836690--12/14/2007--INNOVATIVE_SOLUTIONS_&_SUPPORT_INC

related topics
{product, market, service}
{customer, product, revenue}
{property, intellectual, protect}
{personnel, key, retain}
{acquisition, growth, future}
{stock, price, operating}
{product, candidate, development}
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. The growth of our customer base could be limited by delays or difficulties in completing the 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 effected. We rely on third party suppliers for components of our products, and any interruption in the supply of these components could hinder our ability to deliver our products. 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 revenues and operating results may vary significantly from quarter to quarter due to a number of factors, including: 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. 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.

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