749254--5/23/2007--TRM

related topics

{system, service, information}

{customer, product, revenue}

{control, financial, internal}

{interest, director, officer}

{product, market, service}

{stock, price, share}

{provision, law, control}

{debt, indebtedness, cash}

{investment, property, distribution}

{competitive, industry, competition}

{cost, operation, labor}

{loss, insurance, financial}

We have experienced significant attrition in the number of ATMs in our networks. This attrition has reduced and, if it continues in the future will further reduce, our sales and our ability to become profitable. Changes in technology could reduce use of ATMs and photocopiers and, as a result, reduce our sales. Both the ATM and photocopier markets are highly competitive, which could limit our growth or reduce our sales. Our failure to achieve and maintain adequate internal control in accordance with Section 404 of the Sarbanes-Oxley Act could result in a loss of investor confidence regarding our financial reports and have an adverse effect on our business, financial condition, results of operations and stock price. The terms of our credit agreement may restrict our current and future operating and financial flexibility. If we are unable to remediate the material weaknesses in our internal control over financial reporting, the accuracy and timing of our financial reporting may be impaired. We have received a going concern opinion from our independent registered public accounting firm, which may negatively impact our business. Risks Relating to Our ATM Business We depend on eFunds Corporation to provide many services on which we rely. If merchant-owned ATM customers terminate their relationships with us prior to the termination of their contract or do not renew their contracts upon their expiration, it could reduce our ATM sales. We rely on third parties to service our ATMs and their failure to do so may harm our operations, damage our reputation and decrease our transaction volume. Increases in interest rates will increase our expenses. Our ATM business operates in a changing and unpredictable regulatory environment. We will incur substantial expense in upgrading our ATMs to meet new standards, and, if we cannot meet compliance deadlines, we could be required to remove non-compliant ATMs from service. The passing of anti-money laundering legislation could cause us to lose some merchant accounts, thus reducing our revenues. If we, our transaction processors, our EFTNs or our other service providers experience system failures, the ATM products and services we provide could be delayed or interrupted, which would harm our business. We rely on EFTNs and transaction processors; if we cannot renew our agreements with them, if they are unable to perform their services effectively or if they decrease the level of the transaction fees we receive, it could harm our business. We obtain our ATM vault cash under an arrangement that could cause us to lose our access to the vault cash and to fees that we have earned due to circumstances beyond our control. We experienced substantial theft losses in our ATM operations in the past. If we were to experience a recurrence of these losses, our results of operations would be harmed. Risks Relating to Our Common Stock We do not plan to pay dividends on our common stock. Our charter documents and Oregon law may inhibit a takeover that shareholders may consider favorable. We have not selected a new independent registered public accounting firm for 2007 and if we do not engage a new independent registered public accounting firm promptly, we will not be able to file periodic reports as required by the Securities Exchange Act of 1934, as amended (the Exchange Act ).

Full 10-K form ▸

749254--5/23/2007--TRM_CORP