780127--1/4/2008--SYNOVIS_LIFE_TECHNOLOGIES__INC

related topics
{customer, product, revenue}
{product, candidate, development}
{product, liability, claim}
{regulation, government, change}
{operation, natural, condition}
{property, intellectual, protect}
{acquisition, growth, future}
{tax, income, asset}
{condition, economic, financial}
We transitioned to a direct sales force in the U.S. markets for our surgical products. We are dependent on certain large customers for a significant percentage of the sales in our interventional business. The worldwide CRM market has declined and if it does not fully recover, our results of operation and financial condition may be adversely impacted. We may not be able to adequately enforce or protect our intellectual property rights or to protect ourselves against the infringement claims of others. Our failure to obtain regulatory clearance/approval and maintain regulatory compliance for any of our products would impact our ability to generate revenue from those products. Because our biomaterial products are manufactured from bovine pericardium, perceptions about Bovine Spongiform Encephalopathy may impact our sales. We may face the risk of product liability claims and product recalls that could result in costly and time consuming litigation and significant liability. Due to the unpredictability of the health care industry, our customers may not be able to receive third party reimbursement for the surgical procedures utilizing our products. A substantial portion of our short-term investment portfolio is invested in highly-rated (AAA or AA) auction rate securities. Failures in these auctions may affect our liquidity, while rating downgrades of the security issuer and/or the third-parties insuring such investments may require us to adjust the carrying value of these investments through an impairment charge. We depend on highly specialized equipment to manufacture our products and loss of or damage to our manufacturing facilities could result in significant losses. Our strategy to acquire complementary businesses and technologies involves risk and may result in disruptions to our business by, among other things, distracting management time and diverting financial resources.

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