887433--3/30/2006--AMPEX_CORP

related topics

{stock, price, operating}

{provision, law, control}

{debt, indebtedness, cash}

{cost, contract, operation}

{regulation, change, law}

{property, intellectual, protect}

{competitive, industry, competition}

{operation, international, foreign}

{product, market, service}

{customer, product, revenue}

{cost, regulation, environmental}

{personnel, key, retain}

{financial, litigation, operation}

{acquisition, growth, future}

{regulation, government, change}

{condition, economic, financial}

Risk Related to our Business Our operating results and income have fluctuated significantly in the past and will continue to fluctuate, and we may not be profitable in the future. Our licensing revenue may be materially and adversely affected due to the expiration of one of our patents in April 2006. Furthermore, if we are unable to protect our intellectual property adequately, our revenues will be reduced and we may not be able to compete effectively. Our revenues and operations may be adversely affected if we are not successful in our current and future legal actions or proceedings. Our business depends materially on U.S. government spending, and a decrease in that spending may adversely affect our revenues and earnings. We have substantial unfunded pension liabilities, which may adversely affect our liquidity and our ability to maintain or grow our operations. Our substantial indebtedness could materially adversely affect our operations and financial results and prevent us from obtaining additional financing, if necessary. Our substantial debt service and pension obligations may reduce our cash flow and our ability to operate our business. If we acquire companies in the future, we may experience integration costs and the acquired businesses may not perform as we expect. If we are unable to respond to rapid technological change or to develop new products, our revenues and results of operations will be adversely affected. We have numerous significant competitors in our Recorders segment, some of which have greater financial resources than we do. We rely on a limited number of key suppliers and vendors to operate our business. If these suppliers or vendors experience problems or favor our competitors, we could fail to obtain sufficient quantities of products and services we require to operate our business successfully. Our international operations subject us to social, political and economic risks of doing business in foreign countries. We are dependent on certain key personnel and the loss of one or more these individuals could disrupt our operations and adversely affect our financial results. We are subject to environmental regulation and could incur substantial costs as a result of violations of or liabilities under environmental laws. Complying with new regulatory and accounting requirements will be challenging and may adversely affect our business and operations, and the trading price of our securities. Risks Related to the Ownership of our Common Stock The future price of our common stock may fluctuate significantly. Future sales or the possibility of future sales of substantial amounts of our common stock by our officers and directors may cause the price of our common stock to decline. Anti-takeover provisions in our certificate of incorporation and by-laws may reduce the likelihood of any potential change of control or unsolicited acquisition proposal that you might consider favorable. Our board of directors may issue preferred stock without stockholder approval. Our executive officers and directors will continue to have substantial control over our company, which may prevent you or other stockholders from influencing significant corporate decisions.

Full 10-K form ▸

887433--3/30/2006--AMPEX_CORP_/DE/