863436--3/13/2006--BENCHMARK_ELECTRONICS

related topics

{customer, product, revenue}

{regulation, change, law}

{operation, international, foreign}

{stock, price, operating}

{operation, natural, condition}

{competitive, industry, competition}

{cost, regulation, environmental}

{condition, economic, financial}

{personnel, key, retain}

{tax, income, asset}

{product, market, service}

{system, service, information}

{cost, contract, operation}

{financial, litigation, operation}

{loss, insurance, financial}

{acquisition, growth, future}

{provision, law, control}

{debt, indebtedness, cash}

The loss of a major customer would adversely affect us. We are dependent on the success of our customers. We operate in a highly competitive industry. We may experience fluctuations in quarterly results. Most of our customers do not commit to long-term production schedules, which makes it difficult for us to schedule production and achieve maximum efficiency of our manufacturing capacity. Our customers may cancel their orders, change production quantities or delay production. Start-up costs and inefficiencies related to new or transferred programs can adversely affect our operating results and such costs may not be recoverable if such new programs or transferred programs are cancelled. Complications with the implementation of our new information systems could disrupt our operations and cause unanticipated increases in our costs. We are exposed to general economic conditions, which could have a material adverse impact on our business, operating results and financial condition. We may encounter significant delays or defaults in payments owed to us by customers for products we have manufactured or components that are unique to particular customers. We may be affected by consolidation in the electronics industry. We are subject to the risk of increased taxes. We are exposed to intangible asset risk. There are inherent uncertainties involved in estimates, judgments and assumptions used in the preparation of financial statements in accordance with US GAAP. Any changes in estimates, judgments and assumptions could have a material adverse effect on our business, financial position and results of operations. Our international operations may be subject to certain risks. We are involved in legal proceedings. An unfavorable decision in any of these proceedings could have a material adverse effect on us. Our success will continue to depend to a significant extent on our executives. We must successfully integrate the operations of acquired companies to maintain profitability. We must maintain our technological and manufacturing process expertise. Environmental laws may expose us to financial liability and restrictions on operations. Shortages or price increases of components specified by our customers would delay shipments and adversely affect our profitability. Our stock price is volatile. Provisions in our shareholder rights plan, our charter documents and state law may make it harder for others to obtain control of our company even though some shareholders might consider such a development to be favorable. Recently enacted changes to financial accounting standards will affect our reported results of operations and could result in a decrease in the value of your shares. We could incur a significant amount of debt in the future. We may be exposed to interest rate fluctuations. Changes in the securities laws and regulations are likely to increase our costs. Our business may be impacted by geopolitical events. Our business may be impacted by hurricanes, epidemics and other natural disasters.

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863436--3/13/2006--BENCHMARK_ELECTRONICS_INC