67279--3/30/2010--MOCON

related topics

{product, market, service}

{operation, international, foreign}

{property, intellectual, protect}

{condition, economic, financial}

{system, service, information}

{personnel, key, retain}

{stock, price, operating}

{tax, income, asset}

{cost, regulation, environmental}

{customer, product, revenue}

Worldwide economic conditions have depressed capital spending during the last year and adversely affected our business, operating results and financial condition and a continuation of economic conditions resulting in lower capital spending may adversely affect us and decrease our stock price. Some of the markets in which we operate have experienced minimal growth in recent years, and our ability to increase our sales will depend in part on our ability to develop new products, develop new applications for our existing products or acquire complementary businesses and product lines. If we fail to attract and retain qualified managerial and technical personnel, we may fail to remain competitive. If we acquire businesses in the future, we could experience a decrease in our profit margins, a decrease in our net income, and other adverse consequences. We face risks of technological changes that may render our products obsolete. A significant portion of our sales are generated from foreign countries and selling in foreign countries entails a number of risks which could result in a decrease in our sales or an increase in our operating expenses. Fluctuations in foreign currency exchange rates could result in declines in our reported net sales and net earnings. Some of our competitors have greater resources than we do, which may provide our competitors with an advantage in the development and marketing of new products. Our reliance upon patents, domestic trademark laws, trade secrets and contractual provisions to protect our proprietary rights may not be sufficient to protect our intellectual property from others who may sell similar products. We rely on our management information systems for inventory management, distribution and other functions. If our information systems fail to adequately perform these functions or if we experience an interruption in their operation, our business and results of operations could be adversely affected. The market price of our common stock has fluctuated significantly in the past and will likely continue to do so in the future and any broad market fluctuations may materially adversely affect the market price of our common stock. Complying with securities laws and regulations is costly for us. If we experience any increase in the cost of raw materials or supplies, we may experience a decrease in profit margins. We have spent significant resources to develop new products in the food and beverage safety and packaging industries and we have thus far only realized minimal revenues from these products.

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67279--3/30/2010--MOCON_INC