1323115--3/16/2006--Cardiac_Science

related topics

{product, market, service}

{customer, product, revenue}

{product, liability, claim}

{acquisition, growth, future}

{tax, income, asset}

{property, intellectual, protect}

{regulation, change, law}

{product, candidate, development}

{operation, natural, condition}

{provision, law, control}

{personnel, key, retain}

{operation, international, foreign}

{stock, price, share}

Failure to successfully develop and commercialize new versions of our products would cause our operating results to suffer. If we fail to maintain our relationships with our distribution or strategic partners or such organizations fail to successfully distribute our products, our sales and operating results may suffer. If suppliers discontinue production of purchased components of our products, and we are unable to secure alternative sources for these components on a timely basis, our ability to ship products to our customers may be adversely affected, our revenues may decline and costs may increase as a result. Inadequate levels of reimbursement from governmental or other third-party payers for procedures using our products may cause revenues to decrease. If we fail to obtain or maintain applicable regulatory clearances or approvals for our products, or if clearances or approvals are delayed, we will be unable to commercially distribute and market our products in the U.S. and other jurisdictions. Our business is subject to intense competition, which may reduce the demand for our products. If we do not maintain or grow revenues from our support services or consumables, our operating and financial results may be negatively impacted. Our lack of customer purchase contracts and our limited order backlog make it difficult to predict sales and plan manufacturing requirements, which can lead to lower revenues, higher expenses and reduced margins. If market conditions cause us to reduce the selling price of our products, or our market share is negatively affected by the activities of our competitors, our margins and operating results will decrease. We are dependent upon licensed and purchased technology for some of our products, and we may not be able to renew these licenses or purchase agreements in the future. We are exposed to numerous risks associated with international operations. Charges to earnings resulting from the application of the purchase method of accounting may adversely affect the market value of our common stock. If we are unable to retain our executive officers and hire and retain other key personnel, we may not be able to sustain or grow our business. Undetected product errors or defects could result in increased warranty costs, loss of revenues, product recalls, delayed market acceptance, and claims against us. We may face product liability claims, which could cause our operating results to suffer. Our technology may become obsolete, which could negatively impact our ability to sell our products. Failure to adequately protect our intellectual property rights will likely cause our business to suffer. Our predecessors have been, and in the future we may be, involved in claims alleging infringement of intellectual property rights, which could be costly and time consuming. Our reliance on a principal manufacturing facility may impair our ability to respond to natural disasters or other unforeseen catastrophic events. We may make future acquisitions, which involve numerous risks that could impact our business and results of operations. We may need additional capital to continue our acquisition growth strategy. If we fail to successfully enter into strategic alliances to generate growth, our operating results may be negatively affected. Future issuances of our common stock could cause our stock price to decline. Compliance with changing regulation of corporate governance, public disclosure and accounting matters may result in additional expenses. Future changes in the accounting treatment for employee stock options may cause adverse fluctuations and affect our reported results of operations. Our charter documents and Delaware law contain provisions that could make it more difficult for a third party to acquire us. Utilization of our deferred tax assets may be limited and is dependent on future taxable income. Our future financial results could be adversely impacted by asset impairments.

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1323115--3/16/2006--Cardiac_Science_CORP