1035884--2/26/2009--COMMSCOPE

related topics

{customer, product, revenue}

{cost, operation, labor}

{cost, regulation, environmental}

{acquisition, growth, future}

{tax, income, asset}

{operation, international, foreign}

{cost, contract, operation}

{condition, economic, financial}

{property, intellectual, protect}

{debt, indebtedness, cash}

{loss, insurance, financial}

{loan, real, estate}

{system, service, information}

{product, market, service}

We are dependent on a limited number of key customers or distributors for a substantial portion of the net sales in each of our business segments. We face competitive pressures with respect to all of our major products. Our dependence on commodities subjects us to price fluctuations and potential availability constraints which could materially adversely affect our profitability. We are dependent on a limited number of key suppliers for certain raw materials. If our components or completed products purchased from our suppliers experience performance issues, our business will suffer. If contract manufacturers that we rely on to produce a significant portion of our products or key components of products encounter production, quality, financial or other difficulties, we may experience difficulty in meeting customer demands. Successful implementation and roll-out of product innovations is necessary to preserve customer relationships. Orders received from customers may be cancelled or may result in lower levels of orders in future periods. If our integrated global manufacturing operations suffer production or shipping delays, we may experience difficulty in meeting customer demands. If we encounter capacity constraints with respect to our internal facilities and/or existing or new contract manufacturers, it could have an adverse impact on our business. Our business depends on effective information management systems. If our products experience performance issues, our business will suffer. Our significant international operations present economic, political and other risks. Volatility in foreign exchange rates can have a significant impact on net sales and operating expense. Acquisition, Realignment, Restructuring and Disposition Risks We may fail to fully realize the anticipated synergies and cost savings expected from our acquisition of Andrew. We may have difficulty completing the integration of the CommScope and Andrew businesses and may incur substantial costs in connection with completing the integration. Difficulties may be encountered in the realignment of manufacturing capacity and capabilities among our global manufacturing facilities that could adversely affect our ability to meet customer demands for our products. We may need to undertake additional restructuring actions in the future. We may not fully realize anticipated benefits from prior or future acquisitions or equity investments. Failure to maintain compliance with our debt covenants could result in an event of default, potentially resulting in a material increase in the interest rate on the debt, among other possible consequences. We may need to recognize additional impairment charges related to goodwill, amortizable intangible assets, fixed assets or other intangible assets with indefinite lives. We have significant obligations under our defined benefit employee benefit plans. Our ability to obtain additional capital on commercially reasonable terms may be limited. A significant uninsured loss or a loss in excess of our insurance coverage could materially adversely affect our financial condition. We may experience significant variability in our quarterly and annual effective tax rate. Difficult and volatile conditions in the capital, credit and commodities markets and in the overall economy could materially adversely affect our financial position, results of operations and cash flows, and we do not know if these conditions will improve in the near future. We may incur costs and may not be successful in protecting our intellectual property and in defending claims that we are infringing on the intellectual property of others. A jury has found that Andrew willfully infringed a third party s patent in providing a mobile location system to a customer located in the Middle East, and the judge has reduced the jury verdict to $23.25 million in damages, plus interest, to that third party. Compliance with domestic and foreign environmental laws and potential environmental liabilities may have a material adverse impact. Allegations of health risks from wireless equipment may negatively affect our results of operations.

Full 10-K form ▸

1035884--2/26/2009--COMMSCOPE_INC