1004608--3/30/2007--PINNACLE_DATA_SYSTEMS_INC

related topics
{customer, product, revenue}
{personnel, key, retain}
{control, financial, internal}
{loss, insurance, financial}
{stock, price, operating}
{operation, international, foreign}
{product, liability, claim}
{operation, natural, condition}
{system, service, information}
{product, market, service}
A significant portion of our revenues from product sales and services are dependent on significant customers and specific industries. Our future success in business strategy is dependent upon our ability to generate significant revenues from world-leading OEMs and ISVs development relationships. If we are unable to grow our international revenues and successfully overcome the risks inherent in international business activities, the growth of our business may be limited. If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our operating results could fall below expectations of investors, resulting in a decline in our stock price. Our quarterly revenues and operating results may fluctuate which could cause our results from operations to fall below expectations and thus impact the market price of our common stock. Competition in professional services around the development, deployment and support of sophisticated computer systems market is significant and if we fail to compete effectively, our financial results will suffer. Reliance on a single source supplier could delay product shipments and increase our costs. Our products may have quality issues that could adversely affect our sales and reputation. If we fail to attract and retain appropriate levels of qualified employees and members of senior management, we may not be able to successfully execute our business strategy. If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results. As a result, current and potential stockholders could lose confidence in our financial reporting, which could have a negative market reaction. If the site of our production and service operations were to experience a significant disruption in its operations, it would have a material adverse effect on our financial condition and results of operations.

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