1031028--9/15/2008--GLOBECOMM_SYSTEMS

related topics

{product, market, service}

{stock, price, share}

{system, service, information}

{customer, product, revenue}

{property, intellectual, protect}

{regulation, government, change}

{operation, international, foreign}

{cost, contract, operation}

{cost, operation, labor}

{provision, law, control}

{personnel, key, retain}

{competitive, industry, competition}

We derive a substantial portion of our revenues from fixed-price projects, under which we assume greater financial risk if we fail to accurately estimate the costs of the projects. Our service revenue has increased as a percentage of total revenue and if our service revenue decreases or margins decrease, our results of operations will be harmed In the event of a catastrophic loss affecting our operations in Hauppauge, New York or Laurel, Maryland, our results of operations would be harmed. Our markets are highly competitive and we have many established competitors, and we may lose market share as a result. We may not realize all of the anticipated benefits of our acquisition of the GlobalSat business. If our products and services are not accepted in developing countries with emerging markets, our revenues will be impaired. Since sales of satellite communications equipment are dependent on the growth of communications networks, if market demand for these networks declines, our revenue and profitability are likely to decline. We depend upon certain key personnel and may not be able to retain these employees. If we lose the services of these individuals or cannot hire additional qualified personnel, our business will be harmed. Satellites upon which we rely may malfunction or be damaged or lost. We depend on our suppliers, some of which are our sole or a limited source of supply, and the loss of these suppliers could materially adversely affect our business, results of operations and financial condition. Our network may experience security breaches, which could disrupt our services. If the satellite communications industry fails to continue to develop or new technology makes it obsolete, our business and financial condition will be harmed. We may not be able to keep pace with technological changes, which would make our products and services become non-competitive and obsolete. Unauthorized use of our intellectual property by third parties may damage our business. Defending against intellectual property infringement claims could be time consuming and expensive, and if we are not successful, could cause substantial expenses and disrupt our business. Risks Related to the Securities Markets and Ownership of Our Common Stock Our stock price is volatile. Because our common stock is thinly traded, it may be difficult to sell shares of our common stock into the markets without experiencing significant price volatility. A third party could be prevented from acquiring shares of our stock at a premium to the market price because of our anti-takeover provisions. We have not paid dividends in the past and do not expect to pay dividends in the future, and any return on investment may be limited to the value of our stock. Risks Related to Government Approvals We are subject to many government regulations, and failure to comply with them will harm our business. Operations and Use of Satellites

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1031028--9/15/2008--GLOBECOMM_SYSTEMS_INC