33113--5/27/2010--ENVIRONMENTAL_TECTONICS_CORP

related topics
{regulation, government, change}
{customer, product, revenue}
{operation, international, foreign}
{system, service, information}
{cost, regulation, environmental}
{capital, credit, financial}
{stock, price, operating}
{product, market, service}
{financial, litigation, operation}
{cost, contract, operation}
Our sources of revenues are not consistent; they tend to be concentrated within a few contracts with a few customers and in a particular mix. It cannot be assumed that any of these contracts, customers or mix will recur in future years. Our debt is concentrated and directly dependent upon either direct arrangements or under guarantee arrangements with H. F. Lenfest. We need to attain validation from the U.S. defense agencies of our Authentic Tactical Fighting Systems technology. Our operations involve rapidly evolving products and technological change. Long term contracts under percentage of completion ( POC ) accounting comprise a significant portion of our fiscal 2010 revenues and our backlog at February 26, 2010. Delays in the delivery of our products may prevent us from invoicing our costs and estimated earnings on uncompleted contracts. In the event we suffer production delays, we may be required to pay certain customers substantial liquidated damages and other penalties. Our fixed-price and cost-reimbursement contracts may commit us to unfavorable terms. As a U.S. Government contractor, we are subject to a number of procurement rules and regulations. Our business could be adversely affected by a negative audit by the U.S. Government. Our contracts that are funded by the U.S. Government or foreign governments are subject to a competitive bidding process that may affect our ability to win contract awards or renewals in the future. Our international business is subject to geo-political and economic factors, regulatory requirements and other risks. Legislative actions resulting in higher compliance costs are likely to adversely affect our future consolidated results of operations, financial position and cash flows. Changes in healthcare policy could increase our costs and impact sales of and reimbursement for our tests. The Company is subject to environmental laws and potential exposure to environmental liabilities. Our quarterly operating results may vary significantly from quarter to quarter.

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