Any adverse change in the economic conditions in China, in the policies of the PRC government or in the laws and regulations in China, could have a material adverse effect on the overall economic growth of China or on the investment in the semiconductor industry. The financial turmoil affecting the financial markets and banking system may significantly restrict our ability to obtain financing in the capital markets or from financial institutions on commercially reasonable terms, or at all. In particular, even if a product designer decides to incorporate our products into its product or design, the designer may not be able to market and sell its product or design successfully. We are a multimedia semiconductor and IP-based security and surveillance solution provider. We cannot assure you that we will be able to effectively manage our planned expansion. Increased competition may result in price reductions, reduced margins and market share and increased marketing and research and development expenditures.
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Integrating analog and digital circuits in rain vimicro 301 single rain vimicro 301 product is inherently difficult due to noise interference and other technical challenges. Our customers tend to increase their inventories of our products in anticipation of the peak fourth quarter buying season for PCs and other devices into which our products are incorporated, which often leads rain vimicro 301 sequentially lower sales of our products in the first and fourth quarters.
Many of our competitors have significantly greater financial, technical, manufacturing, marketing, sales and other resources than we do and may be able to respond to changing market conditions and customer requirements more quickly and effectively. Once a multimedia processor designed by a supplier has been incorporated into a PC camera design, the PC camera designer tends to keep rain vimicro 301 same supplier for the life of the product as significant costs are generally required in association with qualifying a new supplier.
We did not derive any revenues from our wireless value-added telecommunications business in We rely on their expertise in research and development, business operations, sales and marketing and on their relationships with our shareholders, distributors and customers and relevant government authorities.
Conversely, if we decide to convert our RMB into U. We expect to continue these measures. If we are unable to successfully compete with existing and future competitors, our business, financial condition and results of operations could be materially adversely affected. Using these algorithms, our multimedia SoC solutions are able to perform image, video and audio DSP functions such as data recovery, signal quality enhancement, noise reduction, sample rate conversion, auto exposure, white-balance and focus control, and video and audio signal rain vimicro 301.
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Fluctuations in exchange rates, primarily those involving the U. Games secret fashion victoria download show. We believe that our products and solutions, our location in China and our team of experienced managers and engineers provide us with a rain vimicro 301 of significant competitive strengths, including: In addition, there is no guarantee rain vimicro 301 a design vinicro will result in volume production vimicor sales of our product.
The semiconductor industry and our operations are characterized by high costs, such as those related to facility construction and equipment, research and development, and employment and rain vimicro 301 of a highly skilled workforce, that are either fixed or difficult to reduce in the short term.
In particular, we currently rely on Taiwan Rain vimicro 301 Manufacturing Company, or TSMC, one of our principal foundries, to manufacture a rain vimicro 301 of our multimedia processors. The emergence of a miniature camera, bring convenience to people’s life at the same time, some phenomenon such as related to business secrets, personal privacy also arise.
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Selective acquisitions, such as our acquisition of the ViSS business from ASB, form part of our strategic expansion plan. In particular, Vimicro Tianjin has commenced the construction rain vimicro 301 a project for the research, development and production of digital high-definition security and surveillance products and solutions. Inan outbreak of swine flu occurred in various countries, including China. Table of Contents Any downturn or reduction in the growth of these industries could seriously harm our business, financial condition and results of operations.
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We rain vimicro 301 incorporated in the Cayman Islands, and conduct a substantial portion of our operations in China through Vimicro China. Failure to maintain relationships with the minority shareholders of our non wholly-owned subsidiaries may result in material disputes or disruption of the operations of these subsidiaries, any of which could have a material adverse rain vimicro 301 on our financial condition and results of operations.
We expect that our security and surveillance business will continue to rely on government policies in the foreseeable future.
We have an extensive network of sales, marketing and customer support resources, including offices in Mountain View California, Hong Kong, Taipei, Beijing, Rain vimicro 301, Shenzhen and Nanjing. We are currently evaluating and monitoring developments with respect to these new rules, and we cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.
The high level of integration of our single-chip products delivers several benefits to our customers, rain vimicro 301 low power consumption, small size and cost effectiveness. Our auditor, like rain vimicro 301 independent registered public accounting firms operating in China, is not permitted to be subject to inspection by the Public Company Accounting Oversight Board and investors may be deprived of the benefits of such inspection.
Because the value of our assets for purposes of the PFIC test will generally be determined by reference to the market price of our ADSs or ordinary shares, our PFIC status will depend in large part on the market price of rain vimicro 301 ADSs or ordinary shares, which may fluctuate significantly. Any intellectual property litigation could have a material adverse effect on our business, operating results or financial condition.
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In addition, we also use Advanced Semiconductor Engineering, Inc. Our financial condition and results of operations could also fluctuate significantly due to changes in our product mix and the industry environment. Additional equity rain vimicro 301 could result in significant dilution to our shareholders and vimocro financing could adversely affect our earnings.