716314--6/5/2007--GRAHAM

related topics

{operation, international, foreign}

{product, market, service}

{property, intellectual, protect}

{provision, law, control}

{customer, product, revenue}

{personnel, key, retain}

{cost, regulation, environmental}

{financial, litigation, operation}

{competitive, industry, competition}

{debt, indebtedness, cash}

{condition, economic, financial}

{stock, price, share}

Risks related to our business The industries in which we operate are cyclical, and downturns in such industries may adversely affect our operating results. Our international sales operations are subject to uncertainties that could harm our business. If we fail to introduce enhancements to our existing products or to keep abreast of technological changes in our markets, our business and results of operations could be adversely affected. The loss of any of our senior executive officers or our inability to hire additional qualified management personnel could harm our business. Our business is highly competitive. If we are unable to successfully implement our business strategy, we risk losing market share to current and future competitors. If we are unable to make necessary capital investments or respond to pricing pressures, our business may be harmed. If third parties infringe our intellectual property or if we were to infringe the intellectual property of third parties, we may expend significant resources enforcing or defending our rights or suffer competitive injury. A decrease in supply or increase in cost of the materials used in our products could harm our profitability. If we are unable to effectively outsource a portion of our production during times when we are experiencing strong demand, our results of operations might be adversely affected. In addition, outsourcing may negatively affect our profit margins. We face potential liability from asbestos exposure and similar claims. Risks related to operating a subsidiary in China The operations of our Chinese subsidiary may be adversely affected by China s evolving economic, political and social conditions. It may be difficult for our Chinese subsidiary to make dividend or other payments to us, which could adversely affect our results of operations. Intellectual property rights are difficult to enforce in China. Uncertainties with respect to the Chinese legal system may adversely affect the operations of our Chinese subsidiary. Risks related to the ownership of our common stock Provisions contained in our certificate of incorporation, bylaws and our stockholder rights plan could impair or delay stockholders ability to change our management and could discourage takeover transactions that our stockholders might consider to be in their best interests.

Full 10-K form ▸

716314--6/5/2007--GRAHAM_CORP