320121--5/23/2006--TELOS_CORP

related topics
{customer, product, revenue}
{property, intellectual, protect}
{personnel, key, retain}
{regulation, government, change}
{condition, economic, financial}
{product, liability, claim}
{product, market, service}
{capital, credit, financial}
{regulation, change, law}
{acquisition, growth, future}
{stock, price, operating}
The Company s ability to maintain sufficient liquidity and access to capital markets, including the ability to successfully restructure its balance sheet may have a significant impact on its business. The Company depends on the U.S. government for a significant portion of its sales. U.S. government contracts generally are not fully funded at inception and are subject to termination. The Company s earnings and margins depend on its ability to perform under its contracts. The Company s earnings and margins depend on subcontractor performance and raw material and component availability and pricing. The Company s future success will depend, in part, on its ability to develop new technologies and maintain a qualified workforce to meet the needs of its customers. Developing new technologies entails significant risks and uncertainties that may not be covered by indemnity or insurance. Operating results may fluctuate and future revenues and profitability are uncertain. Operating results may be adversely affected by the uncertain geopolitical environment and unfavorable economic and market conditions. The business environment is highly competitive and, if we do not compete effectively, we may suffer price reductions, reduced gross margins and loss of market share. Some of the Company s security solutions have lengthy sales and implementation cycles. The Company relies on its intellectual property, and any failure to protect, or any misappropriation of, its intellectual property could harm its business. The Company could become subject to claims of infringement of intellectual property of others, which could be costly to defend and which could harm our business. The Company depends on key personnel to manage its business effectively and may not be successful in attracting and retaining such personnel. Compliance with rules and regulations concerning corporate governance is costly and could harm the Company s business. Any potential future acquisitions, strategic investments, divestitures or mergers may subject the Company to significant risks, any of which could harm the Company s business.

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