26058--5/15/2007--CTS

related topics

{operation, international, foreign}

{customer, product, revenue}

{product, market, service}

{debt, indebtedness, cash}

{control, financial, internal}

{cost, operation, labor}

{cost, regulation, environmental}

{loan, real, estate}

{provision, law, control}

{personnel, key, retain}

{stock, price, operating}

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 CTS manufactures may contain design or manufacturing defects that could result in reduced demand for CTS 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, could 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 indenture governing CTS convertible senior subordinated notes 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. The Moorpark and Santa Clara accounting investigation and restatements may harm CTS business in the future. CTS failure to maintain effective internal control over financial reporting may be insufficient to allow it to accurately report its financial results or prevent fraud, which could cause its financial statements to become materially misleading and adversely affect the trading price of its common stock.

Full 10-K form ▸

26058--5/15/2007--CTS_CORP