34067--3/8/2007--DYNAMIC_MATERIALS_CORP

related topics
{cost, regulation, environmental}
{competitive, industry, competition}
{acquisition, growth, future}
{customer, product, revenue}
{product, market, service}
{cost, operation, labor}
{cost, contract, operation}
{personnel, key, retain}
{stock, price, operating}
{condition, economic, financial}
Risk Factors Related to Our Industry Despite substantial growth in recent years in our existing markets, growth in such markets may not continue at the same rate indefinitely. There is a limited availability of sites suitable for cladding operations. Certain raw materials we use are subject to supply shortages due to general economic conditions. Certain raw materials we use are subject to price increases due to general economic conditions. We are subject to extensive government regulation and failure to comply could subject us to future liabilities and could adversely affect our ability to conduct or to expand our business. Liabilities under environmental and safety laws could result in restrictions or prohibitions on our facilities, substantial civil or criminal liabilities, as well as the assessment of strict liability and/or joint and several liability. The use of explosives subjects us to additional regulation, and any accidents or injuries could subject us to significant liabilities. Our use of explosives is an inherently dangerous activity that could lead to temporary or permanent closure of our shooting sites. Risk Factors Related to Dynamic Materials Corporation Our operating results fluctuate from quarter to quarter. Customers have the right to change orders until products are completed. There is no assurance that we will continue to compete successfully against other clad and welding companies. We are dependent on a relatively small number of customers for a significant portion of our net sales. Failure to attract and retain key personnel could adversely affect our current operations. Work stoppages and other labor relations matters may make it substantially more difficult or expensive for us to produce our products, which could result in decreased sales or increased costs, either of which would negatively impact our financial condition and results of operations. The unsuccessful integration of a business we acquire could have a material adverse effect on operating results.

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