32198--4/3/2006--EMS_TECHNOLOGIES

related topics

{product, market, service}

{customer, product, revenue}

{personnel, key, retain}

{acquisition, growth, future}

{stock, price, share}

{operation, international, foreign}

{property, intellectual, protect}

{stock, price, operating}

{gas, price, oil}

{provision, law, control}

{capital, credit, financial}

{control, financial, internal}

{product, candidate, development}

{regulation, change, law}

{system, service, information}

Our competitors marketing and pricing strategies could make their products more attractive than ours. This could cause reductions in customer orders or company profits. Slow public acceptance of new communications systems could limit purchases by our customers. We may encounter technical problems or contractual uncertainties, which can cause delays, added costs, lost sales, and liability to customers. Our transitions to new product offerings can be costly and disruptive, and could adversely affect our net sales or profitability. Our products may inadvertently infringe third party patents, which could create substantial liability to our customers or the third-party patent owners. If our customers are combined through merger or acquisition, their combined purchases of our products may decline or they may increase their price concession demands, adversely affecting our net sales or earnings. We may not be successful in protecting our intellectual property. For the year ended December 31, 2005, we identified two material weaknesses and several significant deficiencies in our internal control over financial reporting. If we fail to maintain effective internal control over financial reporting, we may not be able to provide timely and accurate financial statements. This could cause investors to lose confidence in our reported financial results and have a negative effect on the trading price of our securities. Our success depends on our ability to attract and retain a highly skilled workforce. The future success of our business strategies and operations could depend on effective succession plans as senior management members reach retirement. We depend on highly skilled suppliers, who may become unavailable or fail to achieve desired levels of technical performance. Changes in regulations that limit the availability of radio frequency licenses or otherwise result in increased expenses could cause our net sales or earnings to decline. The export license process for space products has become uncertain, increasing the chance that we may not obtain required export licenses in a timely or cost-effective manner. Export controls on space technology restrict our ability to hold technical discussions with foreign customers, suppliers and internal engineering resources, which reduces our ability to obtain sales from foreign customers or to perform contracts with the desired level of efficiency or profitability. Economic or political conditions in other countries could cause our net sales or earnings to decline. Our net sales of wireless communications could be affected by public health concerns. Unfavorable currency exchange rate movements could result in foreign exchange losses and cause our earnings to decline. Our net sales in certain markets depend on the availability and performance of other companies with which we have marketing relationships. Customer orders in backlog may not result in sales. Our products typically carry warranties, and the costs to us to repair or replace defective products could exceed the amounts we have experienced historically. Changes in our consolidated effective income tax rate and the related effect on our results can be difficult to predict. Our business and revenue growth could be limited by our inability to obtain additional financing. We may not effectively manage possible future growth, which could result in reduced earnings. We may make acquisitions and investments that could adversely affect our business. Risks Related to our Common Stock Our quarterly results are volatile and difficult to predict. If our quarterly performance results fall short of market expectations, the market value of our shares is likely to decline. Our share price may fluctuate significantly, and an investor may not be able to sell our shares at a price that would yield a favorable return on investment. Future sales of our common stock may cause our stock price to decline. Provisions in our governing documents and law could prevent or delay a change of control not supported by our Board of Directors.

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32198--4/3/2006--EMS_TECHNOLOGIES_INC