1072248--10/1/2008--GATEWAY_INTERNATIONAL_HOLDINGS_INC

related topics
{customer, product, revenue}
{condition, economic, financial}
{product, market, service}
{product, liability, claim}
{control, financial, internal}
{acquisition, growth, future}
{stock, price, operating}
{stock, price, share}
If we are unable to maintain relationships with our suppliers, our business could be materially adversely affected. We operate in a competitive industry and continue to be under the pressure of eroding gross profit margins, which could have a material adverse effect on our business. Products sold by us may be found to be defective and, as a result, warranty and/or product liability claims may be asserted against us, which may have a material adverse effect on the company. Our share ownership is concentrated. If we acquire other companies or assets, we may not be able to successfully integrate them or attain the anticipated benefits. If we fail to maintain an effective system of internal controls or discover material weaknesses in our internal controls over financial reporting, we may not be able to report our financial results accurately or timely or detect fraud, which could have a material adverse effect on our business. We rely on third-party suppliers and manufacturers to provide our CNC machines, and we will have limited control over these suppliers and manufacturers and may not be able to obtain quality products on a timely basis or in sufficient quantity. We have one customer that accounts for greater than 25% of our total sales and more than 75% of our precision manufacturing group s sales. We have one customer that accounts for greater than 25% of our total sales and more than 75% of our precision manufacturing group s sales. Our Machine Sales Group relies on the availability of used CNC machines for resale, if no used machines are available for purchase our business will suffer. The current crisis in the credit markets may adversely affect our customers ability to finance the purchase of new and used CNC machines. This would result in a significant reduction in our sales. Our Machine Sales Group relies on the availability of used CNC machines for resale, if no used machines are available for purchase our business will suffer. The current crisis in the credit markets may adversely affect our customers ability to finance the purchase of new and used CNC machines. This would result in a significant reduction in our sales.

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