1003113--3/16/2006--MOLECULAR_DEVICES

related topics

{customer, product, revenue}

{property, intellectual, protect}

{stock, price, operating}

{competitive, industry, competition}

{product, market, service}

{acquisition, growth, future}

{product, liability, claim}

{personnel, key, retain}

{operation, international, foreign}

{regulation, change, law}

{tax, income, asset}

{control, financial, internal}

{provision, law, control}

{loss, insurance, financial}

{cost, operation, labor}

We depend on orders that are received and shipped in the same quarter and therefore have limited visibility of future product shipments. Many of our current and potential competitors have significantly greater resources than we do, and increased competition could impair sales of our products. If we are not successful in developing new and enhanced products, we may lose market share to our competitors. We must expend a significant amount of time and resources to develop new products, and if these products do not achieve commercial acceptance, our operating results may suffer. We obtain some of the consumables, components and subassemblies used with or included in our systems from a single source or limited group of suppliers, and the partial or complete loss of one of these suppliers could cause customer supply or production delays and a substantial loss of revenues. We may encounter manufacturing and assembly problems or delays, which could result in lost revenues. If we deliver products with defects, our credibility will be harmed and the sales and market acceptance of our products will decrease. We have significantly expanded our international operations, which exposes us to risks inherent in international business activities. Most of our current and potential customers are from the pharmaceutical and biotechnology industries and are subject to risks faced by those industries. Our products could infringe on the intellectual property rights of others, which may cause us to engage in costly litigation and, if we are not successful, could also cause us to pay substantial damages and prohibit us from selling our products. We may need to initiate lawsuits to protect or enforce our patents, which would be expensive and, if we lose, may cause us to lose some of our intellectual property rights, which would reduce our ability to compete in the market. The rights we rely upon to protect our intellectual property underlying our products may not be adequate, which could enable third parties to use our technology and would reduce our ability to compete in the market. We may have difficulty managing our growth. We rely upon distributors for product sales and support outside of North America. If we choose to acquire new and complementary businesses, products or technologies instead of developing them ourselves, we may be unable to complete these acquisitions or may not be able to successfully integrate an acquired business or technology in a cost-effective and non-disruptive manner. We depend on our key personnel, the loss of whom would impair our ability to compete. Changes to financial accounting standards may affect our results of operations and cause us to change our business practices. Changes in our effective income tax rate could reduce our earnings. Our operating results fluctuate and any failure to meet financial expectations may disappoint securities analysts or investors and result in a decline in our stock price. Failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 could have a material adverse effect on our stock price. Our stock price is volatile, which could cause stockholders to lose a substantial part of their investment in our stock. Provisions of our charter documents and Delaware law may inhibit a takeover, which could limit the price investors might be willing to pay in the future for our common stock. Our actual results could differ materially from those anticipated in our forward-looking statements.

Full 10-K form ▸

1003113--3/16/2006--MOLECULAR_DEVICES_CORP