13606--12/11/2008--WHITE_ELECTRONIC_DESIGNS

related topics

{customer, product, revenue}

{product, market, service}

{regulation, government, change}

{condition, economic, financial}

{personnel, key, retain}

{tax, income, asset}

{stock, price, operating}

{property, intellectual, protect}

{system, service, information}

{operation, natural, condition}

{stock, price, share}

{cost, regulation, environmental}

{control, financial, internal}

{acquisition, growth, future}

{financial, litigation, operation}

Current economic conditions may adversely affect our industry, business and results of operations. We are dependent on sales to defense-related companies for a large portion of our net sales and profits, and changes in military spending levels and patterns could negatively affect us. The transition of the U.S. defense industry to purchase commercial off-the-shelf products and other trends within our industry could negatively affect us. The competitive bid process for government contracts may negatively affect us. Our goodwill has been impaired and may become impaired in the future. We have made and may make other acquisitions and cannot assure you that any future acquisitions will be successful. Our customers may cancel their orders, change production quantities or delay production at any time, which could materially reduce our net sales and operating results. We have a concentrated customer base and, as a result, our net sales could decline significantly if we lose a major customer. We depend on military prime contractors for the sale of our products and the failure of these customers to achieve significant sales of products incorporating our components would reduce our net sales and operating results. We depend on the continuing trend of outsourcing by prime military contractors, which is subject to factors beyond our control. Our failure to comply with United States government laws and regulations would reduce our ability to be awarded future military business. We may have an adverse resolution of litigation which may harm our operating results or financial condition. We may fail to meet projected financial results because our net sales, gross profits and net income will fluctuate from period to period. We have a lengthy sales cycle, which increases the likelihood that our quarterly net sales will fluctuate and which may, in turn, adversely affect the market price of our common stock. Our failure to detect defects in our products could materially harm our relationship with customers, our reputation and our business. Our operating results could be seriously harmed if the markets in which we sell our products do not grow. Downturns in the defense and aerospace markets could reduce the value of our inventories and cause a reduction in our profits. We are dependent on international markets for a large portion of our purchases and sales. If we are unable to retain employees with key technical expertise, our financial condition and future prospects could be materially harmed. If we are unable to protect our intellectual property or if we are found to have infringed third party intellectual property rights, our business could be adversely and materially affected. Our business is dependent upon retaining key personnel and attracting new employees. Our failure to comply with environmental regulations could subject us to costs and production delays. If our selling prices decline and we fail to reduce our costs, our sales and operating results will decline. If we fail to develop, introduce and sell new products or fail to develop and implement new manufacturing technologies, our operating results could be adversely affected. Increasing competition could reduce the demand for our products. We depend on limited suppliers for certain critical raw materials. Our inability to obtain sufficient raw materials at favorable prices could increase our prices or otherwise harm our business. Terrorism and the global responses to terrorism, the unsettled world political situations and perceived nuclear threats increase uncertainties with respect to many of our businesses and may adversely affect our business and results of operations. While we believe our control systems are effective, there are inherent limitations in all control systems, and misstatements due to error or fraud may occur and not be detected. Our Board of Directors is authorized to issue shares of preferred stock that could have rights superior to our outstanding shares of common stock, and, if issued, could adversely impact the value of our common stock.

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13606--12/11/2008--WHITE_ELECTRONIC_DESIGNS_CORP