881665--2/26/2009--DA-LITE_SCREEN_CO_INC

related topics
{product, market, service}
{cost, regulation, environmental}
{cost, operation, labor}
{operation, international, foreign}
{personnel, key, retain}
{tax, income, asset}
{capital, credit, financial}
{condition, economic, financial}
{customer, product, revenue}
The increased demand for projection screens in some recent periods resulted in large part from changes in projector technology, the increased use of visual presentation tools and other industry trends. Any changes in these trends could adversely affect the demand for the Company s products. Substantial competition from existing or new competitors or products could reduce the Company s market share and harm its results. We have been adversely affected by the current difficult economic and market conditions, including conditions in the residential and commercial real estate markets, and the continuation or worsening of these conditions could further negatively impact our results and financial condition. The Company s success depends on its ability to retain its senior management and other key personnel. Shortages of materials or components could adversely affect the Company s results. Changing technology requires the Company to make continued product innovations to remain competitive. Any failure to make innovations could adversely affect the Company s competitive position. A casualty or work stoppage relating to the Company s Warsaw, Indiana facility or other facilities could adversely affect its results. The Company may incur material liabilities under various environmental laws. Fluctuations in currency exchange rates could adversely affect the Company s sales and profits. The Company expects that it will need to refinance most of its current indebtedness on or before its maturity in May of 2011, and there is no assurance as to the cost or availability of this replacement financing. The Company cannot make assurances that it will continue to qualify as an S corporation and will continue to be generally exempt from United States federal or state income taxes. A failure to qualify as an S corporation could subject the Company to federal and state income taxes.

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