317771--3/14/2006--TELLABS

related topics

{customer, product, revenue}

{product, market, service}

{property, intellectual, protect}

{operation, international, foreign}

{regulation, change, law}

{cost, regulation, environmental}

{cost, operation, labor}

{personnel, key, retain}

{acquisition, growth, future}

{competitive, industry, competition}

{stock, price, operating}

{regulation, government, change}

Our operating results will fluctuate, which may cause volatility in our stock price. The market for communications equipment products and services is rapidly changing and remains very competitive. Demand for our products may decrease if we do not anticipate and adapt rapidly to changing technology and customer requirements. Our new products will be early in their life cycles and will face challenges for market acceptance. A limited number of our customers represents a large portion of our revenues. Any decrease in revenue from these customers could have an adverse effect on our business, financial condition, operating results and prospects. Our revenues depend on the capital spending programs and financial capabilities of our customers and ultimately on the demand for new telecommunications services from end users. We operate in a highly competitive industry. Conditions in international markets could affect our operations. We are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows. We may encounter difficulties obtaining necessary raw materials and supplies. We depend on contract manufacturers and third-party service providers. We may be unable to sell customer-specific inventory, which could result in lower gross profit margins and net income. Intellectual property rights may not be adequate to protect our business. We may be subject to intellectual property infringement claims that are costly and time consuming to defend. These claims could limit our ability to use some technologies in the future. Product quality or performance problems could impact our business. We may not realize expected benefits from any restructuring initiatives. We may be unable to identify or complete strategic acquisitions, investments and dispositions. We are subject to numerous and changing industry regulations and standards. We operate in an environment subject to changing governmental regulations. Our failure to comply with applicable environmental laws and regulations worldwide could adversely impact our business and results of operations. Our business would be adversely affected if we are unable to attract and retain key personnel.

Full 10-K form ▸

317771--3/14/2006--TELLABS_INC