76954--9/12/2007--PEERLESS_MANUFACTURING

related topics

{cost, contract, operation}

{capital, credit, financial}

{product, market, service}

{product, liability, claim}

{operation, international, foreign}

{customer, product, revenue}

{cost, regulation, environmental}

{system, service, information}

{operation, natural, condition}

{personnel, key, retain}

{control, financial, internal}

{debt, indebtedness, cash}

{stock, price, operating}

Changes in current environmental legislation could have an adverse impact on the sale of our Environmental Systems and on our operating results. Competition could result in lower sales and decreased margins. If actual costs for our projects with fixed-price contracts exceed our original estimates, our profits will be reduced or we may suffer losses. Customers may cancel or delay projects. As a result, our backlog may not be indicative of our future revenue. Our ability to conduct business outside the United States may be adversely affected by factors outside of our control and our revenues and profits from international sales could be adversely impacted. Our financial performance may vary significantly from period to period, making it difficult to estimate future revenue. Changes in our product mix can have a significant impact on our profit margins. Our products are covered by warranties. Unanticipated warranty costs for defective products could adversely affect our financial condition and results of operations and reputation. Product liability claims not covered by insurance could adversely affect our financial condition and results of operations. A significant portion of our accounts receivable are related to large contracts from customers in the same industry, which increases our exposure to credit risk. Changes in billing terms can increase our exposure to working capital and credit risk. The terms and conditions of our credit facility impose restrictions on our operations, including restrictions on our ability to raise additional capital, if needed. Our business is subject to risks of terrorist acts, acts of war and natural disasters. The inability of our engineering and/or manufacturing operations to sufficiently scale up operations in response to unexpected spikes in orders with short cycle times directly impacts our ability to absorb our manufacturing overhead expense. Our ability to operate effectively could be impaired if we fail to attract and retain key personnel. Our customers may require us to perform portions of our projects in their local countries. The implementation of enterprise resource planning software will require substantial resources and could initially have a negative impact on our manufacturing capabilities. Our internal control over financial reporting required by Section 404 of the Sarbanes-Oxley Act of 2002 may be inadequate.

Full 10-K form ▸

76954--9/12/2007--PEERLESS_MANUFACTURING_CO