1034239--3/1/2006--RC2

related topics

{customer, product, revenue}

{product, market, service}

{stock, price, operating}

{operation, international, foreign}

{property, intellectual, protect}

{product, liability, claim}

{financial, litigation, operation}

{provision, law, control}

{debt, indebtedness, cash}

{acquisition, growth, future}

Our net sales and profitability depend on our ability to continue to conceive, design and market products that appeal to consumers. Competition for licenses could increase our licensing costs or limit our ability to market products. Competition in our markets could reduce our net sales and profitability. We may experience difficulties in integrating strategic acquisitions. We depend on the continuing willingness of chain retailers to purchase and provide shelf space for our products. We may not be able to collect outstanding accounts receivable from our major retail customers. We rely on a limited number of foreign suppliers in China to manufacture a majority of our products. Increases in the cost of the raw materials used to manufacture our products could increase our cost of sales and reduce our gross margins. Currency exchange rate fluctuations could increase our expenses. Because we rely on foreign suppliers and we sell products in foreign markets, we are susceptible to numerous international business risks that could increase our costs or disrupt the supply of our products. Product liability, product recalls and other claims relating to the use of our products could increase our costs. Trademark infringement or other intellectual property claims relating to our products could increase our costs. Our debt covenants may limit our ability to complete acquisitions, incur debt, make investments, sell assets, merge or complete other significant transactions. Sales of our products are seasonal, which causes our operating results to vary from quarter to quarter. The trading price of our common stock has been volatile and investors in our common stock may experience substantial losses. We may face future securities class action lawsuits that could require us to pay damages or settlement costs and otherwise harm our business. Various restrictions in our charter documents, Delaware law and our credit agreement could prevent or delay a change in control of us which is not supported by our board of directors.

Full 10-K form ▸

1034239--3/1/2006--RC2_CORP