828064--3/28/2007--ROCKFORD_CORP

related topics
{operation, international, foreign}
{product, market, service}
{customer, product, revenue}
{stock, price, operating}
{personnel, key, retain}
{competitive, industry, competition}
{control, financial, internal}
{property, intellectual, protect}
{condition, economic, financial}
Rockford may lose sales and market share if it is unable to compete successfully against current and future competition, including products offered by aftermarket suppliers and by auto manufacturers. If Rockford does not continue to develop, introduce and achieve market acceptance of new and enhanced products, sales may decrease. Rockford may lose market share and its brand image may erode as Rockford changes distribution channels for its mobile audio products. Seasonality of mobile audio sales causes Rockford s quarterly sales to fluctuate and may affect the trading price of its stock. Rockford s financial results may fluctuate significantly, making financial forecasting difficult and making Rockford s stock price volatile. A decline in discretionary spending likely would reduce Rockford s sales. If Rockford fails to execute its strategy successfully, its financial condition could be seriously harmed. Rockford relies upon debt financing for a substantial part of its working capital; defaults on its debt or the unavailability of additional financing could make it impossible to carry out Rockford s business as currently structured. If Rockford fails to manage its inventory effectively, Rockford could incur additional costs or lose sales. Rockford s product supplies and international operations may be harmed by factors including political instability, currency exchange rates and changes in regulations that govern international transactions. Loss of an international distributor may disrupt Rockford s sales. Rockford may incur additional costs or reduced sales as it transitions from a direct distribution system to local distributors in its international markets Currency fluctuations may reduce the profitability of Rockford s foreign sales. If Rockford s supplies of finished goods or components are interrupted, it may be unable to deliver its products to its customers. Rockford may be unable to retain and attract key employees, which could impair Rockford s business. If Rockford is unable to enforce or defend its ownership and use of intellectual property, Rockford s business may decline. Rockford could suffer from internal control deficiencies that may result in a reduction in its stock price.

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