1033905--3/16/2007--LUMINEX

related topics

{product, market, service}

{customer, product, revenue}

{product, liability, claim}

{property, intellectual, protect}

{stock, price, operating}

{condition, economic, financial}

{operation, international, foreign}

{personnel, key, retain}

{provision, law, control}

{debt, indebtedness, cash}

{acquisition, growth, future}

{product, candidate, development}

{regulation, government, change}

We expect our operating results to continue to fluctuate from quarter to quarter We may be unsuccessful in implementing our acquisition strategy. We may face difficulties integrating acquired entities with our existing businesses. Our success depends largely on the establishment and maintenance of successful relationships with our strategic partners. Currently, a limited number of strategic partners constitute a majority of our revenue and the loss of any one of these partners could have a material adverse effect on the Company. If our technology and products do not become widely used in the life sciences industry, it is unlikely that we can maintain or increase profitability. Our reliance on strategic partners to market 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 intellectual 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 will depend 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. The capital spending policies of our customers has a significant effect on the demand for our products. If we fail to comply with government regulations that affect our business, we could be subject to enforcement actions, injunctions and civil and criminal penalties that could delay or prevent marketing of 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 obligations pursuant to our new credit facility that could restrict our operations. 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 operating results may be affected by current economic and political conditions. International business operations create additional operational and legal risk. Our success will depend 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--3/16/2007--LUMINEX_CORP