts;
- our ability to scale our operations in response to changes in
demand for our existing products and services or demand for new
products requested by our customers;
- the quality of our products and any potential remediation
costs;
- competitive pressures and other factors such as the
qualification, availability and pricing of competing products
and technologies and the resulting effects on sales and pricing
of our products;
- our ability to timely and accurately predict market
requirements and evolving industry standards and to identify
opportunities in new markets;
- the risks of producing products with new suppliers and at new
fabrication and assembly and test facilities;
- problems or delays that we may face in shifting our products
to smaller geometry process technologies and in achieving
higher levels of design integration;
- delays in the adoption and acceptance of industry standards
in our target markets;
- changes in our product or customer mix;
- the volume of our product sales and pricing concessions on
volume sales;
- the timing of customer-industry qualification and
certification of our products and the risks of
non-qualification or non-certification;
- fluctuations in the manufacturing yields of our third party
semiconductor foundries and other problems or delays in the
fabrication, assembly, testing or delivery of our products;
- the risks and uncertainties associated with our international
operations, particularly in light of terrorist activity, armed
conflict or political unrest; and
- the level of orders received that can be shipped in a fiscal
quarter.
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