1069183--3/15/2007--TASER_INTERNATIONAL

related topics

{customer, product, revenue}

{product, liability, claim}

{property, intellectual, protect}

{control, financial, internal}

{cost, regulation, environmental}

{stock, price, operating}

{financial, litigation, operation}

{product, market, service}

{personnel, key, retain}

{product, candidate, development}

{regulation, government, change}

Pending litigation may subject us to significant litigation costs, judgments, fines and penalties in excess of insurance coverage, and divert management attention from our business. Our future success is dependent on our ability to expand sales through distributors and our inability to recruit new distributors would negatively affect our sales. If we are unable to design, introduce and sell new products or new product features successfully, our business and financial results could be adversely affected. We expend significant resources in anticipation of a sale due to our lengthy sales cycle and may receive no revenue in return. Most of our end-users are subject to budgetary and political constraints that may delay or prevent sales. Government regulation of our products may adversely affect sales. Environmental laws and regulations subject us to a number of risks and could result in significant liabilities and costs. If we are unable to protect our intellectual property, we may lose a competitive advantage or incur substantial litigation costs to protect our rights. We may be subject to intellectual property infringement claims, which could cause us to incur litigation costs and divert management attention from our business. If we face competition in foreign countries, we can enforce patent rights only in the jurisdictions in which our patent applications have been granted. Government regulations applied to our products may affect our markets for these products. Competition in the law enforcement and corrections market could reduce our sales and prevent us from achieving profitability. Defects in our products could reduce demand for our products and result in a loss of sales, delay in market acceptance and injury to our reputation. Our dependence on third party suppliers for key components of our devices could delay shipment of our products and reduce our sales. Component shortages could result in our inability to produce volume to adequately meet customer demand. This could result in a loss of sales, delay in deliveries and injury to our reputation. Our dependence on foreign suppliers for key components of our products could delay shipment of our finished products and reduce our sales. We may experience a decline in gross margins due to rising raw material and transportation costs associated with an increase in petroleum prices. Our revenues and operating results may fluctuate unexpectedly from quarter to quarter, which may cause our stock price to decline. While we believe that we currently have adequate internal control over financial reporting, we are exposed to risks from legislation requiring companies to evaluate those internal controls. We may experience difficulties in the future in complying with Sarbanes-Oxley Section 404.

Full 10-K form ▸

1069183--3/15/2007--TASER_INTERNATIONAL_INC