351298--11/30/2007--HEI_INC

related topics
{customer, product, revenue}
{operation, international, foreign}
{provision, law, control}
{cost, regulation, environmental}
{cost, operation, labor}
{product, market, service}
Our costs may increase significantly if we are unable to forecast customer orders and production schedules. We may have a significant accounts receivable write-off as well as an increase in inventory reserve due to the inability of our customers to pay their accounts. We may fail to have enough liquidity to operate our business because we may not adequately adjust our expenses to actual revenue in any given period, which may dramatically and negatively impact our cash flow. If we fail to properly anticipate the market for new products and service we may lose net sales. If we fail to comply with environmental laws and regulations we may be fined and prohibited from manufacturing products. We have customers located in foreign countries and our unfamiliarity of the laws and business practices of such foreign countries could cause us to incur increased costs. Our Amended and Restated Articles of Incorporation contain provisions that could discourage or prevent a potential takeover, even if such transaction would be beneficial to our shareholders.

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