1016229--4/29/2008--LCC_INTERNATIONAL

related topics

{cost, contract, operation}

{operation, international, foreign}

{tax, income, asset}

{product, market, service}

{acquisition, growth, future}

{personnel, key, retain}

{customer, product, revenue}

{competitive, industry, competition}

{cost, operation, labor}

{system, service, information}

{interest, director, officer}

{capital, credit, financial}

{debt, indebtedness, cash}

{regulation, government, change}

We may experience significant fluctuations in our quarterly results as a result of uncertainties relating to our ability to generate additional revenues, manage our expenditures and other factors, certain of which are outside of our control. Our contracts typically contain provisions giving customers the ability to terminate their contracts under various circumstances and we may not be able to replace the revenues from such projects which may have an adverse effect on our operating results due to our decreased revenues. Our Amended and Restated Credit Agreement contains certain financial tests and requires certain mandatory prepayments, the achievement of which is dependent to a significant extent on the performance of our business as well as achieving certain benefits from our recent acquisition of the U.S. engineering business of Wireless Facilities, Inc. Our existing debt obligations may constrain our ability to grow. If the borrowing base under our credit facility decreases our business may be adversely impacted. We may not receive the full amount of our backlog, which could harm our business. A large percentage of our revenues come from fixed price contracts, which require us to bear the risk of cost overruns. To the extent we recognize revenues on fixed price contracts using the percentage-of-completion method of accounting, increases in estimated project costs could cause fluctuations in our quarterly results and adversely affect our operating results. If more of our customers require fixed price contracts with fewer milestones than in previous years, we may not have sufficient access to working capital to fund the operating expenses incurred in connection with such contracts, and we may not be able to perform under our existing contracts or accept new contracts with similar terms. The extent of our dependence on international operations may give rise to increased management challenges and could harm our results of operations. Providing services outside the United States carries the additional risk of currency fluctuations and foreign exchange controls imposed by certain countries since many of our non-U.S. projects are undertaken in local currency. Our development stage customers may face difficulties in obtaining financing to fund the expansion of their wireless networks, which may reduce demand for our services. If we are unable to collect receivables from telecommunications companies and our development stage customers, our operating results may be materially harmed. We face intense competition from many competitors that have greater resources than we do, which could result in price reductions, reduced profitability and loss of market share. If we fail to manage the size of our billable workforce to anticipate increases or decreases in market demand for our services, it could harm our competitive position and financial results. We may not be able to successfully achieve the expected benefits of our future acquisitions, investments or strategic partnering relationships. Future acquisitions of new companies or technologies and future strategic partnering relationships may result in disruption to our business and expose us to risks associated with acquisitions and such relationships. Our ability to reduce our general and administrative expenses is limited. Competitors that offer financing to wireless customers pose a threat to our ability to compete for business. Our inability to anticipate or adapt to changes in technology may harm our competitive position, reputation and opportunities for revenue growth. We may not be able to hire or retain a sufficient number of qualified engineers and other employees to meet our contractual commitments or maintain the quality of our services. Because we have experienced, and expect to continue to experience, long sales cycles, we expect to incur significant costs to generate new business and our customer base may not experience growth commensurate with such costs. If wireless service providers, network equipment vendors and enterprises perform more tasks themselves, our business will suffer. Government regulations may adversely affect our business. We may be unable to satisfy the accounting guidelines that govern the determination of the realizable value of a deferred tax asset in a given tax jurisdiction, thus eliminating our ability to recognize as an asset the tax benefit of operating losses in the same jurisdiction and causing a reduction in our overall consolidated profitability. If we fail to retain our key personnel and attract and retain additional qualified personnel, our ability to operate our business may be adversely affected.

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1016229--4/29/2008--LCC_INTERNATIONAL_INC