1013696--3/28/2008--CHANNELL_COMMERCIAL

related topics

{customer, product, revenue}

{cost, regulation, environmental}

{condition, economic, financial}

{product, market, service}

{operation, natural, condition}

{operation, international, foreign}

{personnel, key, retain}

{acquisition, growth, future}

{stock, price, operating}

{investment, property, distribution}

The industries in which we operate are subject to obsolescence and technological change, which could adversely affect our sales. Increases in raw materials prices may cause our results of operations to suffer. A significant reduction in new product development could negatively affect our business and results of operations. We are dependent on a small number of customers for a significant percentage of sales. A significant reduction in capital spending patterns of telecommunications industry service providers could adversely affect our results of operations. We operate with a relatively small backlog amount, and accordingly, any change in customer buying patterns may adversely affect our results of operations. Disruptions or delays in obtaining certain components of our products could disrupt the manufacture of our products and cause our sales and results of operations to suffer. Increases in the cost, and interruption in the availability, of energy may adversely impact our sales and result of operations. We may not be successful in identifying and acquiring suitable acquisition targets and integrating acquired companies. As a result of the fixed costs of operating our business, a reduction in sales or sales growth could disproportionately affect our financial results. Our operating results may fluctuate significantly from quarter to quarter due to seasonal selling patterns and other factors. Our international operations subject us to the social, political and economic risks of doing business in foreign countries We face competition in the industries in which we sell our products. A disruption at our Temecula, California manufacturing facility could adversely affect our business and results of operations. Inability to renew our related party leases could adversely affect our business. The termination of transportation and logistics services by the primary freight provider for our Bushman Tanks business could continue to adversely impact our results of operations. We are subject to governmental laws and regulations, which could adversely affect our business. If we are unable to attract and retain key management and other personnel, our business and results of operations could be adversely affected Environmental laws and regulations could limit our ability to operate as we are currently operating and could result in additional costs. Weather patterns in Australia may affect the demand for water storage tanks.

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1013696--3/28/2008--CHANNELL_COMMERCIAL_CORP