United states securities and exchange commission

Business Risks
To remain competitive and stimulate customer demand, the Company must successfully manage frequent introductions 
and transitions of products and services.
Due to the highly volatile and competitive nature of the markets and industries in which the Company competes, the Company 
must continually introduce new products, services and technologies, enhance existing products and services, effectively 
stimulate customer demand for new and upgraded products and services, and successfully manage the transition to these new 
and upgraded products and services. The success of new product and service introductions depends on a number of factors, 
including timely and successful development, market acceptance, the Company’s ability to manage the risks associated with 
production ramp-up issues, the availability of application software for the Company’s products, the effective management of 
purchase commitments and inventory levels in line with anticipated product demand, the availability of products in appropriate 
quantities and at expected costs to meet anticipated demand, and the risk that new products and services may have quality or 
other defects or deficiencies. There can be no assurance the Company will successfully manage future introductions and 
transitions of products and services.
The Company depends on component and product manufacturing and logistical services provided by outsourcing 
partners, many of which are located outside of the U.S.
Substantially all of the Company’s manufacturing is performed in whole or in part by outsourcing partners located primarily in 
Asia, including China mainland, India, Japan, South Korea, Taiwan and Vietnam, and a significant concentration of this 
manufacturing is currently performed by a small number of outsourcing partners, often in single locations. Changes or additions 
to the Company’s supply chain require considerable time and resources and involve significant risks and uncertainties. The 
Company has also outsourced much of its transportation and logistics management. While these arrangements can lower 
operating costs, they also reduce the Company’s direct control over production and distribution. Such diminished control has 
from time to time and may in the future have an adverse effect on the quality or quantity of products manufactured or services 
provided, or adversely affect the Company’s flexibility to respond to changing conditions. Although arrangements with these 
partners may contain provisions for product defect expense reimbursement, the Company generally remains responsible to the 
consumer for warranty and out-of-warranty service in the event of product defects and experiences unanticipated product defect 
liabilities from time to time. While the Company relies on its partners to adhere to its supplier code of conduct, violations of the 
supplier code of conduct occur from time to time and can materially adversely affect the Company’s business, reputation, results 
of operations and financial condition.
The Company relies on single-source outsourcing partners in the U.S., Asia and Europe to supply and manufacture many 
components, and on outsourcing partners primarily located in Asia, for final assembly of substantially all of the Company’s 
hardware products. Any failure of these partners to perform can have a negative impact on the Company’s cost or supply of 
components or finished goods. In addition, manufacturing or logistics in these locations or transit to final destinations can be 
disrupted for a variety of reasons, including natural and man-made disasters, information technology system failures, commercial 
disputes, armed conflict, economic, business, labor, environmental, public health or political issues, or international trade 
disputes.
The Company has invested in manufacturing process equipment, much of which is held at certain of its outsourcing partners, 
and has made prepayments to certain of its suppliers associated with long-term supply agreements. While these arrangements 
help ensure the supply of components and finished goods, if these outsourcing partners or suppliers experience severe financial 
problems or other disruptions in their business, such continued supply can be reduced or terminated, and the recoverability of 
manufacturing process equipment or prepayments can be negatively impacted.