26076--12/4/2008--CUBIC_CORP

related topics

{regulation, government, change}

{cost, contract, operation}

{customer, product, revenue}

{property, intellectual, protect}

{personnel, key, retain}

{operation, international, foreign}

{stock, price, operating}

{financial, litigation, operation}

{competitive, industry, competition}

{debt, indebtedness, cash}

We depend on government contracts for substantially all of our revenues and the loss of government contracts or a delay or decline in funding of existing or future government contracts could adversely affect our sales and cash flows and our ability to fund our growth. Government spending priorities may change in a manner adverse to our businesses. Our contracts with government agencies may be terminated or modified prior to completion, which could adversely affect our business. Failure to retain existing contracts or win new contracts under competitive bidding processes may adversely affect our revenue. Government audits of our contracts could result in a material charge to our earnings and have a negative effect on our cash position following an audit adjustment. Our international business exposes us to additional risks, including exchange rate fluctuations, foreign tax and legal regulations and political or economic instability that could harm our operating results. Our operating margins may decline under our fixed-price contracts if we fail to estimate accurately the time and resources necessary to satisfy our obligations. We may be liable for civil or criminal penalties under a variety of complex laws and regulations, and changes in governmental regulations could adversely affect our business and financial position. Our failure to identify, attract and retain qualified technical and management personnel could adversely affect our existing businesses. We may incur significant costs in protecting our intellectual property which could adversely affect our profit margins. Our inability to protect our patents and proprietary rights could adversely affect our businesses prospects and competitive positions. We compete primarily for government contracts against many companies that are larger, better capitalized and better known than us. If we are unable to compete effectively, our business and prospects will be adversely affected. The terms of our financing arrangements may restrict our financial and operational flexibility, including our ability to invest in new business opportunities. Our revenues could be less than expected if we are not able to deliver services or products as scheduled due to disruptions in supply. Failure to perform by one of our subcontractors could materially and adversely affect our contract performance and our ability to obtain future business. We may acquire other companies, which could increase our costs or liabilities or be disruptive. Our results of operations have historically fluctuated and may continue to fluctuate significantly in the future, which could adversely affect the market price of our common stock. CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING INFORMATION

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26076--12/4/2008--CUBIC_CORP_/DE/