1022705--2/27/2008--TESCO

related topics

{customer, product, revenue}

{gas, price, oil}

{cost, regulation, environmental}

{operation, natural, condition}

{operation, international, foreign}

{product, market, service}

{condition, economic, financial}

{competitive, industry, competition}

{property, intellectual, protect}

{financial, litigation, operation}

{personnel, key, retain}

{control, financial, internal}

{debt, indebtedness, cash}

{system, service, information}

{stock, price, operating}

{product, liability, claim}

Fluctuations in the demand for and prices of oil and gas could negatively impact our business. We face risks due to the cyclical nature of the energy industry and the corresponding credit risk of our customers. Our CASING DRILLING technology is relatively new and subject to general market acceptance. Our revenues and earnings are subject to fluctuations period over period and are difficult to forecast. Any significant consolidation or loss of end-user customers could have a negative impact on our business. Concentration of our revenue and management in the United States involves risk. Our profitability is driven to a large extent by our ability to deliver the products we manufacture in a timely manner. We have been the subject of patent infringement claims and we may not be able to protect or enforce our intellectual property rights. Our foreign operations and investments involve special risks. We operate in an intensively competitive industry and if we fail to compete effectively our business will suffer. To compete in our industry, we must continue to develop new technologies and products. We provide warranties on our products and if our products fail to operate properly our business will suffer. We rely on the availability of raw materials, component parts and finished products to produce our products. The design of some of our equipment is based on components provided by specific sole source manufacturers. Our products and services are used in hazardous conditions, and we are subject to risks relating to potential liability claims. We are subject to legal proceedings and may, in the future, be subject to additional legal proceedings. Our business requires the retention and recruitment of a skilled workforce and key employees, and the loss of such employees could result in the failure to implement our business plans. Our debt and other financing obligations restrict our ability to take certain actions and require the maintenance of certain financial ratios; failure to comply with these requirements could result in acceleration of our debt. The occurrence or threat of terrorist attacks could materially impact our business. Environmental compliance and remediation costs and the costs of environmental liabilities could exceed our estimates. Management has concluded that we maintained effective internal control over financial reporting as of December 31, 2007. If we discover a material weakness in the future, we may not be able to provide reasonable assurance regarding the reliability of our financial statements. As a result, investors could lose confidence in our reported results which could have a negative effect on the trading of our securities.

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1022705--2/27/2008--TESCO_CORP