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periods of severe pricing pressures due to oversupply or price erosion resulting from competitive pressures or
industry consolidation;
developments with respect to patents or proprietary rights;
proposed or adopted regulatory changes or developments or anticipated or pending investigations, proceedings
or litigation that involve or affect us or our competitors;
conditions and trends in the hard drive, computer, data and content management, storage and communication
industries;
contraction in our operating results or growth rates that are lower than our previous high growth-rate periods;
failure to meet analysts' revenue or earnings estimates or changes in financial estimates or publication of
research reports and recommendations by financial analysts relating specifically to us or the storage industry in
general; and
macroeconomic conditions that affect the market generally and, in particular, developments related to market
conditions for our industry.
In addition, the stock market is subject to fluctuations in the stock prices and trading volumes that affect the
market prices of the stock of public companies, including us. These broad market fluctuations have adversely affected
and may continue to adversely affect the market price of shares of our common stock. For example, expectations con-
cerning general economic conditions may cause the stock market to experience extreme price and volume fluctuations
from time to time that particularly affect the stock prices of many high technology companies. These fluctuations
often appear to be unrelated to the operating performance of the companies.
Securities class action lawsuits are often brought against companies after periods of volatility in the market price
of their securities. A number of such suits have been filed against us in the past, and should any new lawsuits be filed,
such matters could result in substantial costs and a diversion of resources and management's attention.
The resale of shares of common stock issued to Hitachi in connection with our acquisition of HGST could adversely affect the
market price of our common stock.
On March 8, 2012, as partial consideration for our acquisition of HGST, we issued 25 million shares of our
common stock to Hitachi. We are required by the terms of an Investor Rights Agreement we entered into with
Hitachi to file a Form S-3 registration statement with the Securities and Exchange Commission on or before
August 28, 2013 to register the resale by Hitachi of these shares of common stock. Sales of these shares of our com-
mon stock in the public market, or the perception that these sales may occur, could adversely affect the market price
of our common stock. Further, because we do not know when or in what amounts Hitachi may seek to sell these shares
of common stock, uncertainty about the market price of our common stock could extend for a significant period of
time and impair our ability to raise capital through the sale of additional equity securities.
Current economic conditions have caused us difficulty in adequately protecting our increased cash and cash equivalents from
financial institution failures.
The uncertain global economic conditions and volatile investment markets have caused us to hold more cash and
cash equivalents than we would hold under normal circumstances. Since there has been an overall increase in demand
for low-risk, U.S. government-backed securities with a limited supply in the financial marketplace, we face increased
difficulty in adequately protecting our increased cash and cash equivalents from possible sudden and unforeseeable
failures by banks and other financial institutions. A failure of any of these financial institutions in which deposits
exceed FDIC limits could have an adverse impact on our financial position.
If our internal controls are found to be ineffective, our stock price may be adversely affected.
Our most recent evaluation resulted in our conclusion that as of June 28, 2013, in compliance with Section 404
of the Sarbanes-Oxley Act of 2002, our internal control over financial reporting was effective. If our internal control
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