1023362--3/17/2006--POWERWAVE_TECHNOLOGIES

related topics

{customer, product, revenue}

{product, market, service}

{property, intellectual, protect}

{acquisition, growth, future}

{cost, operation, labor}

{product, liability, claim}

{operation, natural, condition}

{operation, international, foreign}

{product, candidate, development}

{control, financial, internal}

{personnel, key, retain}

{stock, price, share}

{cost, contract, operation}

{provision, law, control}

{stock, price, operating}

We rely upon a few customers for the majority of our revenues and the loss of any one of these customers, or a significant loss, reduction or rescheduling of orders from any of these customers, would have a material adverse effect on our business, results of operations and financial condition. We may incur unanticipated costs as we complete the integration of our business with businesses we recently acquired. We have begun the process of implementing a new worldwide enterprise resource planning system and if we are unsuccessful in deploying the system or, if it takes longer than anticipated to deploy the system, we may incur significant additional costs which would negatively impact our financial results as well as potentially weaken our systemic internal controls. We have previously experienced significant reductions in demand for our products, by certain customers and if this continues, our operating results will be adversely impacted We have experienced, and will continue to experience, significant fluctuations in sales and operating results from quarter to quarter. Our average sales prices have declined, and we anticipate that the average sales prices for our products will continue to decline and negatively impact our gross profit margins. Our suppliers, contract manufacturers or customers could become competitors. Our success is tied to the growth of the wireless services communications market and our future revenue growth is dependent upon the expected increase in the size of this market. Our reliance on contract manufacturers exposes us to risks of excess inventory or inventory carrying costs. Our acquisition of selected assets and liabilities of REMEC, Inc. s Wireless Systems Business, as well as future acquisitions or strategic alliances, may present risks, and we may be unable to achieve the financial and strategic goals intended at the time of any acquisition or strategic alliance. We depend on single sources or limited sources for key components and products, which exposes us to risks related to product shortages or delays, as well as potential product quality issues, all of which could increase the cost of our products thereby reducing our operating profits. We may fail to develop products that are sufficiently manufacturable, which could negatively impact our ability to sell our products. We have recently sold our Philippines manufacturing facility to Celestica. If after the transfer of ownership production efficiency falls, we could be adversely affected. We may fail to develop products that are of adequate quality and reliability, which could negatively impact our ability to sell our products. If we are unable to hire and retain highly qualified technical and managerial personnel, we may not be able to sustain or grow our business. There are significant risks related to our internal and contract manufacturing operations in Asia. The initial sales cycle associated with our products is typically lengthy, often lasting from nine to eighteen months, which could cause delays in forecasted sales and cause us to incur substantial expenses before we record any associated revenues. We conduct a significant portion of our business internationally, which exposes us to increased business risks. Protection of our intellectual property is limited. We are at risk of third-party claims of infringement that could harm our competitive position. The communications industry is heavily regulated. We must obtain regulatory approvals to manufacture and sell our products, and our customers must obtain approvals to operate our products. Any failure or delay by us or any of our customers to obtain such approvals could negatively impact our ability to sell our products. The price of our Common Stock has been, and may continue to be, volatile and our shareholders may not be able to resell shares of our Common Stock at or above the price paid for such shares. We may need additional capital in the future and such additional financing may not be available at favorable terms. The wireless communications infrastructure equipment industry is extremely competitive and is characterized by rapid technological change, frequent new product development, rapid product obsolescence, evolving industry standards and significant price erosion over the life of a product. If we are unable to compete effectively, our business, results of operations and financial condition would be adversely affected. Our failure to enhance our existing products or to develop and introduce new products that meet changing customer requirements and evolving technological standards could have a negative impact on our ability to sell our products. Failure to maintain effective internal controls over financial reporting could adversely affect our business and the market price of our Common Stock. Our shareholder rights plan and charter documents could make it more difficult for a third party to acquire us, even if doing so would be beneficial to our shareholders. Our business is subject to the risks of earthquakes and other natural catastrophic events, and to interruptions by man made problems such as computer viruses or terrorism.

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1023362--3/17/2006--POWERWAVE_TECHNOLOGIES_INC