894237--7/3/2008--VISION_SCIENCES_INC

related topics

{product, market, service}

{product, liability, claim}

{operation, international, foreign}

{customer, product, revenue}

{personnel, key, retain}

{property, intellectual, protect}

{control, financial, internal}

{stock, price, share}

{regulation, government, change}

{condition, economic, financial}

We have a history of operating losses and we may not achieve or maintain profitability in the future Our stock price is volatile, and you may not be able to sell your shares for a profit Rapid growth and a rapidly changing operating environment may strain our limited resources Our inability to continue to hire and retain key employees could have a negative impact on our future operating results Our products and manufacturing practices are subject to regulation by the FDA and by other state and foreign regulatory agencies Reimbursements from third-party healthcare payers is uncertain because of factors beyond our control, and changes in third-party healthcare payers' policies could adversely affect our sales growth We currently purchase certain critical components from several single source manufacturers under various supply agreements, and if these manufacturers are unable or unwilling to produce components, meeting our specifications in quantities that meet our production needs, our business will be harmed We depend on a small group of independent distributors for all of our revenues, and this dependence is likely to continue in the future. Although we intend to expand this group, there is no assurance that we will be able to manage them If we fail to effectively manage our distribution network, our business, prospects and brand may be materially and adversely affected by actions taken by our distributors Competition in the medical device industry is intense, and many of our competitors have greater resources than we do If we fail to increase awareness and acceptance of our new videoscope system in the medical community, we will not be able to grow or even sustain our business We may not succeed in sustaining a market for our new videoscopes We need to expand our outside sales force to maintain and grow our business and product-sale revenues. Our failure to expand and maintain an effective sales force or successfully develop our relationship with other distributors, may materially and adversely affect our business, prospects and brand New product development in the medical device and supply industry is both costly and labor-intensive and has a very low rate of successful commercialization If we do not continue to develop and commercialize new products and identify new markets for our products and technology, we may not remain competitive, and our revenues and operating results could suffer Our operating results could be negatively impacted if we are unable to capitalize on research and development spending We expect gross margins to vary over time, and our level of product gross margins may not be sustainable Product quality problems could lead to reduced revenue, gross margins and net income Our costs could substantially increase if we experience a significant number of warranty claims Product liability suits against us may result in expensive and time consuming litigation, payment of substantial damages, and an increase in our insurance rates We sell our products in numerous international markets Our operating results could be negatively impacted by economic, political or other developments in countries in which we do business Conditions in Israel affect our operations and may limit our ability to produce and sell our products Currency exchange rate fluctuations could adversely affect our operating results We are exposed to credit risk of some of our customers We may not be able to protect our intellectual property rights or technology effectively We may not be able to complete our consolidation on time

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894237--7/3/2008--VISION_SCIENCES_INC_/DE/