30828--3/30/2007--COBRA_ELECTRONICS

related topics

{customer, product, revenue}

{cost, operation, labor}

{control, financial, internal}

{condition, economic, financial}

{regulation, government, change}

{operation, international, foreign}

{competitive, industry, competition}

{product, market, service}

{system, service, information}

{debt, indebtedness, cash}

{personnel, key, retain}

{property, intellectual, protect}

{stock, price, operating}

{acquisition, growth, future}

{gas, price, oil}

{cost, regulation, environmental}

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 unable to compete effectively, the business, financial condition and results of operations may be materially affected. Any downturn in the global economic and market conditions could negatively impact the 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 the Company is unable to enforce or defend its rights with respect to intellectual property, the business may be adversely affected. Profitability and financial condition depends on the Company s ability to collect on amounts due from customers. 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 the business. Sales of products are subject to seasonal variations and, as a result, the quarterly operating results may fluctuate and may not be a reliable indicator of 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 management and technical team may adversely affect the business. Performance depends on favorable relations with employees and the 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. Business could be adversely affected by a disruption to the Chicago, Illinois facility s operations. Damage to or disruptions in the operations of the computer infrastructure and software systems could harm the business. Internal controls over financial reporting may not be considered effective, which could result in possible regulatory sanctions and a decline in the stock price. The Company may be unable to successfully consolidate and integrate the operations of businesses acquired, which may adversely affect the Company s stock price, operating results and financial condition.

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30828--3/30/2007--COBRA_ELECTRONICS_CORP