741696--1/12/2010--APPLIED_SIGNAL_TECHNOLOGY

related topics

{customer, product, revenue}

{property, intellectual, protect}

{acquisition, growth, future}

{condition, economic, financial}

{personnel, key, retain}

{product, market, service}

{financial, litigation, operation}

{regulation, government, change}

{stock, price, operating}

{regulation, change, law}

{tax, income, asset}

{cost, operation, labor}

Risks Related to our Business and Operations Any reduction in Government spending on ISR could materially adversely impact our revenues, results of operations, and financial condition We depend on revenues from a few significant contracts, and any loss, cancellation, reduction, or delay in these contracts could harm our business We depend on revenues from a few significant customers; the loss of any significant customer could have an adverse effect on our business Any decrease in expected product sales during a period could adversely impact our revenues, results of operations, and financial condition If we are unable to recruit, train, and retain key personnel with required security clearances, our ability to develop, introduce, and sell our products may be adversely impacted Stop-work orders could negatively impact our operating results and financial condition Unexpected contract terminations could negatively impact our operating results and financial condition If we are unable to comply with complex Government regulations governing security and contracting practices, we could be disqualified as a supplier to the United States Government The Government may investigate and make inquiries of our business practices and conduct audits of contract performance and cost accounting Our business depends upon our relationships with, and the performance of, our prime contractors Continued competition in ISR may lead to a reduction in our revenues and market share Our market is subject to rapid technological change, and to compete effectively, we must continually introduce new signal processing solutions that achieve market acceptance We derive revenue from royalties, the timing of which can be difficult to predict and sustain Our future revenues are inherently unpredictable, our operating results are likely to fluctuate from period to period, and if we fail to meet the expectations of securities analysts or investors, our stock price could decline significantly Delays in the receipt of contracts could negatively impact our business We have been named as a party to securities class action and derivative action lawsuits, which may require significant management time and attention and legal expense, and may result in an unfavorable outcome, which could have a material, adverse effect on our business, financial condition, results of operations, and cash flows. Our results of operations could be negatively impacted if we are required to write off inventory deemed not saleable or usable We may lose sales if our suppliers fail to meet our needs Our failure to protect our intellectual property may significantly harm our business The United States Government has rights to our technology that limits our intellectual property rights Claims that we infringe third-party intellectual property rights could result in significant expenses or restrictions on our ability to sell our products We intend to continue to pursue selective acquisitions of businesses or complementary technologies, which could involve costs and other risks, and may not provide the expected benefits We may be unable to successfully integrate the businesses of acquired companies We expect to incur significant costs associated with the acquisition We may incur significant amounts of goodwill associated with acquisitions

Full 10-K form ▸

741696--1/12/2010--APPLIED_SIGNAL_TECHNOLOGY_INC