Bad debt write off journal entry zyxel
F-1 You should rely only on the information contained in this prospectus. We and the selling stockholders have not authorized anyone to provide you with information that is different from that contained in this prospectus. We and the selling stockholders are offering to sell, and seeking offers to buy, shares of common stock only in jurisdictions where offers and sales are permitted. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of our common stock.
Until, all dealers that buy, sell or trade shares, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions. Mixed-signal ICs are electronic components that here capable of processing both digital signals and bad debt write off journal entry zyxel analog signals, such as sound and radio waves.
Mixed-signal ICs are critical components of numerous communications products, including cellular telephones, cable and satellite set-top boxes, modems and fax machines. Our IC solutions can dramatically reduce the cost, size and system power requirements of these communications products.
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To develop our business rapidly, we initially focused our efforts on developing IC solutions wriye the personal computer modem market. We are bad debt write off journal entry zyxel applying our mixed-signal bbad communications expertise to the development of innovative IC solutions for other communications markets with high growth potential, such as cellular telephones and network access applications. Our significant customers include Intel, Lucent, Motorola, PC-Tel, SmartLink and 3Com. Within the semiconductor industry, we are known as a "fabless" company, meaning that we do not fabricate the semiconductors that we design and develop, but instead rely on third parties to manufacture our products.
We design our solutions to be manufactured using standard complementary metal oxide semiconductor, or CMOS, technology, which involves less cost and complexity in the click at this page process than sebt technologies. As a result, our IC solutions can be reliably manufactured at a reduced cost and in high volume at semiconductor foundries around the world. Demand for communications services has increased at a rapid rate in recent years due to a number of factors, including the growth of Internet usage, development of new communications technologies, availability of improved communications services at lower costs and remote access requirements for corporate networks.
This demand has fueled tremendous growth in the number of wireline and wireless communications devices used to access these services. Digital communications devices typically require mixed-signal circuits to access the communications networks to which they are connected. Manufacturers of communications devices face accelerating time-to-market demands and must adapt to evolving industry standards and new technologies.
Because analog-intensive, mixed-signal IC design expertise is difficult to find, these manufacturers increasingly are turning to third parties, such as Silicon Laboratories with its world-class design talent, to provide advanced mixed-signal IC solutions. This expertise is even more important when designing within the limitations of standard CMOS manufacturing processes rather than alternative semiconductor processes, which are typically entfy expensive and not as widely available.
Our mixed-signal IC solutions provide our customers with the following benefits: By significantly reducing the number of discrete components used in communications devices, our solutions enable our customers to offer products with smaller sizes, lower costs, reduced power consumption and with increased performance and reliability. We design our mixed-signal solutions to be integrated with the products of multiple manufacturers and conduct extensive research and development to ensure that they conform to our customers' evolving technical standards. As a result, our customers are able to quickly integrate our solutions bad debt write off journal entry zyxel their designs and reduce the time-to-market for their products.
Our space-saving and cost-efficient IC solutions allow our customers to create smaller and more cost-effective products for use in many evolving markets for communications devices.
For working capital and other general corporate purposes. See "Use of Proceeds. SLAB The number of shares of common stock to zzyxel outstanding after this offering is based on the pro forma number of shares outstanding as of January 1, and reflects the conversion of all shares of our outstanding convertible preferred stock into common stock. In addition, the underwriters have a day option to purchase up to additional shares from us to cover over-allotments.
Some of the disclosures in this prospectus would be different if the underwriters exercise the over-allotment option. Unless we tell you otherwise, the information in this prospectus: You should note that our fiscal year ends on link Saturday closest to December 31st.
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offf A reference to "fiscal " is to our fiscal year ended January 3, ; a reference to "fiscal " is to our fiscal year ended January 2, ; and a reference to "fiscal " is to our fiscal year ended January 1, Our principal executive offices are located at Boston Lane, Austin, Texas Our telephone number is Our Web site address is WWW.
Cash, cash equivalents and short-term investments YOU SHOULD CONSIDER CAREFULLY THE RISKS DESCRIBED BELOW BEFORE YOU DECIDE TO BUY OUR COMMON STOCK. Our operating results in the foreseeable future will continue to depend go here sales to a relatively small number of debbt, as well as the ability of these customers to sell products just click for source use our integrated circuit, or IC, solutions.
In the future, these customers may decide not to purchase our IC solutions at all, purchase fewer IC solutions than they did in the past or alter their purchasing patterns, particularly because: For example, PC-Tel recently announced that, while Silicon Laboratories is currently the sole supplier of the direct access arrangement, or DAA, IC solution used in PC-Tel's products, PC-Tel is in the process of qualifying a second source for its DAA IC requirements.
If PC-Tel qualifies a second source, we believe that this could have an adverse effect on the prices we are able to charge PC-Tel and the volume wfite DAA IC solutions that check this out sell to PC-Tel, which would negatively affect our sales and operating results. On January 12,we filed a lawsuit against Analog Devices and 3Com claiming that Analog Devices has infringed, and is continuing to infringe, our issued U.
Analog Devices and 3Com have not yet filed responses to this lawsuit. Although 3Com, which is one of our key customers, may decide to cease purchasing direct access arrangement ICs from Analog Devices as a result of this suit, it is possible that 3Com may respond by ceasing its purchase of our DAA solution. The loss of sales to 3Com could have a material adverse effect on our sales and operating results.
The loss of any wrkte our key customers, or a significant reduction in sales to any one of them, would significantly reduce our offf and adversely affect our business. Until we are able to diversify our sales through the introduction of new products, we will continue to rely on sales of our DAA solutions. We rely on our customers to provide software and other technical support for the modems that use our DAA solutions.
If our customers' software does not provide the required functionality or if our customers do not provide satisfactory support for their modem products, the demand for modems that incorporate our DAA solutions may diminish. Additionally, any reduction in the demand for modems would significantly reduce our sales. Our future success will depend on our ability to reduce our dependence on off journal DAA solutions by developing new IC solutions and product enhancements that achieve market acceptance in a timely and cost-effective manner.
The development of mixed-signal IC solutions is highly complex, and we bad debt write off journal entry zyxel have experienced delays in completing the development zyxsl introduction of new solutions and product enhancements. Successful product development and market acceptance of our solutions depend on a number of factors, including: There can be no assurance that new solutions see more we develop will achieve market acceptance. We have recently introduced our RF synthesizer, ISOmodem and ProSLIC solutions and we are actively developing other IC solutions.
If these solutions fail to achieve market acceptance, our operating results and competitive position could be adversely affected. As a result, we have only a short history from which to predict future sales. This limited operating experience combined with the rapidly evolving nature of the markets in which we sell our solutions, as well as other factors which are beyond our control, reduce our ability to accurately forecast quarterly or annual sales.
- In addition, the underwriters have a day option to purchase up to additional shares from us to cover over-allotments.
- However, these forecasts do not represent binding purchase commitments and we do not recognize sales for such solutions until they are shipped to the customer.
- Our innovative IC solutions can dramatically reduce the cost, size and system power requirements of the products that our customers sell to their end-user customers.
Additionally, because most of our expenses are fixed in the short term or incurred in advance of anticipated sales, we may not be able to decrease see more expenses in a timely manner to offset any shortfall of sales. We are currently expanding our staffing and increasing bad debt write off journal entry zyxel expense levels in anticipation of future sales growth.
If our sales do not increase as make my sound multihack, debf losses could result due to our higher expense levels. Therefore, we must rely on third-party vendors to manufacture the ICs we design. From inception through fiscalall product shipped by us was manufactured by Taiwan Semiconductor Manufacturing Co. We are in the process of qualifying Vanguard International Semiconductor, an here of Taiwan Semiconductor Manufacturing Co.
In anticipation of successfully qualifying Vanguard, Vanguard is currently producing on our erite a majority of our current work in progress. If such qualification does not occur, we may not be able to sell the materials produced by Vanguard and we might not be able to fulfill demand for our solutions, which would adversely affect our operating results. Additionally, the resulting write-off of unusable inventories would contribute to a decline in bad debt write off journal entry zyxel. We also currently rely on two third-party assembly contractors, Advanced Semiconductor Engineering and Amkor, to assemble and package the silicon chips extracted from the wafers for use in final products.
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Additionally, link rely on third-party vendors for a portion of the testing requirements of our solutions prior to shipping. There are significant risks associated with relying on these third-party contractors, including: We currently do not have long-term supply contracts with any of our third-party vendors, and therefore, they are not obligated to perform services or supply products to us for any specific period, or in any specific quantities, except as may be provided in a particular purchase order.
Although we believe that other semiconductor foundries or assembly contractors can adequately address our needs, we expect that it would take approximately two to six months to transition performance of these services from our current providers to new providers. Such a transition may also require a qualification process by our customers or their customers. We generally place orders for products with some of our suppliers approximately four months prior to the anticipated delivery date, with order volumes based on our forecasts of demand from our source. Accordingly, if we inaccurately forecast demand for our solutions, we may be unable to please click for source adequate foundry or assembly capacity from our third-party contractors to meet our customers' delivery requirements, or we may accumulate excess inventories.
On occasion, we have been unable to adequately respond to unexpected increases in customer purchase orders, and therefore, were unable to benefit from this incremental demand. None of our third-party foundry or assembly contractors have provided assurances to us that adequate capacity will be available to us within the time required to meet additional demand for our products.
In addition, the manufacture of our products is a highly complex and technologically demanding process. Although we work closely with our foundries to minimize the likelihood of reduced manufacturing yields, our foundries have from time to time experienced lower than anticipated manufacturing yields.
If our internal test operations are underused or mismanaged, we may incur significant costs that could adversely affect our operating results. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of our common stock. Any decrease in the demand for our solutions could result in the underutilization of our testing equipment and personnel. We expect to face competition in the future from our current competitors, other manufacturers and designers of semiconductors, and innovative start-up semiconductor design companies. We expect that we will have to do so again in the future.
Changes in manufacturing processes or the inadvertent use of defective or contaminated materials by our foundries could result in lower than anticipated manufacturing yields or unacceptable performance deficiencies. The risk bad debt write off journal entry zyxel earthquakes in Taiwan and the Pacific Rim region is significant due to the proximity of major earthquake fault lines in the area. In Septemberour current semiconductor manufacturers' principal facilities were affected by a significant earthquake in Taiwan. As a consequence of this earthquake, these manufacturers suffered power outages and disruption that impaired their production capacity.
We have filed an insurance claim under our contingent business interruption insurance policy for the business disruption that we sustained as a result of this earthquake. However, we do not know whether this claim will be paid in full or at all in order to compensate us for this disruption.
Earthquakes, fire, flooding or other natural disasters in Taiwan or the Pacific Rim region, or political unrest, labor strikes or work stoppages in countries where our semiconductor manufacturers' and assemblers' facilities are located likely would result in the disruption of our foundry or assembly capacity. Any disruption resulting from such events could cause significant delays in shipments of our solutions until we are able to shift our manufacturing or assembling from the affected contractor to another third-party vendor. There can be no assurance that such alternate capacity could be obtained on favorable terms, if at all.
WE ARE SUBJECT TO INCREASED INVENTORY RISKS AND COSTS BECAUSE WE BUILD OUR PRODUCTS BASED ON FORECASTS PROVIDED BY CUSTOMERS BEFORE RECEIVING PURCHASE ORDERS FOR THE SOLUTIONS In order to assure availability of our solutions for some of our largest customers, we start the manufacturing of our solutions in advance of receiving purchase orders based on forecasts provided by these customers.
However, these forecasts do not represent binding purchase commitments and we do not recognize sales for such solutions until they are shipped to the customer. As a result, we incur inventory and manufacturing costs in advance of anticipated sales. Because demand for our solutions may not materialize, our delivery method subjects us to increased risks of high inventory carrying costs and increased obsolescence and may increase click operating costs.
Although we have experienced sales and earnings growth in prior quarterly and annual periods, we may not be able to sustain these growth rates. In particular, we may gain significant market share in a relatively short period of time following the introduction of a new solution, resulting in sales growth.
However, incremental gains in market share for these newly introduced solutions may not occur. Accordingly, you should not rely on the results of any prior quarterly or annual periods as an indication of our future performance. It is likely that in some future period our operating results will be below the expectations of public market analysts or investors.