869986--6/29/2009--ADVANCED_PHOTONIX

related topics

{customer, product, revenue}

{property, intellectual, protect}

{stock, price, share}

{product, market, service}

{personnel, key, retain}

{cost, operation, labor}

{stock, price, operating}

{condition, economic, financial}

{competitive, industry, competition}

{regulation, government, change}

{cost, regulation, environmental}

{operation, international, foreign}

{tax, income, asset}

Risks Relating to Our Business The overall negative economic climate could adversely affect the liquidity and financial condition of our customers and our business. We are dependent upon several suppliers for a significant portion of raw materials used in the manufacturing of our products and any significant interruption could have a material adverse affect on our manufacturing. Customer acceptance of our products is dependent on our ability to meet changing requirements, and any decrease in acceptance could adversely affect our revenue. Our inability to find new customers and retain existing customers could have a material adverse affect on our business. If our customers do not qualify our products or if their customers do not qualify their products, our results of operations may suffer. Our sales to overseas markets expose us to additional, unpredictable risks which could have a material adverse affect on our business. Customer orders and forecasts are subject to cancellation or modification at any time which could result in higher manufacturing costs. The markets for many of our products are characterized by changing technology which could cause obsolescence of our products. We depend on key in-house manufacturing capabilities and a loss of these capabilities could have an adverse affect on our existing operations and new business growth. Changes in the spending priorities of the federal government can materially adversely affect our business. Our industry is highly competitive and fragmented, which can result in future competitors against which we cannot compete. Decreases in average selling prices of our products may reduce operating profit and net income, particularly if we are not able to reduce our expenses commensurately. Shifts in our product mix may result in declines in operating income and net income. Environmental regulations could increase operating costs and additional capital expenditures and delay or interrupt operations. If we are unable to protect our intellectual property rights adequately, the value of our products could be diminished. Our failure to protect our intellectual property may significantly harm our business. Pursuing infringers of our intellectual property rights can be costly. Third parties may claim we are infringing their intellectual property rights and we could be prevented from selling our products, or suffer significant litigation expense, even if these claims have no merit. We face strong competition for skilled workers which could result in our inability to attract and retain necessary personnel. We may not be able to successfully integrate future acquisitions, which could result in our not achieving the expected benefits of the acquisition, the disruption of our business and an increase in our costs. Risks Relating to Our Class A Common Stock has been volatile in the past and may decline in the future. Future sales of our Class A Common Stock in the public market could lower our stock price, and conversion of our warrants and any additional capital raised by us may dilute your ownership in the Company. Shares eligible for public sale in the future could decrease the price of our Class A Common Stock and reduce our future ability to raise capital. We do not intend to pay dividends.

Full 10-K form ▸

869986--6/29/2009--ADVANCED_PHOTONIX_INC