1018332--3/16/2006--VIISAGE_TECHNOLOGY

related topics

{customer, product, revenue}

{acquisition, growth, future}

{product, market, service}

{control, financial, internal}

{system, service, information}

{tax, income, asset}

{stock, price, share}

{property, intellectual, protect}

{regulation, government, change}

{stock, price, operating}

{cost, operation, labor}

{financial, litigation, operation}

{product, candidate, development}

{regulation, change, law}

{personnel, key, retain}

{interest, director, officer}

{operation, international, foreign}

We have a history of operating losses. We derive over 90% of our revenue from government contracts, which are often non-standard, involve competitive bidding, may be subject to cancellation with or without penalty and may produce volatility in earnings and revenue. We derive a significant portion of our revenue from a few customers, the loss of which could have an adverse effect on our revenues. We derive revenue from only a limited number of products and services and we do not have a diversified product or service base. We could face adverse consequences as a result of our late SEC filings. We have been named as a defendant in a putative class action lawsuit, an adverse outcome in which could have a material adverse effect on our business, financial condition and results of operations by adversely affecting our cash position. We have taken an impairment charge to assets of $2.0 million due to Georgia litigation; if we are unable to use the remaining assets from that contract, we may be required to take further impairment charges which could negatively affect our earnings. If we are unable to successfully address the material weakness in our internal controls, our ability to report our financial results on a timely and accurate basis may be adversely affected. As a result, current and potential stockholders could lose confidence in our financial reporting which could have a material adverse effect on our business, operating results and stock price. Compliance with changing regulation of corporate governance and public disclosure may result in additional expenses and capital expenditures. Our strategy of expanding our biometric products business could adversely affect our business operations and financial condition. We face intense competition, which could result in lower revenues and higher research and development expenditures and could adversely affect ours results of operations. Unless we keep pace with changing technologies, we could lose existing customers and fail to win new customers. Security breaches in systems that we sell or maintain could result in the disclosure of sensitive government information or private personal information that could result in the loss of clients and negative publicity. SecuriMetrics intellectual property rights and revenues may be adversely affected if it does not prevail in the litigation between SecuriMetrics and Iridian Technologies, Inc. The substantial lead-time required for ordering products and materials may lead to inventory write-offs or loss of sales. Loss of limited source suppliers may result in delays or additional expenses. The market for our solutions is still developing and if the industry adopts standards or a platform different from our platform, then our competitive position would be negatively affected. Legal claims regarding infringement by us or our suppliers of third party intellectual property rights could result in substantial costs, diversion of managerial resources and harm to our reputation. Our plan to pursue sales in international markets may be limited by risks related to conditions in such markets. Our results of operations may be adversely impacted by governmental funding policies, statutory procurement, and performance requirements. If we do not successfully expand our direct sales and services organizations and partnering arrangements, we may not be able to increase our sales or support our customers. We rely in part upon original equipment manufacturers, or OEM, and distribution partners to distribute our products, and they may be adversely affected if those parties do not actively promote their products or pursue installations that use their equipment. The success of our strategic plan to grow sales and develop relationships in Europe may be limited by risks related to conducting business in European markets. If our systems and products are not timely delivered or do not perform as promised, we could experience increased costs, lower margins, liquidated damage payment obligations and harm to our reputation. Failure to maintain the proprietary nature of our technology, intellectual property and manufacturing processes could have a material adverse effect on our business, operating results, financial condition, stock price, and our ability to compete effectively. If we fail to adequately manage our resources, it could have a severe negative impact on our financial results or stock price. We may be unable to obtain additional capital required to fund our operations and finance our growth. If we fail to attract and retain qualified senior executive and key technical personnel, our ability to remain competitive could be adversely affected. Our quarterly results could be volatile and may cause our stock price to fluctuate. Our lengthy and variable sales cycle makes it difficult to predict operating results. Certain of our stockholders have significant relationships with us, which could result in it taking actions that are not supported by unaffiliated stockholders. Integration of Viisage and Identix and other acquired businesses may be difficult to achieve and will consume significant financial and managerial resources, which may adversely affect operations. The exchange ratio for the Identix merger is fixed, so the market value of the consideration received by Identix stockholders will change as the market price of Viisage common stock goes up or down. The costs associated with the Identix merger are difficult to estimate, may be higher than expected and may harm the financial results of the combined company. Our acquisitions could result in future impairment charges and other charges which could adversely affect our results of operations. Completion of the Identix merger may result in dilution of future earnings per share to our stockholders. Our net operating loss carryforwards may be limited as a result of the Identix merger. The market price of our common stock could decline as a result of effects of the merger. Failure to complete the Identix merger could negatively affect our stock price, future business and operations. If we do not achieve the expected benefits of the acquisitions we have made, the price of our common stock could decline.

Full 10-K form ▸

1018332--3/16/2006--VIISAGE_TECHNOLOGY_INC