1092796--7/14/2006--SMITH_&_WESSON_HOLDING

related topics

{acquisition, growth, future}

{operation, international, foreign}

{stock, price, operating}

{stock, price, share}

{property, intellectual, protect}

{cost, regulation, environmental}

{provision, law, control}

{capital, credit, financial}

{product, market, service}

{financial, litigation, operation}

{customer, product, revenue}

{cost, operation, labor}

{product, liability, claim}

Insurance is expensive and difficult to obtain. The ongoing SEC investigation could result in additional costs, monetary penalties, and injunctive relief. We face intense competition that could result in our losing or failing to gain market share and suffering reduced revenue. Our Springfield, Massachusetts facility is critical to our success. Shortages of components and materials may delay or reduce our sales and increase our costs, thereby harming our operating results. We must effectively manage our growth. Our operating results may involve significant fluctuations. Potential strategic alliances may not achieve their objectives, and the failure to do so could impede our growth. Any acquisitions that we undertake could be difficult to integrate, disrupt our business, dilute stockholder value, and harm our operating results. Our inability to protect our intellectual property or obtain the right to use intellectual property from third parties could impair our competitive advantage, reduce our revenue, and increase our costs. We may incur substantial expenses and devote management resources in prosecuting others for their unauthorized use of our intellectual property rights. We face risks associated with international trade and currency exchange. We face risks associated with international activities. We may incur higher employee medical costs in the future. Our business is seasonal with our July fiscal quarters being our weakest quarter. We are subject to extensive regulation. Environmental laws and regulations may impact our business. The ownership of our common stock is concentrated. Certain provisions of our articles of incorporation and bylaws and Nevada law make it more difficult for a third party to acquire us and make a takeover more difficult to complete, even if such a transaction were in the stockholders interest or might result in a premium over the market price for the shares held by our stockholders. Our stockholders rights plan may adversely affect existing stockholders. The issuance of additional common stock in the future, including shares that we may issue pursuant to option grants, may result in dilution in the net tangible book value per share of our common stock. Sale of a substantial number of shares that are eligible for sale could adversely affect the price of our common stock. The market price of our common stock could be subject to wide fluctuations as a result of many factors.

Full 10-K form ▸

1092796--7/14/2006--SMITH_&_WESSON_HOLDING_CORP