836690--12/11/2008--INNOVATIVE_SOLUTIONS_&_SUPPORT

related topics

{product, market, service}

{customer, product, revenue}

{condition, economic, financial}

{personnel, key, retain}

{stock, price, operating}

{property, intellectual, protect}

{acquisition, growth, future}

{product, candidate, development}

{regulation, government, change}

{capital, credit, financial}

Risks Related to Our Business Our sales principally relate to flat panel display systems and air data products, and we cannot be certain that the market will continue to accept these or other products. A global recession and continued credit tightening could adversely affect us. The loss of a key customer or a significant deterioration in the financial condition of a key customer could have a material adverse effect on our results of operations. Growth of our customer base could be limited by delays or difficulties in completing development and introduction of our planned products or product enhancements. If we fail to enhance existing products or to develop and achieve market acceptance for flat panel displays and other new products that meet customer requirements, our business will be adversely affected. We rely on third party suppliers for components of our products, and any interruption in supply of these components could hinder our ability to deliver our products. Government contracts can be terminated by the government at any time and therefore may not result in sales. We depend on key personnel to manage our business effectively, and if we are unable to retain our key employees, our ability to compete could be harmed. Our revenue and operating results may vary significantly from quarter to quarter, which may cause our stock price to decline. Our competition includes other manufacturers of air data systems and flight information displays against whom we may not be able to compete successfully. We may not be able to identify or complete acquisitions or we may consummate an acquisition that adversely affects our operating results. Our success depends on our ability to protect our proprietary rights, and there is a risk of infringement. If we are unable to protect and enforce our intellectual property rights, we may be unable to compete effectively. Potential lenders may have suffered losses related to the weakening economy and may not be able to provide us with needed financing. Risks Related to Our Industry If we are unable to respond to rapid technological change, our products could become obsolete and our reputation could suffer. Because our products utilize sophisticated technology and are deployed in complex aircraft cockpit environments, problems with these products may arise that could seriously harm our reputation for quality assurance and our business. We have limited experience in marketing and distributing our products internationally.

Full 10-K form ▸

836690--12/11/2008--INNOVATIVE_SOLUTIONS_&_SUPPORT_INC