26058--2/27/2006--CTS

related topics

{product, market, service}

{operation, international, foreign}

{customer, product, revenue}

{debt, indebtedness, cash}

{cost, operation, labor}

{cost, regulation, environmental}

{loan, real, estate}

{provision, law, control}

{personnel, key, retain}

{product, liability, claim}

{stock, price, operating}

Because CTS currently derives a significant portion of its revenues from a small number of customers, any decrease in orders from these customers could have an adverse effect on CTS business, financial condition and operating results. CTS is subject to intense competition in the EMS industry. CTS may be unable to compete effectively against competitors in its Components and Sensors segment. CTS may be unable to keep pace with rapid technological changes that could make some of its products or processes obsolete before it realizes a return on its investment. CTS customers have canceled, and may in the future cancel, their orders, change production quantities or locations or delay production. CTS sells products to customers in cyclical industries, which are subject to significant downturns that could materially adversely affect CTS business, financial condition and operating results. Because CTS derives a substantial portion of its revenues from customers in the automotive, computer and communications industries, it is susceptible to trends and factors affecting those industries as well as the success of its customers products. Products we manufacture may contain design or manufacturing defects that could result in reduced demand for our products or services and liability claims against us. CTS is exposed to fluctuations in foreign currency exchange rates that have adversely affected, and may continue to adversely affect, CTS business, financial condition and operating results. CTS operating results vary significantly from period to period. CTS faces risks relating to its international operations. CTS may further restructure its operations, which may materially adversely affect CTS business, financial condition and operating results. CTS may explore acquisitions that complement or expand CTS business as well as divestitures of various business operations. CTS may not be able to complete these transactions and these transactions, if executed, pose significant risks and may materially adversely affect CTS business, financial condition and operating results. If CTS is unable to protect its intellectual property or it infringes, or is alleged to infringe, on another person s intellectual property, CTS business, financial condition and operating results could be materially adversely affected. CTS may experience shortages and increased costs of raw material and required electronic components. Loss of CTS key management and other personnel, or an inability to attract key management and other personnel, could materially affect CTS business. CTS is subject to a variety of environmental laws and regulations that expose CTS to potential financial liability. CTS indebtedness may adversely affect its financial health. CTS credit facility and the agreements governing CTS convertible subordinated notes and debentures contain provisions that could materially restrict CTS business. Anti-takeover provisions could delay, deter or prevent a change in control of CTS even if the change in control would be beneficial to CTS shareholders.

Full 10-K form ▸

26058--2/27/2006--CTS_CORP