1232229--9/13/2007--SYNTAX-BRILLIAN

related topics

{customer, product, revenue}

{product, market, service}

{control, financial, internal}

{tax, income, asset}

{stock, price, operating}

{acquisition, growth, future}

{condition, economic, financial}

{property, intellectual, protect}

{product, liability, claim}

{personnel, key, retain}

{operation, international, foreign}

{gas, price, oil}

{loan, real, estate}

{stock, price, share}

{cost, regulation, environmental}

We have significant accounts receivable from our largest distributor. We face competition from a number of the world s leading consumer electronics companies. We rely on contract manufacturers and assemblers for a portion of our production requirements, and any interruptions of these arrangements could increase our costs, disrupt our supply chain, and result in our inability to deliver our HDTV products, which would adversely affect our results of operations. Shortages of components and materials necessary to the production of our products may delay or reduce our sales and increase our costs. If we do not accurately forecast our needs for components and materials, we may be forced to make inventory adjustments, which may adversely affect our results of operations. We have only recently achieved profitability, and we may be unable to sustain profitability in future periods. We must effectively manage our growth. We may not realize the benefits we expected from the merger between Brillian Corporation and Syntax Groups Corporation or our acquisition of Vivitar. Our operations and sales in foreign countries expose us to a variety of risks. Our business depends on new products and technologies. We must protect our intellectual property and could be subject to infringement claims by others. The cyclical nature of the consumer electronics industry may cause substantial period-to-period fluctuations in our operating results. Our operating results may have significant periodic and seasonal fluctuations. Our products are complex and may require modifications to resolve undetected errors or unforeseen failures, which could lead to an increase in our warranty claims and costs, a loss of customers, or a decline in market acceptance of our products. Our LCoS products may not achieve commercial success or widespread market acceptance. We previously experienced low manufacturing yields in commencing production of LCoS microdisplays, and our business depends on our ability to maintain satisfactory manufacturing yields. Our Arizona facility and its high-volume LCoS microdisplay manufacturing line are important to our LCoS success. Our executive officers and key personnel are critical to our business, and these officers and personnel may not remain with us in the future. Any acquisitions that we undertake could be difficult to integrate, disrupt our business, dilute stockholder value, and harm our operating results. Charges to earnings resulting from the application of the purchase method of accounting may adversely affect the market value of our common stock. We are subject to governmental regulations. Our effective tax rate may increase or fluctuate, which could increase our income tax expense and reduce our net income. Risks Related to Our Common Stock The market price for our common stock may be volatile, and many factors could cause the market price of our common stock to fall. We have determined that our internal controls over financial reporting are currently ineffective. The lack of effective internal controls could adversely affect our financial condition and ability to carry out our strategic business plan.

Full 10-K form ▸

1232229--9/13/2007--SYNTAX-BRILLIAN_CORP