1123494--3/15/2007--HARVARD_BIOSCIENCE

related topics

{acquisition, growth, future}

{cost, operation, labor}

{property, intellectual, protect}

{regulation, change, law}

{product, market, service}

{operation, international, foreign}

{condition, economic, financial}

{tax, income, asset}

{product, liability, claim}

{provision, law, control}

{customer, product, revenue}

{personnel, key, retain}

{debt, indebtedness, cash}

{interest, director, officer}

{stock, price, share}

{competitive, industry, competition}

If we are unable to complete the divestiture of our Capital Equipment Business segment on attractive terms, our ability to implement our business strategy and our financial condition and results of operations may be materially adversely affected. By completing the divestiture of the Capital Equipment Business, we will be losing a substantial source of our revenues. Our decision to divest of our Capital Equipment Business may cause potential customers to be less likely to commit to purchases of capital equipment from this business segment, which may materially adversely affect revenues generated from, and value that we may receive upon the sale of, our Capital Equipment Business segment. The divestiture of our Capital Equipment Business segment may disrupt our business or result in costs that could have a material adverse effect on our financial condition and results of operations. Our 2002 merger with Genomic Solutions may fail to qualify as a reorganization for federal income tax purposes, resulting in the recognition of taxable gain or loss in respect of our treatment of the merger as a taxable sale. Our quarterly revenues will likely be affected by various factors, including the timing of purchases by customers and the seasonal nature of purchasing in Europe. Uncertain economic trends may adversely impact our business. If we engage in any acquisition, we will incur a variety of costs, and may never realize the anticipated benefits of the acquisition. We may not realize the expected benefits from acquisitions due to difficulties integrating the businesses, operations and product lines. We have been actively engaged in acquiring and divesting companies. As a result, we may be the subject of lawsuits from either the acquiring company s stockholders, an acquired company s previous stockholders, the divested company s stockholders or our current stockholders. Accounting for goodwill and other intangible assets may have a material adverse effect on us. Future changes in financial accounting standards may adversely affect our reported results of operations. If our accounting estimates are not correct, our financial results could be adversely affected. Our business is subject to economic, political and other risks associated with international revenues and operations. We may lose money when we exchange foreign currency received from international revenues into U.S. dollars. Additional costs for complying with recent changes in Securities and Exchange Commission, NASDAQ Stock Market and accounting rules could adversely affect our profits. If we are not able to manage our growth, our operating profits or losses may be adversely impacted. If we fail to retain key personnel and hire, train and retain qualified employees, we may not be able to compete effectively, which could result in reduced revenue or increased costs. Our competitors and potential competitors may develop products and technologies that are more effective or commercially attractive than our products. Our products compete in markets that are subject to technological change, and therefore one or more of our products could be made obsolete by new technologies. Our $20.0 million credit facility contains certain financial and negative covenants, the breach of which may adversely affect our financial condition. Failure to raise additional capital or generate the significant capital necessary to implement our acquisition strategy, expand our operations and invest in new products could reduce our ability to compete and result in lower revenue. If we are unable to effectively protect our intellectual property, third parties may use our technology, which would impair our ability to compete in our markets. We may be involved in lawsuits to protect or enforce our patents that would be expensive and time-consuming. Our success will depend partly on our ability to operate without infringing on or misappropriating the intellectual property rights of others. Many of our current and potential customers are from the pharmaceutical and biotechnology industries and are subject to risks faced by those industries. If GE Healthcare (formerly Amersham Biosciences) terminates its distribution agreements with us, fails to renew them on favorable terms or fails to perform its obligations under the distribution agreements, it could impair the marketing and distribution efforts for some of our products and result in lost revenues. Customer, vendor and employee uncertainty about the effects of any of our acquisitions could harm us. Ethical concerns surrounding the use of our products and misunderstanding of the nature of our business could adversely affect our ability to develop and sell our existing products and new products. Our stock price has fluctuated in the past and could experience substantial declines in the future and, as a result, management s attention may be diverted from more productive tasks. Provisions of Delaware law and of our charter and bylaws may make a takeover more difficult, which could cause our stock price to decline. Cash dividends will not be paid on our common stock.

Full 10-K form ▸

1123494--3/15/2007--HARVARD_BIOSCIENCE_INC