835910--3/16/2006--AMERICAN_POWER_CONVERSION_CORPORATION

related topics
{property, intellectual, protect}
{stock, price, operating}
{product, market, service}
{operation, international, foreign}
{customer, product, revenue}
{system, service, information}
{cost, operation, labor}
{acquisition, growth, future}
{control, financial, internal}
{personnel, key, retain}
{regulation, change, law}
{financial, litigation, operation}
{product, liability, claim}
FACTORS THAT MAY AFFECT FUTURE RESULTS Our annual and quarterly results are likely to be volatile. If we are unable to make significant and meaningful progress on the ongoing re-architecture of our supply chain, our revenue and profitability may be adversely affected. Gross margin variability could adversely affect our financial performance. We currently compete with several firms providing power protection and related products and services and expect competition to increase in the future, which could affect our revenue and profitability. Technological innovation, or failure to alter our products to meet the demands of technological innovation, could seriously harm our business. Defects in our products could seriously harm our business. Loss of any of our key personnel could seriously harm our business. Because we depend on foreign operations and revenues, we are exposed to currency fluctuations, import barriers and other risks related to conducting foreign operations. Because our business relies upon a variety of computer systems to operate effectively, the failure or disruption of, or latent defects in, these systems could have a material adverse effect on our business. Our reliance on sole source suppliers may result in product delays or price increases. We have a limited ability to protect our intellectual property rights; others could infringe on or misappropriate our propriety rights and information. Our products may infringe on the intellectual property rights of others. If we are unable to identify and successfully integrate acquisitions, our ability to expand and our financial results could suffer. Our stock price could be volatile, which could cause you to lose part or all of your investment. Our tax rate depends on earnings derived from certain foreign manufacturing operations. Failure to maintain effective internal control over financial reporting may materially adversely impact our business. We cannot provide any assurance that current laws, or any laws enacted in the future, will not have a material adverse effect on our business. We are, and may become, involved in litigation, which could materially harm our business.

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