1021770--6/28/2006--FIREARMS_TRAINING_SYSTEMS_INC

related topics
{customer, product, revenue}
{product, market, service}
{debt, indebtedness, cash}
{stock, price, operating}
{personnel, key, retain}
{provision, law, control}
{stock, price, share}
{property, intellectual, protect}
{cost, contract, operation}
{acquisition, growth, future}
{operation, international, foreign}
Our business relies on maintaining key customer relationships and certain key contracts. Our business relies on obtaining key government contracts that are subject to regulatory requirements and availability of public funds. Our business relies on maintaining and growing sales to international customers. Our success is dependent upon the Company s ability to incorporate rapid technological change. Our market is continuing to develop and there is no assurance that our products will continue to obtain acceptance. We are likely to face continued competition for our products. Our quarterly results are subject to significant variations. Our financial condition and the restrictive covenants contained in our credit facility may limit our ability to borrow additional funds or raise additional equity as may be required to fund our future operations. Our business depends on our ability to manage growth. We depend on our current personnel and may have difficulty attracting and retaining the skilled employees we need to execute our business plan. We are dependent on our relationship with our agents in some countries. Because our business is dependent on commercial airfreight carriers and air charter operators, ocean freight carriers and other transportation companies, changes in available cargo capacity and other changes affecting such carriers, as well as interruptions in service or work stoppages by such carriers, may negatively impact our business. If we are unable to protect our intellectual property, our competitive position would be adversely affected. Control of our stock is concentrated in a few existing stockholders. Provisions of our governing documents could discourage acquisition proposals or delay a change in control. Investor interest in our common stock may be negatively affected by our continued trading on the Over-the-Counter Bulletin Board. We have no present intention to pay dividends and our credit facility restricts our ability to pay dividends in the future.

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