ABSTRACT
The markets for the RF Monolithics Inc.’s products are intensely competitive and are characterized by price erosion, rapid technological change and product obsolescence. In most of the markets for the Company's products, the Company competes with very large, vertically integrated, international companies, including AVX, EPCOS Electronic Parts and Components, Murata Manufacturing Co., and Triquint Semiconductor Inc. that have substantially greater financial, technical, sales, marketing, distribution and other resources, and broader product lines, than the Company. The Company also expects increased competition from existing competitors as well as competition from a number of companies that currently use Surface Acoustic Wave (SAW) expertise largely for internal requirements. In addition, the Company experiences increased competition from companies that offer alternative solutions such as phase locked lop technology, which combines a semiconductor with a traditional crystal. The Company believes competitors may duplicate the Company's products, which would cause additional pressure on selling prices and which could adversely affect market share. 1
