57139--9/3/2010--LABARGE

related topics

{condition, economic, financial}

{regulation, government, change}

{product, market, service}

{stock, price, operating}

{tax, income, asset}

{customer, product, revenue}

{operation, international, foreign}

{cost, contract, operation}

{financial, litigation, operation}

{operation, natural, condition}

{control, financial, internal}

{personnel, key, retain}

{product, candidate, development}

{capital, credit, financial}

The Company depends heavily upon a concentrated base of customers, which are subject to unique risks, and a significant reduction in sales to any of the Company s major customers, or the loss of a major customer, could have a material impact on the Company s financial results. A significant portion of the Company s business depends heavily on U.S. Government defense contracts, which are subject to unique risks. The Company uses estimates when bidding on contracts and may not have the ability to control, and may not accurately estimate, its costs associated with performing under fixed-price contracts. In addition, when determining the cost of sales to be recognized under certain long-term contracts, the Company is required to estimate total costs to complete the contract. Many of the Company s contracts require innovative design capabilities, are technologically complex, require state-of-the-art manufacturing expertise, or are dependent upon factors beyond the Company s control. The Company faces intense industry competition and downward pricing pressures. The Company derives a portion of its revenues from non-U.S. sales and is subject to the risks of doing business in other countries. The Company s operating results may fluctuate significantly and fall below expectations, as well as make future results difficult to predict. Continued recession and global economic slowdown may materially adversely affect the Company s business. The Company and its customers may be unable to keep current with the industry s technological changes. The Company s operations are subject to numerous laws, regulations and restrictions, and failure to comply with these laws, regulations and restrictions could subject the Company to fines, penalties, suspension or debarment. The Company s business is subject to disruption caused by issues with its suppliers, natural disasters and other factors. Changes in future business conditions could cause business investments and/or recorded goodwill to become impaired, resulting in substantial losses and write-downs. The Company may not have the ability to renew its facilities leases on terms favorable to the Company and relocation of Company operations presents risks due to business interruption. The occurrence of litigation in which the Company could be named as a defendant is unpredictable. If the Company does not adequately manage and evolve the financial reporting and managerial systems, and processes, the ability to manage and grow the business may be constrained. The Company is dependent on the recruitment and retention of key personnel. Any disruption in the global financial markets and any economic downturn may adversely impact the availability and cost of credit and customer purchasing and payment patterns. The Company is subject to the risk of increased income taxes. The Company s stock price is subject to significant volatility.

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57139--9/3/2010--LABARGE_INC