1033905--2/25/2010--LUMINEX

related topics

{product, market, service}

{customer, product, revenue}

{product, liability, claim}

{property, intellectual, protect}

{condition, economic, financial}

{personnel, key, retain}

{acquisition, growth, future}

{provision, law, control}

{operation, international, foreign}

{regulation, government, change}

{debt, indebtedness, cash}

{product, candidate, development}

{stock, price, operating}

Our success depends significantly on the establishment and maintenance of successful relationships with our strategic partners. Currently, a limited number of strategic partners account for a majority of our revenue and the loss of any one of these partners or their inability to perform to expectations could have a material adverse effect on our business, financial condition and results of operations. Current economic conditions and the uncertain economic outlook may adversely impact our business, results of operations, financial condition or liquidity. If the FDA or other governmental laws and regulations change in ways that we do not anticipate and we fail to comply with those regulations that affect our business, we could be subject to enforcement actions, injunctions and civil and criminal penalties or otherwise be subject to increased costs that could delay or prevent marketing of our products. If our technology and products do not become widely used in the life sciences and clinical diagnostics industries, it is unlikely that we can maintain or increase profitability. Our reliance on strategic relationships to market many of our products makes forecasting difficult. The life sciences industry is highly competitive and subject to rapid technological change, and we may not have the resources necessary to compete successfully. Our success depends on our ability to service and support our products directly or in collaboration with our strategic partners. The property rights we rely upon to protect the technology underlying our products may not be adequate to maintain market exclusivity. Inadequate intellectual property protection could enable third parties to exploit our technology or use very similar technology and could reduce our ability to distinguish our products in the market. Our success depends partly on our ability to operate without infringing on or misappropriating the proprietary rights of others. We have only produced our products in limited quantities, and we may experience problems in scaling our manufacturing operations or delays or component shortages that could limit the growth of our revenue. International business operations create additional operational and legal risk. The capital spending policies of our customers have a significant effect on the demand for our products. If we become subject to product liability claims, we may be required to pay damages that exceed our insurance coverage. If third-party payors increasingly restrict payments for healthcare expenses or fail to adequately pay for multi-analyte testing, we may experience reduced sales which would hurt our business and our business prospects. We may in the future incur substantial debt that could restrict our operations. We may be unsuccessful in implementing our acquisition strategy. We may face difficulties integrating acquired entities with our existing businesses. We rely on the innovation and resources of larger industry participants and public programs to advance genomic research and educate physicians/clinicians on genetic diagnostics. We are subject to evolving legislative, judicial and ethical standards on use of technology and biotechnology. Our success depends on our ability to attract and retain our management and staff. Our stock price has been and is likely to continue to be volatile. Anti-takeover provisions in our certificate of incorporation, bylaws and stockholder rights plan and Delaware law could make a third party acquisition of us difficult.

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1033905--2/25/2010--LUMINEX_CORP