70793--12/11/2006--NBTY

related topics

{product, liability, claim}

{customer, product, revenue}

{cost, regulation, environmental}

{property, intellectual, protect}

{operation, international, foreign}

{regulation, change, law}

{operation, natural, condition}

{product, market, service}

{personnel, key, retain}

{competitive, industry, competition}

{loss, insurance, financial}

{acquisition, growth, future}

Unfavorable publicity or consumer perception of our products and any similar products distributed by other companies could have a material adverse effect on our business. Complying with new and existing government regulation, both in the US and abroad, could increase our costs significantly and adversely affect our financial results. We may be exposed to legal proceedings instigated by regulators abroad which could increase our costs and adversely affect our reputation, revenues and operating income. We may incur material product liability claims, which could increase our costs and adversely affect our reputation, revenues and operating income. Insurance coverage, even where available, may not be sufficient to cover losses we may incur. The insurance industry has become more selective in offering some types of coverage and we may not be able to obtain insurance coverage in the future. If we experience product recalls, we may incur significant and unexpected costs, and our business reputation could be adversely affected. Our operations in international markets expose us to certain risks. We may not be successful in our future acquisition endeavors, if any, which may have an adverse effect on our business and results of operations. We are dependent on our executive officers and other key personnel, and we may not be able to pursue our current business strategy effectively if we lose them. Two of our customers account for a substantial portion of our revenue, and the loss of one or both of these customers would have a material adverse effect on our results of operations. We are dependent on certain third-party suppliers. We rely on our manufacturing operations to produce the vast majority of the nutritional supplements that we sell, and disruptions in our manufacturing system or losses of manufacturing certifications could affect our results of operations adversely. We operate in a highly competitive industry, and our failure to compete effectively could adversely affect our market share, financial condition and growth prospects. Our failure to appropriately respond to changing consumer preferences and demand for new products and services could harm our customer relationships and product sales significantly. We are subject to acts of God, war, sabotage and terrorism risk. We may be affected adversely by increased utility and fuel costs. Our profits may be affected negatively by currency exchange rate fluctuations. Our inability to protect our intellectual property rights could adversely affect our business. Intellectual property litigation and infringement claims against us could cause us to incur significant expenses or prevent us from manufacturing, selling or using our products, which could adversely affect our revenues and market share.

Full 10-K form ▸

70793--12/11/2006--NBTY_INC