30828--3/15/2010--COBRA_ELECTRONICS

related topics

{customer, product, revenue}

{condition, economic, financial}

{cost, operation, labor}

{control, financial, internal}

{capital, credit, financial}

{regulation, government, change}

{operation, international, foreign}

{debt, indebtedness, cash}

{acquisition, growth, future}

{product, market, service}

{tax, income, asset}

{system, service, information}

{stock, price, operating}

{property, intellectual, protect}

{personnel, key, retain}

{gas, price, oil}

{competitive, industry, competition}

{cost, regulation, environmental}

{regulation, change, law}

Business, financial condition or results of operation could be adversely affected by the inability to enhance existing products or introduce new products to meet consumer preferences, including timely introductions as new consumer technologies are introduced. Failure to maintain relationships with key customers and failure by key customers to purchase expected quantities of our products could have an adverse effect on our business. If the Company is unable to obtain sufficient amounts of high quality products on a timely basis, customer needs may not be met and reduced sales may result. Shortages of components and materials may disrupt the supply of products. Reliance on retailers and third party distributors to sell our products. The Company competes with a large number of companies in the consumer electronics business, and if we are unable to compete effectively, our business, financial condition and results of operations may be materially affected. A downturn in global economic and market conditions could negatively impact our business, financial condition and results of operations. International markets expose us to political and economic risks in foreign countries, as well as to risks relating to currency values and import/export policies. The Company is subject to various governmental regulations that could adversely affect the business. The Company is subject to governmental regulation in the countries in which it operates. Mobile navigation devices and other GPS-enabled products depend upon a network of satellites maintained by the United States Department of Defense. If these satellites become inoperable or the policies of the United States regarding civilian use of the GPS system change, there would be a material effect on our business. If we are unable to enforce or defend our rights with respect to intellectual property, our business may be adversely affected. We may be required to record impairment charges for intangible assets in future periods. Our profitability and financial condition depend on our ability to collect on amounts due from customers. Our secured credit facility contains restrictive covenants and our failure to comply with those restrictions could result in a default, which could have a material adverse effect on our business, financial condition and results of operations. Our inability to secure credit that we may require in the future may negatively impact liquidity. Economic conditions may limit the access to credit needed by our customers and suppliers. Sales of our products are subject to seasonal variations and, as a result, our quarterly operating results may fluctuate and may not be a reliable indicator of our future performance. The price of our common stock may be subject to sudden decreases due to the inherent volatility of operating and competitive factors. The loss of key members of our management and technical team may adversely affect our business. Our performance depends on favorable relations with our employees and our ability to attract and retain them. Any deterioration of those relations, increase in labor costs or inability to attract and retain employees could adversely affect our business, financial condition and results of operations. Business could be adversely affected by a disruption to our Chicago, Illinois and Runcorn, UK facilities. Damage to or disruptions in the operations of our computer infrastructure and software systems could harm our business, financial condition and results of operations. Our internal controls over financial reporting may not be considered effective, which could result in possible regulatory sanctions and a decline in our stock price. The Company may be unable to successfully consolidate and integrate the operations of acquired businesses, such as PPL, which may adversely affect the Company's stock price, operating results and financial condition. Effects of climate change on the Company's business.

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30828--3/15/2010--COBRA_ELECTRONICS_CORP