52971--9/28/2007--JACO_ELECTRONICS

related topics

{customer, product, revenue}

{operation, international, foreign}

{condition, economic, financial}

{debt, indebtedness, cash}

{system, service, information}

{personnel, key, retain}

{cost, operation, labor}

{control, financial, internal}

{product, liability, claim}

{competitive, industry, competition}

{product, market, service}

Our industry is highly cyclical, and an industry downturn could have a material adverse effect on our business. Our revenues and profitability previously declined significantly from historical highs and, although revenues have shown growth recently, we may be unable to achieve profitability at levels experienced in the past. We are dependent on a limited number of suppliers. Loss of one or more of our key suppliers could have a material adverse effect on our business. Declines in the value of our inventory could materially adversely affect our business. Significant order cancellations, reductions or delays by our customers could materially adversely affect our business. The market for our products and services is very competitive and, if we cannot effectively compete, our business will be harmed. Substantial defaults by our customers on accounts receivable or the loss of significant customers could have a material adverse effect on our business. We may not have adequate liquidity or access to capital resources, and our substantial leverage and debt service obligations could materially adversely affect our ability to meet our cash needs. Interest rate changes may adversely affect our operating results Our business in non-U.S. locations, particularly Asia, represent a significant and growing portion of our sales, and our failure to expand in Asia may negatively impact our sales. We are dependent on foreign manufacturers and subject to trade regulations which expose us to political and economic risk. Our industry is subject to supply shortages. Any delay or inability to obtain components may have a material adverse effect on our business. The prices of our components are subject to volatility. A reversal of the trend for distribution to play an increasing role in the electronic components industry could materially adversely affect our business. Our operations would be materially adversely affected if third party carriers were unable to transport our products on a timely basis. Our products may be found to be defective and, as a result, warranty and/or product liability claims may be asserted against us which could have a material adverse effect on our business. If we are unable to recruit and retain key personnel necessary to operate our business, our ability to compete successfully will be adversely affected. We rely heavily on our internal information systems which, if not properly functioning, could materially adversely affect our business. 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 report our financial results accurately or timely, which could have a material adverse effect on our business.

Full 10-K form ▸

52971--9/28/2007--JACO_ELECTRONICS_INC