887730--5/25/2010--KEMET

related topics

{operation, international, foreign}

{stock, price, share}

{product, market, service}

{cost, regulation, environmental}

{condition, economic, financial}

{regulation, government, change}

{cost, operation, labor}

{personnel, key, retain}

{tax, income, asset}

{competitive, industry, competition}

{capital, credit, financial}

{stock, price, operating}

The continued uncertainty of the economy could impact our ability to realize operating plans if the demand for our products declines and could adversely affect our liquidity and ability to continue to operate. Adverse economic conditions could cause further reevaluation and the write down of long-lived assets. An increase in the cost or decrease in the availability of our principal raw materials could adversely affect profitability. We face intense competition. Certain of our capacitors are incorporated into products used in heavily regulated industries. We manufacture many capacitors in Europe, Mexico and Asia and future political or regulatory changes in any of these regions could adversely affect our profitability. We may experience difficulties, delays or unexpected costs in completing the restructuring plan. Losing the services of our executive officers or our other highly qualified and experienced employees or our inability to continue to attract and retain additional qualified personnel could harm our business. We must continue to develop innovative products to maintain relationships with our customers and to offset potential price erosion in older products. Various laws and regulations that apply to our business, including those relating to environmental matters, could limit our ability to operate as we are currently and could result in additional costs. Volatility of financial and credit markets could affect our access to capital. We are currently listed on the OTC Bulletin Board which could have an adverse effect on our financial condition and results of operations. Our inability to purchase forward exchange contracts exposes us to foreign exchange gains and losses. We must consistently reduce the total costs of our products to remain competitive. Our use of net operating loss carryforwards could be limited by ownership changes. Holders of our common stock are subject to the risk of dilution as a result of the warrant held by K Equity, LLC. The exercise of the warrant by K Equity, LLC may result in the existence of a controlling stockholder that may have interests that conflict with our interests and those of our other stockholders.

Full 10-K form ▸

887730--5/25/2010--KEMET_CORP