355777--3/16/2010--LOJACK

related topics

{acquisition, growth, future}

{stock, price, share}

{customer, product, revenue}

{financial, litigation, operation}

{condition, economic, financial}

{property, intellectual, protect}

{provision, law, control}

{control, financial, internal}

{product, market, service}

{operation, international, foreign}

{personnel, key, retain}

{regulation, government, change}

{product, candidate, development}

{system, service, information}

RISKS RELATING TO OUR BUSINESS The automotive industry is sensitive to changing economic conditions and various other factors. Our business and results of operations are substantially dependent on new vehicle sales levels in the United States and the sales of LoJack products in our particular geographic markets. Economic conditions could negatively impact our automotive dealers and the sale of our products. Any negative impact on the sales, licensing and marketing efforts of our principal products would adversely affect our business and results of operations. Unfavorable results of pending legal proceedings could materially adversely affect us. We face significant competition from original equipment manufacturers, or OEMs, and makers of location based services and automobile products to be sold by automobile dealers, which could make our products less effective or obsolete, and harm our business. Our growth depends in part on the development, production and market acceptance of new products and sales channels which we cannot assure will happen successfully. If we are unable to maintain our brand and product quality, it may damage our reputation which could have an adverse effect on our business, financial condition and results of operations. We depend on a limited number of third parties to manufacture and supply quality infrastructure components for our principal products. If our suppliers cannot provide the components or services we require and in such quality as we expect, our ability to market and sell our products could be harmed. We may need additional financing in the future, which could be difficult to obtain on acceptable terms or at all. Any such financing could also dilute shareholder value. If we are unable to hire or retain key employees, it could have a negative impact on our business. Failure to procure and maintain contracts with local law enforcement agencies would materially adversely affect the marketability of the LoJack System and would inhibit sales in the United States and Italy. We are subject to government regulations and approvals which may result in costs and delays that could impede our ability to competitively offer our services and products in the market. Economic, political and other risks associated with the operations in our International Segment could adversely affect our revenue and earnings. The success of the Boomerang System is heavily dependent on Boomerang s alliances with wireless carriers and insurance companies. If we fail to protect and enforce our intellectual property rights, our competitiveness could be impeded and our business and operating results could be harmed. If a court determines that our technology infringes on third parties intellectual property, we will likely face significant costs and we may lose our rights to the technology, which would harm our business. Our failure to successfully integrate businesses that we may acquire could disrupt our business and negatively impact our future financial condition and operating results. Our failure to successfully execute on our key investments could disrupt our business and negatively impact our future financial condition and operating results. RISKS RELATING TO OUR COMMON STOCK There are risks inherent in owning our common stock. Sizeable future sales of our common stock may depress the share price for our common stock or prevent or delay our ability to sell equity investments in our Company at competitive rates. Certain provisions of our governing documents and Massachusetts law might make a takeover of us more difficult, which could impede the ability of our shareholders to effectuate changes in our management and board of directors.

Full 10-K form ▸

355777--3/16/2010--LOJACK_CORP