909326--6/12/2007--ASYST_TECHNOLOGIES

related topics

{customer, product, revenue}

{condition, economic, financial}

{regulation, change, law}

{product, market, service}

{financial, litigation, operation}

{personnel, key, retain}

{property, intellectual, protect}

{acquisition, growth, future}

{control, financial, internal}

We have risk of material losses including attorney fees and expenses in conjunction with ongoing lawsuits. If we continue to fail to achieve and maintain effective disclosure controls and procedures and internal control over financial reporting on a consolidated basis, our stock price and investor confidence in our Company could be materially and adversely affected. Our global operations subject us to risks that may negatively affect our results of operations and financial condition. Fluctuations in the demand for and mix of products sold may adversely affect our financial results. Most of our Fab Automation Product manufacturing is outsourced to a single contract manufacturer, which could disrupt the availability of our Fab Automation Products and adversely affect our gross margins. Shortages of components necessary for product assembly by Solectron or us can delay shipments to our customers and can lead to increased costs, which may negatively impact our financial results. We depend on large purchases from a few significant customers, and any loss, cancellation, reduction or delay in purchases by, or failure to collect receivables from these customers could harm our business. We operate in an intensely competitive industry, and our failure to respond quickly to technological developments and introduce new products and features could have an adverse effect on our ability to compete. We may be unable to protect our intellectual property rights and we may become involved in litigation concerning the intellectual property rights of others. Our results of operations could vary as a result of the methods, estimates, and judgments we use in applying our accounting policies. Changes in our effective tax rate may have an adverse effect on our results of operations. We may not be able to integrate efficiently the operations of our acquisitions, and may incur substantial losses in the divestiture of assets or operations. We have continued to experience unexpected turnover in our finance department, and this has had an adverse impact on our business; In order to compete, we must attract, retain, and motivate key employees Company wide, and our failure to do so could have an adverse effect on our results of operations. Risks Related to Our Industry The semiconductor manufacturing equipment industry is highly cyclical and is affected by recurring downturns in the semiconductor industry, and these cycles can harm our operating results.

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909326--6/12/2007--ASYST_TECHNOLOGIES_INC