887730--6/30/2009--KEMET

related topics

{operation, international, foreign}

{condition, economic, financial}

{stock, price, share}

{cost, regulation, environmental}

{tax, income, asset}

{interest, director, officer}

{regulation, government, change}

{product, market, service}

{personnel, key, retain}

{cost, operation, labor}

{acquisition, growth, future}

{capital, credit, financial}

Generally adverse economic and industry conditions, including a decline in demand for our products, could reduce our profitability. The continued economic downturn could impact our ability to realize current operating plans and could materially adversely affect our liquidity and our ability to continue to operate. There is substantial doubt about our ability to continue as a going concern. Adverse economic conditions could cause further reevaluation and the write down of long-lived assets. Accounting for the Impairment or Disposal of Long-Lived Assets An increase in the cost or decrease in availability of our principal raw materials could adversely affect profitability. 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 not be able to successfully integrate acquisitions with our operations. 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. Environmental laws and regulations could limit our ability to operate as we are currently and could result in additional costs. We may not achieve the expected benefits of our manufacturing relocation plan and cost reduction plans we have made or may adopt in the future. 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 combat the impact of downward price trends. 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 issuance of a warrant to K Financing. The exercise of the warrant by K Financing may result in the existence of a controlling shareholder, and consequently may limit the ability of other shareholders to influence the direction and decisions of the Company.

Full 10-K form ▸

887730--6/30/2009--KEMET_CORP