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0000320193
20130424
10-Q
686
The Company devotes significant resources to network security, data encryption, and other security measures to protect its systems and data, but these security measures cannot provide absolute security.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
687
The Company may experience a breach of its systems and may be unable to protect sensitive data, which could damage business partner and customer relationships, and curtail or otherwise adversely impact access to online stores and services.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
688
Moreover, if a computer security breach affects the Company’s systems or results in the unauthorized release of PII, the Company’s reputation and brand could be materially damaged and use of the Company’s products and services could decrease.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
689
The Company would also be exposed to a risk of loss or litigation and possible liability.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
690
The Company’s business is subject to a variety of U.S. and international laws, rules, policies and other obligations regarding data protection.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
691
The Company is subject to federal, state and international laws relating to the collection, use, retention, security and transfer of PII.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
692
In many cases, these laws apply not only to third-party transactions, but also to transfers of information between the Company and its subsidiaries, and among the Company, its subsidiaries and other parties with which the Company has commercial relations.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
693
Several jurisdictions have passed laws in this area, and other jurisdictions are considering imposing additional restrictions.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
694
These laws continue to develop and may be inconsistent from jurisdiction to jurisdiction.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
695
Complying with emerging and changing international requirements may cause the Company to incur substantial costs or require the Company to change its business practices.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
696
Noncompliance could result in penalties or significant legal liability.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
697
The Company’s privacy policy and related practices concerning the use and disclosure of data are posted on its website.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
698
Any failure by the Company, its suppliers or other parties with whom the Company does business to comply with its posted privacy policy or with other federal, state or international privacy-related or data protection laws and regulations could result in proceedings against the Company by governmental entities or others...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
699
The Company is also subject to payment card association rules and obligations under its contracts with payment card processors.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
700
Under these rules and obligations, if information is compromised, the Company could be liable to payment card issuers for associated expenses and penalties.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
701
In addition, if the Company fails to follow payment card industry security standards, even if no customer information is compromised, the Company could incur significant fines or experience a significant increase in payment card transaction costs.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
702
The Company expects its quarterly revenue and operating results to fluctuate.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
703
The Company’s profit margins vary among its products and its distribution channels.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
704
The Company’s software, accessories, and service and support contracts generally have higher gross margins than certain of the Company’s other products.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
705
Gross margins on the Company’s hardware products vary across product lines and can change over time as a result of product transitions, pricing and configuration changes, and component, warranty, and other cost fluctuations.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
706
The Company’s direct sales generally have higher associated gross margins than its indirect sales through its channel partners.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
707
In addition, the Company’s gross margin and operating margin percentages, as well as overall profitability, may be materially adversely impacted as a result of a shift in product, geographic or channel mix, new products, component cost increases, the strengthening U.S. dollar, or price competition.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
708
The Company has typically experienced higher net sales in the first fiscal quarter compared to other fiscal quarters due in part to holiday seasonal demand.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
709
Actual and anticipated timing of new product introductions by the Company can also significantly impact the level of net sales experienced by the Company in any particular quarter.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
710
The Company could be subject to unexpected developments late in a quarter, such as lower-than-anticipated demand for the Company’s products, issues with new product introductions, an internal systems failure, or failure of one of the Company’s logistics, components supply, or manufacturing partners.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
711
The Company’s stock price is subject to volatility.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
712
The Company’s stock continues to experience substantial price volatility.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
713
Additionally, the Company, the technology industry, and the stock market as a whole have experienced extreme stock price and volume fluctuations that have affected stock prices in ways that may have been unrelated to these companies’ operating performance.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
714
The Company believes its stock price reflects expectations of future growth and profitability.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
715
If the Company fails to meet these expectations its stock price may significantly decline, which could have a material adverse impact on investor confidence and employee retention.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
716
The Company’s business is subject to the risks of international operations.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
717
The Company derives a significant portion of its revenue and earnings from its international operations.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
718
Compliance with applicable U.S. and foreign laws and regulations, such as import and export requirements, anti-corruption laws, tax laws, foreign exchange controls and cash repatriation restrictions, data privacy requirements, environmental laws, labor laws, and anti-competition regulations, increases the costs of doin...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
719
Although the Company has implemented policies and procedures to comply with these laws and regulations, a violation by the Company’s employees, contractors, or agents could nevertheless occur.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
720
The Company also could be significantly affected by other risks associated with international activities including, but not limited to, economic and labor conditions, increased duties, taxes and other costs, political instability, and changes in the value of the U.S. dollar versus local currencies.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
721
Margins on sales of the Company’s products in foreign countries, and on sales of products that include components obtained from foreign suppliers, could be materially adversely affected by foreign currency exchange rate fluctuations and by international trade regulations, including duties, tariffs and antidumping penal...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
722
The Company is also exposed to credit and collectability risk on its trade receivables with customers in certain international markets.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
723
There can be no assurance the Company can effectively limit its credit risk and avoid losses.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
724
The Company’s primary exposure to movements in foreign currency exchange rates relates to non-U.S. dollar denominated sales and operating expenses worldwide.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
725
For example, the uncertainty regarding the ability of certain European countries to continue to service their sovereign debt obligations and the related financial restructuring efforts by European governments may cause the value of several European currencies, including the euro, to fluctuate, which could adversely aff...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
726
Weakening of foreign currencies relative to the U.S. dollar adversely affects the U.S. dollar value of the Company’s foreign currency-denominated sales and earnings, and generally leads the Company to raise international pricing, potentially reducing demand for the Company’s products.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
727
In some circumstances, for competitive or other reasons, the Company may decide not to raise local prices to fully offset the dollar’s strengthening, or at all, which would adversely affect the U.S. dollar value of the Company’s foreign currency denominated sales and earnings.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
728
Conversely, a strengthening of foreign currencies relative to the U.S. dollar, while generally beneficial to the Company’s foreign currency-denominated sales and earnings, could cause the Company to reduce international pricing and incur losses on its foreign currency derivative instruments, thereby limiting the benefi...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
729
Additionally, strengthening of foreign currencies may also increase the Company’s cost of product components denominated in those currencies, thus adversely affecting gross margins.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
730
The Company uses derivative instruments, such as foreign currency forward and option contracts, to hedge certain exposures to fluctuations in foreign currency exchange rates.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
731
The use of such hedging activities may not offset any or more than a portion of the adverse financial effects of unfavorable movements in foreign exchange rates over the limited time the hedges are in place.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
732
The Company is exposed to credit risk and fluctuations in the market values of its investment portfolio.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
733
The Company has not recognized any significant losses on its cash, cash equivalents and marketable securities, but could experience significant declines in the market value of its investment portfolio.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
734
Given the global nature of its business, the Company has both domestic and international investments.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
735
Credit ratings and pricing of these investments can be negatively affected by liquidity, credit deterioration, financial results, economic risk, political risk, sovereign risk or other factors.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
736
As a result, the value and liquidity of the Company’s cash, cash equivalents and marketable securities could decline and result in a significant impairment.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
737
The Company is exposed to credit risk on its trade accounts receivable, vendor non-trade receivables and prepayments related to long-term supply agreements, and this risk is heightened during periods when economic conditions worsen.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
738
The Company distributes its products through third-party cellular network carriers, wholesalers, retailers and value-added resellers.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
739
A substantial majority of the Company’s outstanding trade receivables are not covered by collateral or credit insurance.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
740
The Company’s exposure to credit and collectability risk on its trade receivables is higher in certain international markets and its ability to mitigate such risks may be limited.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
741
The Company also has unsecured vendor non-trade receivables resulting from purchases of components by outsourcing partners and other vendors that manufacture sub-assemblies or assemble final products for the Company.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
742
In addition, the Company has made prepayments associated with long-term supply agreements to secure supply of inventory components.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
743
As of March 30, 2013, a significant portion of the Company’s trade receivables were concentrated within cellular network carriers, and its non-trade receivables and long-term supply agreements were concentrated among a few individual vendors located primarily in Asia.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
744
While the Company has procedures to monitor and limit exposure to credit risk on its trade and vendor non-trade receivables as well as long-term prepayments, there can be no assurance such procedures will effectively limit its credit risk and avoid losses.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
745
The Company could be impacted by unfavorable results of legal proceedings.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
746
The Company is subject to various legal proceedings and claims that have not yet been fully resolved and that have arisen in the ordinary course of business, and additional claims may arise in the future.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
747
Results of legal proceedings are subject to significant uncertainty and, regardless of the merit of the claims, litigation may be expensive, time-consuming, disruptive to the Company’s operations, and distracting to management.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
748
In recognition of these considerations, the Company may enter into arrangements to settle litigation.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
749
Although management considers the likelihood of such an outcome to be remote, if one or more legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially adversely a...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
750
Further, such an outcome could result in significant compensatory, punitive or trebled monetary damages, disgorgement of revenue or profits, remedial corporate measures or injunctive relief against the Company that could materially adversely affect its financial condition and operating results.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
751
The Company could be subject to changes in its tax rates, the adoption of new U.S. or international tax legislation or exposure to additional tax liabilities.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
752
The Company is subject to taxes in the U.S. and numerous foreign jurisdictions.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
753
Current economic and political conditions make tax rates in any jurisdiction, including the U.S., subject to significant change.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
754
The Company’s future effective tax rates could be affected by changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, or changes in tax laws or their interpretation.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
755
The Company is also subject to the examination of its tax returns by the Internal Revenue Service and other tax authorities.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
756
The Company regularly assesses the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of its provision for taxes.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
757
There can be no assurance as to the outcome of these examinations.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
758
Item 2.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
759
Unregistered Sales of Equity Securities and Use of Proceeds None.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
760
Item 3.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
761
Defaults Upon Senior Securities None.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
762
Item 5.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
763
Other Information Effective April 19, 2013, the Company appointed Luca Maestri as the Principal Accounting Officer of the Company.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
764
Mr. Maestri, 49, joined the Company in March 2013 and serves as the Company’s Corporate Controller.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
765
Prior to joining the Company, Mr. Maestri was Executive Vice President, Chief Financial Officer of Xerox Corporation from February 2011 to February 2013.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
766
Prior to that, Mr. Maestri was with Nokia Siemens Networks where he was Chief Financial Officer from October 2008 to February 2011 and he previously had a 20-year career with General Motors Corporation, where he served as Chief Financial Officer of GM Europe and GM Brazil, was executive-in-charge of the Fiat Alliance f...
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
767
With respect to the disclosure required pursuant to Item 401(d) of Regulation S-K, there are no family relationships between Mr. Maestri and any director or executive officer of the Company.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
768
With respect to Item 404(a) of Regulation S-K, there are no transactions between Mr. Maestri and the Company that would be required to be disclosed.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
769
Item 6.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
770
Exhibits Index to Exhibits Exhibit Description Incorporated by Reference Exhibit Number Form Exhibit Filing Date/ Period End Date 3.1 Restated Articles of Incorporation, filed with the Secretary of State of the State of California on July 10, 2009.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
771
10-Q 3.1 6/27/09 3.2 Amended Bylaws of the Registrant, as of April 20, 2011.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
772
10-Q 3.2 3/26/11 4.1 Form of Common Stock Certificate of the Registrant.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
773
10-Q 4.1 12/30/06 10.1* Amended Employee Stock Purchase Plan, effective as of March 8, 2010.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
774
10-Q 10.1 3/27/10 10.2* Form of Indemnification Agreement between the Registrant and each director and executive officer of the Registrant.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
775
10-Q 10.2 6/27/09 10.3* 1997 Director Stock Plan, as amended through May 24, 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
776
10-Q 10.3 6/30/12 10.4* 2003 Employee Stock Plan, as amended through February 25, 2010.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
777
8-K 10.1 3/1/10 10.5* Form of Restricted Stock Unit Award Agreement effective as of November 11, 2008.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
778
10-Q 10.10 12/27/08 10.6* Form of Restricted Stock Unit Award Agreement effective as of November 16, 2010.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
779
10-Q 10.10 12/25/10 10.7* Form of Restricted Stock Unit Award Agreement effective as of April 6, 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
780
10-Q 10.8 3/31/12 10.8* Summary Description of Amendment, effective as of May 24, 2012, to certain Restricted Stock Unit Award Agreements outstanding as of April 5, 2012.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
781
10-Q 10.8 6/30/12 31.1** Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
782
31.2** Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
783
32.1*** Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
784
101.INS** XBRL Instance Document.
0001193125-13-168288/full-submission.txt
0000320193
20130424
10-Q
785
101.SCH** XBRL Taxonomy Extension Schema Document.
0001193125-13-168288/full-submission.txt