1114925--9/11/2007--LANTRONIX

related topics

{customer, product, revenue}

{product, market, service}

{system, service, information}

{operation, international, foreign}

{property, intellectual, protect}

{cost, regulation, environmental}

{stock, price, operating}

{acquisition, growth, future}

{control, financial, internal}

{personnel, key, retain}

{financial, litigation, operation}

Our quarterly operating results may fluctuate, which could cause our stock to decline. If a major distributor or customer cancels, reduces or delays purchases, our net revenues might decline and our business could be adversely affected. If we fail to develop or enhance our products to respond to changing market conditions and government and industry standards, our competitive position will suffer and our business will be adversely affected. Delays in deliveries or quality problems with our component suppliers could damage our reputation and could cause our net revenues to decline and harm our results of operations. If we lose the services of any of our contract manufacturers or suppliers, we may not be able to obtain alternate sources in a timely manner, which could harm our customer relations and adversely affect our net revenues and harm our results of operations. Environmental regulations such as the WEEE and RoHS directives may require us to redesign our products and to develop compliance administration systems. If our research and development efforts are not successful, our net revenues could decline and our business could be harmed. We expect the average selling prices of our products to decline, which could reduce our net revenues, gross margins and profitability. Current or future litigation could adversely affect us. Our products may contain undetected software or hardware errors or defects that could lead to an increase in our costs, reduce our net revenues or damage our reputation. If software that we license or acquire from the open source software community and incorporate into our products were to become unavailable or no longer available on commercially reasonable terms, it could adversely affect sales of our products, which could disrupt our business and harm our financial results. If our contract manufacturers are unable or unwilling to manufacture our products at the quality and quantity we request, our business could be harmed. We are exposed to foreign currency exchange risks, which could harm our business and operating results. Our international activities are subject to uncertainties, which include international economic, regulatory, political and other risks that could harm our business, financial condition or results of operations. If we are unable to sell our inventory in a timely manner it could become obsolete, which could require us to increase our reserves and harm our operating results. We are subject to export control regulations that could restrict our ability to increase our international revenue and may adversely affect our business. If we are unable to attract, retain or motivate key senior management and technical personnel, it could seriously harm our business. If our OEM customers develop their own expertise in network-enabling products, it could result in reduced sales of our products and harm our operating results. New product introductions and pricing strategies by our competitors could reduce our market share or cause us to reduce the prices of our products, which would reduce our net revenues and gross margins. Current or future litigation over intellectual property rights could adversely affect us. We may not be able to adequately protect or enforce our intellectual property rights, which could harm our competitive position or require us to incur significant expenses to enforce our rights. Acquisitions, strategic partnerships, joint ventures or investments may impair our capital and equity resources, divert our management s attention or otherwise negatively impact our operating results. We may experience difficulties in implementing or enhancing new information systems. Business interruptions could adversely affect our business. If we fail to maintain an effective system of disclosure controls or internal controls over financial reporting, our business and stock price could be adversely affected.

Full 10-K form ▸

1114925--9/11/2007--LANTRONIX_INC