728249--3/20/2009--INTERPHASE

related topics

{customer, product, revenue}

{property, intellectual, protect}

{competitive, industry, competition}

{acquisition, growth, future}

The marketing and sale of our products involve lengthy sales cycles. This and other factors make business forecasting extremely difficult and can lead to significant fluctuations in period-to-period results. We operate in an intensely competitive marketplace and many of our competitors have greater resources than we do. If our third party suppliers fail to produce quality products or parts in a timely manner, we may not be able to meet our customers demands. We may be unable to effectively protect our proprietary technology, which would negatively affect our ability to compete. Also, if our products are alleged to violate the proprietary rights of others, our ability to compete would be negatively impacted. We may require additional working capital to fund operations and expand our business.

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728249--3/20/2009--INTERPHASE_CORP