1160513--3/31/2006--SUNTRON

related topics

{customer, product, revenue}

{acquisition, growth, future}

{product, market, service}

{cost, operation, labor}

{operation, international, foreign}

{cost, regulation, environmental}

{control, financial, internal}

{personnel, key, retain}

{stock, price, share}

{property, intellectual, protect}

We are dependent upon the highly competitive electronics industry, and excess capacity or decreased demand for products produced by this industry could result in increased price competition as well as a decrease in our gross margins and unit volume sales. We are dependent upon a small number of customers for a large portion of our net sales, and a decline in sales to major customers could harm our results of operations. Our financial condition could suffer if we fail to obtain a sufficient award in pending litigation. Our customers may cancel their orders, change production quantities, or delay production. If we are unable to respond to rapid technological change and process development, we may not be able to compete effectively. Operating in foreign countries exposes us to increased risks that could adversely affect our results of operations. If we are unsuccessful in managing future opportunities for growth, our results of operations could be harmed. Our results of operations are affected by a variety of factors, which could cause our results of operations to fail to meet expectations. We are dependent on limited and sole source suppliers for electronic components and may experience component shortages, which could cause us to delay shipments to customers. We depend on our key personnel and may have difficulty attracting and retaining skilled employees. Our manufacturing processes depend on the collective EMS industry experience of our employees. If these employees were to leave and take this knowledge with them, our manufacturing processes may suffer and we may not be able to compete effectively. Our failure to comply with the requirements of environmental laws could result in fines and revocation of permits necessary to our manufacturing processes. We may be subject to risks associated with acquisitions, and these risks could harm our results of operations. Failure to maintain an effective system of internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could inhibit our ability to accurately report our financial results and have a material adverse impact on our business and stock price. Our stock is traded on the Nasdaq SmallCap Market and if we are unable to sustain compliance with their listing requirements this could adversely impact our ability to use the capital markets to raise additional capital and our stockholders may be unable to efficiently sell their shares of our common stock.

Full 10-K form ▸

1160513--3/31/2006--SUNTRON_CORP