820097--6/29/2009--MICRONETICS_

related topics

{condition, economic, financial}

{customer, product, revenue}

{acquisition, growth, future}

{stock, price, share}

{property, intellectual, protect}

{product, market, service}

{stock, price, operating}

{capital, credit, financial}

{regulation, change, law}

{personnel, key, retain}

{control, financial, internal}

{system, service, information}

{regulation, government, change}

{cost, regulation, environmental}

Recent Changes in Economic Conditions May Adversely Affect Our Business. We may be materially and adversely affected by reductions in spending by certain of our customers. Our operating results have historically been subject to yearly and quarterly fluctuations and are expected to continue to fluctuate. There are a number of trends and factors which affect our markets, including economic conditions in the United States, Europe and globally, and are beyond our control. These trends and factors may result in reduced demand and pricing pressure on our products. Economic conditions affecting the industry, which affect market conditions in the military and communication infrastructure industry in the United States, Europe and globally, affect our business. We have made, and may continue to make, strategic acquisitions in order to enhance our business. If we are not successful in operating or integrating these acquisitions, our business, results of operations and financial condition may be materially and adversely affected. If we cannot effectively manage our growth, our business may suffer. Our reliance on a limited number of customers for a large portion of our revenues could materially and adversely affect our results of operations and financial condition. We depend on single manufacturing lines for our products, and any significant disruption in production could impair our ability to deliver our products. We depend on sole or limited source suppliers, and any disruption in supply could impair our ability to deliver our products on time or at expected cost. Our gross margins may be negatively affected, which in turn would negatively affect our operating results. We may not be able to attract or retain the specialized technical and managerial personnel necessary to achieve our business objectives. Future cash flow fluctuations may affect our ability to fund our working capital requirements or achieve our business objectives in a timely manner. Our business may be materially and adversely affected by increased levels of debt. We operate in highly dynamic and volatile industries characterized by changing technologies, evolving industry standards, frequent new product introductions and relatively short product life cycles. We face significant competition and may not be able to increase or maintain our market share and may suffer from competitive pricing practices. Our business may suffer if we cannot protect our proprietary technology. Claims by others that we infringe their intellectual property rights could harm our business and financial condition. The market price of our common stock may be volatile. Our common stock is thinly traded; therefore, our stock price may fluctuate more than the stock market as a whole. Declines in the market price of our common stock may negatively impact our ability to make future strategic acquisitions, raise capital, issue debt or retain employees. The testing of electronic communications equipment and the accurate transmission of information entail a risk of product liability claims by customers and others. Our products with military applications are subject to export regulations, which may be costly. We are subject to recently enacted environmental regulation, compliance with which may be costly. Changes in the securities laws and regulations have increased, and are likely to continue to increase, our costs, and may also adversely affect our ability to attract and retain qualified directors. If we or our independent registered public accounting firm are unable to affirm the effectiveness of our internal control over financial reporting in future years, the market value of our common stock could be adversely affected. Our Financing Requirements May Increase and We Could Have Limited Access to Capital Markets.

Full 10-K form ▸

820097--6/29/2009--MICRONETICS__INC