854852--3/31/2008--Emrise

related topics

{customer, product, revenue}

{stock, price, operating}

{stock, price, share}

{operation, international, foreign}

{control, financial, internal}

{acquisition, growth, future}

{product, market, service}

{cost, operation, labor}

{property, intellectual, protect}

{regulation, government, change}

{personnel, key, retain}

Risks Related to Our Business We incurred a net loss in 2007 and 2006 and may incur losses in the future. If we continue to incur losses, we will experience negative cash flow, which may hamper our operations, may prevent us from expanding our business and may cause our stock price to decline. Our lack of long-term purchase orders or commitments may adversely affect our business if demand is reduced. We have material weaknesses in our internal control over financial reporting structure which until remedied, may cause errors in our financial statements that could require a restatement or our filings may not be timely and investors may lose confidence in our reported financial information, which could lead to a decline in our stock price. The unpredictability of our quarterly operating results may cause the price of our common stock to fluctuate or decline. The sales cycles of some of our products are lengthy, exposing us to the risks of delays, foregone orders and fluctuations in operating results. Most of our competitors have greater resources than us. In order to compete successfully, we must keep pace with our competitors in anticipating and responding to the rapid changes involving the electronic devices and communications equipment industries. We rely heavily on our management, and the loss of their services could adversely affect our business. Our acquisition strategy may result in unanticipated accounting charges or otherwise adversely affect our results of operations, and result in difficulties in assimilating and integrating the operations, personnel, technologies, products and information systems of acquired companies or businesses, or be dilutive to existing shareholders. As our international business expands, we are increasingly exposed to various legal, business, political and economic risks associated with our international operations. If we are unable to fulfill backlog orders due to circumstances involving us or one or more of our suppliers or customers, our anticipated results of operations will suffer. If our products fail to comply with evolving government and industry standards and regulations, we may have difficulty selling our products. Our business could suffer if we are unable to obtain components of our products from outside suppliers. Financial statements of our foreign subsidiaries are prepared using the relevant foreign currency that must be converted into U.S. dollars for inclusion in our consolidated financial statements. As a result, exchange rate fluctuations may adversely affect our reported results of operations. Because we believe that proprietary rights are material to our success, misappropriation of these rights could adversely affect our financial condition. Risks Related to Our Common Stock Our common stock may be delisted from NYSE Arca, which could decrease the market price of our common stock and make it more difficult to dispose of or obtain quotations for our common stock. Our common stock price has been volatile, which could result in substantial losses for investors purchasing shares of our common stock and in litigation against us. Future sales of shares of our common stock by our stockholders could cause our stock price to decline.

Full 10-K form ▸

854852--3/31/2008--Emrise_CORP