1323115--3/16/2007--Cardiac_Science

related topics

{customer, product, revenue}

{product, market, service}

{acquisition, growth, future}

{property, intellectual, protect}

{product, liability, claim}

{tax, income, asset}

{operation, natural, condition}

{stock, price, operating}

{stock, price, share}

{personnel, key, retain}

{provision, law, control}

{system, service, information}

{operation, international, foreign}

The unpredictability of our quarterly revenues and operating results may cause the trading price of our stock to decrease. If we are unsuccessful in developing and commercializing new versions of our products, our operating results will suffer. We rely primarily on our distributors to generate sales of our products; if we do not maintain our relationships with distributors or they fail to successfully distribute our products, our sales and operating results will likely suffer. Interruption or cancellation of supply, and our inability to secure alternative suppliers on a timely basis, would likely harm our ability to ship products to our customers, decrease our revenues and increase our costs. Inadequate levels of reimbursement from governmental or other third-party payers for procedures using our products may cause revenues to decrease. Our business is subject to intense competition, which may reduce the demand for our products. Quality problems with our processes, goods and services could harm our reputation for producing high quality products and erode our competitive advantage. 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. Our international business is subject to risks that could adversely affect our profitability and operating results. 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. Warranty and product liability claims could adversely impact our earnings and reputation. Failure to adequately protect our intellectual property rights may cause our expenses to increase and our business to suffer. Adverse outcomes in our patent or other litigation could result in monetary payments and royalties, decreased sales of our products and loss of proprietary rights. Our technology may become obsolete, which would negatively impact our ability to sell our products. 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. Our research and development efforts rely upon acquisitions, investments and alliances, and we cannot guarantee that any previous or future acquisitions, investments or alliances will be successful. Charges to earnings resulting from the application of the purchase method of accounting may adversely affect the market value of our common stock. Future issuances of our common stock could dilute existing stockholders and cause our stock price to decline. 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.

Full 10-K form ▸

1323115--3/16/2007--Cardiac_Science_CORP