30828--3/31/2006--COBRA_ELECTRONICS

related topics

{customer, product, revenue}

{cost, operation, labor}

{stock, price, operating}

{condition, economic, financial}

{competitive, industry, competition}

{operation, international, foreign}

{product, market, service}

{system, service, information}

{debt, indebtedness, cash}

{property, intellectual, protect}

{personnel, key, retain}

{control, financial, internal}

{cost, regulation, environmental}

Our business, financial condition or results of operation could be adversely affected by our 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 our key customers and failure by our key customers to purchase expected quantities of our products could have an adverse effect on our business. If we are unable to obtain sufficient amounts of high quality products on a timely basis, we may not be able to meet our customers needs and may suffer reduced sales. Shortages of components and materials may disrupt the supply of our products. We rely on retailers and third party distributors to sell our products. We compete 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. Any downturn in the 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. We are subject to various governmental regulations that could adversely affect our business. If we are unable to enforce or defend our rights with respect to intellectual property, our business may be adversely affected. Our profitability and financial condition depends on our ability to collect on amounts due from our 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. 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 future performance. The price of our common stock may be subject to sudden decreases due to the potential volatility of the price of our common stock. 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. Our business could be adversely affected by a disruption to our Chicago, Illinois facility s operations. Damage to or disruptions in the operations of our computer infrastructure and software systems could harm our business. 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.

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30828--3/31/2006--COBRA_ELECTRONICS_CORP