206030--2/17/2009--AXSYS_TECHNOLOGIES

related topics

{regulation, government, change}

{product, market, service}

{cost, regulation, environmental}

{acquisition, growth, future}

{customer, product, revenue}

{cost, contract, operation}

{operation, international, foreign}

{personnel, key, retain}

{stock, price, operating}

{debt, indebtedness, cash}

{financial, litigation, operation}

{provision, law, control}

{property, intellectual, protect}

{competitive, industry, competition}

We depend on contracts with the U.S. federal government for a significant portion of our sales. Most of these contracts are subject to termination and renegotiation by the U.S. federal government at any time. The loss of BAE Systems as a customer or a significant reduction in sales to BAE Systems could have a materially adverse effect on our business, financial condition and results of operations. U.S. federal government spending priorities may change in a manner adverse to our business. We could be suspended or debarred from contracting with the federal government. The failure to obtain, or any delays in obtaining, export authorizations from the federal government in connection with the export of our products, or the imposition of sanctions for failing to comply with the export control laws and regulations, could have a materially adverse effect on our business, financial condition and results of operations. We must comply with complex procurement laws and regulations. We may not be able to implement our business plan effectively because the industries in which we operate are subject to fluctuations and other factors that are difficult to forecast. If we are unable to adapt to technological change, demand for our products may be reduced. We operate in competitive markets with competitors who may have greater resources than we possess, which could reduce the volume of products we can sell and our operating margins. Our backlog is subject to reduction and cancellation. We operate internationally, which exposes us to the risks of doing business abroad. Our sales growth and earnings may be reduced if we cannot implement our acquisition strategy. We may be unable to integrate our acquired companies successfully. We may experience production delays if suppliers fail to deliver materials to us. Our future growth and continued success are dependent on our key personnel. Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products, services and brand. We are subject to significant environmental, health and safety laws and regulations and related compliance expenditures and liabilities. As a result of processing beryllium, we are subject to liability and compliance costs. If we are unable to maintain and upgrade our manufacturing capabilities, our ability to compete could be materially and adversely impacted. Failure to anticipate technical problems, estimate costs accurately or control costs during performance of a fixed-price contract may reduce our profit or cause a loss. We are dependent in part upon our relationships and strategic alliances with industry participants in order to generate revenue. Restrictive covenants under our credit facility may reduce our operating and financial flexibility. A portion of our business is dependent upon obtaining and maintaining required security clearances. The concentration of our common stock ownership with our Chairman of the Board and Chief Executive Officer may limit our ability to influence corporate matters. Provisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable.

Full 10-K form ▸

206030--2/17/2009--AXSYS_TECHNOLOGIES_INC