355948--7/22/2010--RICHARDSON_ELECTRONICS_LTD/DE

related topics
{operation, international, foreign}
{customer, product, revenue}
{competitive, industry, competition}
{acquisition, growth, future}
{condition, economic, financial}
{system, service, information}
{product, liability, claim}
{control, financial, internal}
{stock, price, operating}
{tax, income, asset}
{capital, credit, financial}
{financial, litigation, operation}
Current worldwide economic conditions may adversely affect our business, operating results, and financial condition. We must continue to reduce our costs in order to compete effectively. We maintain a significant investment in inventory. We have also incurred significant charges for inventory obsolescence, and may incur similar charges in the future. We face competitive pressure in the markets we serve and, if we do not compete effectively, we could significantly harm our operating results. Failure to maintain our relationships with key suppliers could adversely affect our sales. Economic, political, and other risks associated with international sales and operations could adversely affect our results of operations. We may not have adequate or cost-effective liquidity or capital resources. Our products may be found to be defective and, as a result, warranty and/or product liability claims may be asserted against us, which may have a material adverse effect on us. A single stockholder has voting control over us. Foreign currency exchange rates may adversely affect our results. Substantial defaults by our customers on our accounts receivable or the loss of significant customers could have a significant negative impact on our business. Future acquisitions are subject to integration and other risks. If we fail to maintain an effective system of internal controls or discover material weaknesses in our internal controls over financial reporting, we may not be able to detect fraud or report our financial results accurately or timely, which could have a material adverse effect on our business. We are a defendant in a patent infringement lawsuit which could have a material adverse effect on our business. Our business is dependent upon the availability of our information systems. The failure of our information systems for any extended period of time could adversely affect our business.

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