1320947--9/30/2009--Diamond_Foods_Inc

related topics
{product, market, service}
{cost, regulation, environmental}
{acquisition, growth, future}
{condition, economic, financial}
{product, liability, claim}
{competitive, industry, competition}
{customer, product, revenue}
{personnel, key, retain}
{stock, price, operating}
{operation, international, foreign}
We face intense competition from national and regional competitors and snack food industry competitors that could negatively affect our results of operations. Sales to our top customer represented approximately 21% of our net sales. The loss of any major customer could adversely impact our business. Because we experience seasonal fluctuations in our sales, our quarterly results will fluctuate and our annual performance will depend largely on results from two quarters. We could be required to conduct product recalls; concerns with the safety and quality of food products could harm our sales or cause consumers to avoid our products. We depend on our key personnel and if we lose the services of any of these individuals, or fail to attract and retain additional key personnel, we may not be able to implement our business strategy or operate our business effectively. We recently acquired a microwave popcorn product line, and it is difficult to determine what the impact of that acquisition on our financial results will be. The acquisition of other product lines or businesses could pose risks to our profitability. Changes in the food industry, including changing dietary trends and consumer preferences, could reduce demand for our products. Developments in the walnut industry could threaten our position in the industry. Bioterrorism legislation could disrupt our supply of imported nuts. Government regulation could increase our costs of production and increase our legal and regulatory expenditures. The current global economic downturn and capital and credit market crisis may materially and adversely affect our business, financial condition and results of operations. We are subject to risks of doing business internationally.

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