831641--11/16/2010--TETRA_TECH

related topics

{regulation, government, change}

{cost, contract, operation}

{capital, credit, financial}

{condition, economic, financial}

{loss, insurance, financial}

{cost, operation, labor}

{tax, income, asset}

{acquisition, growth, future}

{stock, price, operating}

{system, service, information}

{product, liability, claim}

{operation, natural, condition}

{personnel, key, retain}

{interest, director, officer}

{debt, indebtedness, cash}

{competitive, industry, competition}

{property, intellectual, protect}

{investment, property, distribution}

{cost, regulation, environmental}

Our operating results may be adversely impacted by worldwide political and economic uncertainties and specific conditions in the markets we address. Our annual revenue, expenses and operating results may fluctuate significantly, which may adversely affect our stock price. Demand from our state and local government and commercial clients is cyclical and vulnerable to economic downturns. If the economy remains weak or client spending declines further, then our revenue, profits and our financial condition may deteriorate. Our revenue from commercial clients is significant, and the credit risks associated with certain of these clients could adversely affect our operating results. We derive a majority of our revenue from government agencies, and any disruption in government funding or in our relationship with those agencies could adversely affect our business. A significant shift in U.S. defense spending could harm our operations and significantly reduce our profits and revenue. A delay in the completion of the budget process of the U.S. government could delay procurement of our services and have an adverse effect on our future revenue. As a government contractor, we must comply with various procurement laws and regulations and are subject to regular government audits; a violation of any of these laws and regulations or the failure to pass a government audit could result in sanctions, contract termination, forfeiture of profit, harm to our reputation or loss of our status as an eligible government contractor and could reduce our profits and revenue. Our inability to win or renew government contracts during regulated procurement processes could harm our operations and significantly reduce or eliminate our profits. Each year, client funding for some of our government contracts may rely on government appropriations or public-supported financing. If adequate public funding is delayed or is not available, then our profits and revenue could decline. Our government contracts may give government agencies the right to modify, delay, curtail, renegotiate or terminate existing contracts at their convenience at any time prior to their completion, and if we do not replace these contracts, we may suffer a decline in our profits and revenue. If we fail to complete a project in a timely manner, miss a required performance standard or otherwise fail to adequately perform on a project, then we may incur a loss on that project, which may reduce or eliminate our overall profitability. The loss of key personnel or our inability to attract and retain qualified personnel could significantly disrupt our business. Our actual business and financial results could differ from the estimates and assumptions that we use to prepare our financial statements, which may significantly reduce or eliminate our profits. Our profitability could suffer if we are not able to maintain adequate utilization of our workforce. Our use of the percentage-of-completion method of revenue recognition could result in a reduction or reversal of previously recorded revenue and profits. Our business and operating results could be adversely affected by our inability to accurately estimate the overall risks, revenue or costs on a contract. Our failure to win new contracts and renew existing contracts with private and public sector clients could adversely affect our profitability. We have made and expect to continue to make acquisitions that could disrupt our operations and adversely impact our business and operating results. Our ability to successfully integrate acquisitions could impede us from realizing all of the benefits of the acquisitions, which could weaken our results of operations. If our goodwill or other intangible assets become impaired, then our profits may be significantly reduced. If we are not able to successfully manage our growth strategy, our business and results of operations may be adversely affected. Our backlog is subject to cancellation and unexpected adjustments, and is an uncertain indicator of future operating results. Our international operations are subject to a number of risks that could significantly reduce our revenue and profits, or subject us to criminal and civil enforcement actions. If our business partners fail to perform their contractual obligations on a project, we could be exposed to legal liability, loss of reputation and profit reduction or loss on the project. If our contractors and subcontractors fail to satisfy their obligations to us or other parties, or if we are unable to maintain these relationships, our revenue, profitability and growth prospects could be adversely affected. Changes in resource management or infrastructure industry laws, regulations and programs could directly or indirectly reduce the demand for our services, which could in turn negatively impact our revenue. Changes in capital markets could adversely affect our access to capital and negatively impact our business. Restrictive covenants in our credit agreement may restrict our ability to pursue certain business strategies. Our industry is highly competitive and we may be unable to compete effectively. The value of our common stock could be volatile. Legal proceedings, investigations and disputes could result in substantial monetary penalties and damages, especially if such penalties and damages exceed or are excluded from existing insurance coverage. Unavailability or cancellation of third-party insurance coverage would increase our overall risk exposure as well as disrupt the management of our business operations. Our inability to obtain adequate bonding could have a material adverse effect on our future revenue and business prospects. Employee, agent or partner misconduct or our overall failure to comply with laws or regulations could harm our reputation, reduce our revenue and profits, and subject us to criminal and civil enforcement actions. Our business activities may require our employees to travel to and work in countries where there are high security risks, which may result in employee death or injury, repatriation costs or other unforeseen costs. Our failure to implement and comply with our safety program could adversely affect our operating results or financial condition. We may be precluded from providing certain services due to conflict of interest issues. We may be subject to liabilities under environmental laws and regulations. Force majeure events, including natural disasters and terrorist actions could negatively impact the economies in which we operate or disrupt our operations, which may affect our financial condition, results of operations or cash flows. We have only a limited ability to protect our intellectual property rights, and our failure to protect our intellectual property rights could adversely affect our competitive position. We rely on third-party internal and outsourced software to run our critical accounting, project management and financial information systems. As a result, any sudden loss, disruption or unexpected costs to maintain these systems could significantly increase our operational expense and disrupt the management of our business operations.

Full 10-K form ▸

831641--11/16/2010--TETRA_TECH_INC