1121439--3/31/2006--EMAGEON

related topics

{acquisition, growth, future}

{personnel, key, retain}

{product, liability, claim}

{property, intellectual, protect}

{product, market, service}

{customer, product, revenue}

{control, financial, internal}

{regulation, government, change}

{system, service, information}

{interest, director, officer}

{stock, price, operating}

We have incurred substantial operating losses in the past and may not be profitable in the future. Our operating results may fluctuate, which makes quarterly results difficult to predict and could cause our stock price to decline or exhibit volatility. Our failure to manage growth effectively may strain our management, personnel and other resources, which could impair our ability to meet customer requirements. Acquisitions could result in integration difficulties, dilution or other adverse financial consequences. Analogic Corporation, the former owner of Camtronics, identified a material weakness in its internal control over financial reporting due to control deficiencies at Camtronics, and we cannot be certain that such control deficiencies have been fully remediated, or that other control deficiencies will not be identified that will lead us to conclude that a material weakness in our internal control over financial reporting exists. We depend on highly specialized personnel, and the loss or failure to identify, hire, motivate and retain additional highly specialized personnel could adversely affect our ability to grow our business. We are dependent on our senior executive management, and the loss of any member of senior executive management may prevent us from managing and growing our businesses effectively. The loss of Ascension Health or future major customers could materially and adversely affect our results of operations and financial condition because portions of our future revenues are tied to continuing relationships with significant customers. Our products are complex and are operated in a wide variety of network configurations, which could result in errors or product failures. Changes in our third-party reselling arrangements may affect our revenues and our ability to deliver a complete solution, which may adversely impact our revenue and cause customer dissatisfaction. We may not be able to respond to changes in our industry, competitive technologies, changes in customer requirements or evolving industry standards, which would result in reduced revenue and profit margins. Our customers depend on third-party reimbursement. A reduction or other change in third-party reimbursements to our customers could negatively affect our business by reducing the demand for our products or adversely impacting our pricing. If we fail to obtain or maintain necessary FDA clearances for our products, if such clearances are delayed, or if our products are subject to FDA recall, we will be unable to distribute and market some of our products. If we fail to comply with other potentially applicable health care regulations, we could face substantial penalties, and our business, operations, and financial condition could be adversely impacted. We may not be able to raise additional capital on acceptable terms to fund our operations, develop product enhancements or fund acquisitions, which could adversely affect our growth prospects. If the market for digital medical imaging products and services does not develop as we expect, our business strategy may be ineffective, and we may not be able to grow our business. Product liability claims may require us to pay damages, reduce the demand for our products, and harm our reputation. If we fail to protect our intellectual property rights, our competitors may take advantage of our ideas to compete more effectively with us. Our operating results could suffer if we become subject to a protracted infringement claim or litigation or a significant damage award. Our directors may not be held personally liable for certain actions, which could discourage stockholder suits against them.

Full 10-K form ▸

1121439--3/31/2006--EMAGEON_INC