61478--11/23/2010--ADC_TELECOMMUNICATIONS

related topics

{customer, product, revenue}

{product, market, service}

{acquisition, growth, future}

{stock, price, operating}

{cost, operation, labor}

{operation, international, foreign}

{control, financial, internal}

{competitive, industry, competition}

{condition, economic, financial}

{provision, law, control}

{property, intellectual, protect}

{personnel, key, retain}

{financial, litigation, operation}

{regulation, government, change}

Our gross margins may vary over time, and our level of gross margins may not be sustainable. Our operating results are difficult to predict and fluctuate significantly from quarter to quarter. Our profitability could be impacted negatively if one or more of our key customers substantially reduces orders for our products and/or transitions their purchases towards lower gross margin products. Our market is subject to rapid technological change and, to compete effectively, we must continually introduce new products that achieve market acceptance. Our cost reduction initiatives may not result in anticipated savings or more efficient operations and may be disruptive to our operations. We are becoming increasingly dependent on specific network expansion projects undertaken by our customers, which are subject to intense competition and result in sales volatility. Further consolidation among our customers may result in the loss of some customers and may reduce revenue during the pendency of business combinations and related integration activities. Our Professional Services business is exposed to risks associated with a highly concentrated customer base. Possible consolidation among our competitors could result in a loss of sales and profitability and negatively impact our competitive position. We may not successfully close strategic acquisitions and, if these acquisitions are completed, we may have difficulty integrating the acquired businesses with our existing operations. If we seek to secure other financing we may not be able to obtain it on acceptable terms and, given the current market conditions, obtaining financing on any terms may not be possible. We may complete transactions, undertake restructuring initiatives or face other circumstances in the future that will result in restructuring or impairment charges. The regulatory environment in which we and our customers operate is changing and those changes may impact our business. Conditions in global markets could adversely affect our operations. We are subject to special risks relating to doing business in China and other developing nations. Our intellectual property rights may not be adequate to protect our business. We are dependent upon our senior management and other critical employees. Compliance with internal control requirements is expensive and poses certain risks. Product defects or the failure of our products to meet specifications could cause us to lose customers and revenue or to incur unexpected expenses. Managing our inventory is complex and may include write-downs of excess or obsolete inventory. We may encounter difficulties obtaining raw materials and supplies needed to make our products, and the prices of these materials and supplies are subject to fluctuation. If our manufacturing operations suffer production or shipping delays or if we do not have sufficient manufacturing capabilities, we may experience difficulty in meeting customer demands. If contract manufacturers that we rely on to produce a significant portion of our products or key components of products encounter production quality, financial or other difficulties, we may experience difficulty in meeting customer demands. Our ability to operate our business and report financial results is dependent on maintaining effective information management systems. We are subject to risks associated with changes in commodity prices, interest rates, security prices, and foreign currency exchange rates. We may encounter litigation that has a material impact on our business. Risks Related to Our Common Stock Our stock price has been volatile historically and may continue to be volatile. Anti-takeover provisions in our charter documents, our shareholder rights agreement and Minnesota law could prevent or delay a change in control of our company.

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61478--11/23/2010--ADC_TELECOMMUNICATIONS_INC