32621--7/11/2008--EMERSON_RADIO

related topics

{customer, product, revenue}

{product, market, service}

{debt, indebtedness, cash}

{stock, price, operating}

{tax, income, asset}

{stock, price, share}

{product, liability, claim}

{acquisition, growth, future}

{property, intellectual, protect}

{interest, director, officer}

{provision, law, control}

{operation, international, foreign}

{condition, economic, financial}

{loan, real, estate}

A number of our directors and senior executive officers also are managing directors or senior officers of Grande and have loyalties and fiduciary obligations to both Grande and Emerson; those dual positions subject such persons to conflicts of interest in related party transactions which may cause such related party transactions to have consequences to us that are less favorable than those which we could have attained in comparable transactions with unaffiliated entities.. The loss or significant reduction in business of any of our key customers, including Wal-Mart, Target, and Kmart, could materially and adversely affect our revenues and earnings. We depend on a limited number of suppliers for our products. The inability to secure our products could reduce our revenues and adversely affect our relationship with our customers. If our contract manufacturers are unable to deliver our products in the required amounts and in a timely fashion, we could experience delays or reductions in shipments to our customers which could materially and adversely affect our revenues and our relationship with our customers. Unanticipated disruptions in our operations, slowdowns or shutdowns by our suppliers, manufacturers and shipping companies could adversely affect our ability to deliver our products and service our customers which could materially and adversely affect our revenues and our relationship with our customers. The failure to maintain our relationships with our licensees, licensors and distributors or the failure to obtain new licensees, licensors or distribution relationships could materially and adversely affect our revenues and earnings. Our business could be materially and adversely affected if we cannot protect our intellectual property rights or if we infringe on the intellectual property rights of others. Our revenues and earnings could be materially and adversely affected if we cannot anticipate market trends or enhance existing products or achieve market acceptance of new products. Foreign regulations and changes in the political, public health and economic conditions in the foreign countries in which we operate our business could materially and adversely affect our revenues and earnings. The inability to use our tax net operating losses could result in a charge to earnings and could require us to pay higher taxes We are subject to intense competition in the industry in which we operate, which could cause material reductions in the selling price of our products or losses of our market share. The seasonality of our business, changes in consumer spending and economic conditions may cause our quarterly operating results to fluctuate and cause our stock price to decline. If our sales during the holiday season fall below our expectations, our operating results also could fall below expectations. If our third party sales representatives fail to adequately promote, market and sell our products, our revenues could significantly decrease. We could be exposed to product liability or other claims for which our product liability or other insurance may be inadequate. A decline in the value of the auction rate securities included in our investments could materially adversely affect our liquidity. We may seek to make acquisitions that prove unsuccessful or strain or divert our management s attention and our capital resources. Any substantial indebtedness we incur from time to time may adversely affect our ability to obtain additional funds and may increase our vulnerability to economic or business downturns. We have pledged substantially all of our assets to secure our borrowings under our credit facilities and are subject to covenants that may restrict our ability to operate our business. The market price of our common stock has experienced significant price and volume fluctuations from time to time. Grande s controlling interest in our common stock as well as our organizational documents and Delaware law make it difficult for us to be acquired without the consent and cooperation of Grande, our board of directors and management. If our common stock is de-listed from the American Stock Exchange, shareholders liquidity in their shares may be adversely affected and shareholders may have difficulty selling their shares or attaining a satisfactory price.

Full 10-K form ▸

32621--7/11/2008--EMERSON_RADIO_CORP