913590--2/14/2006--CELLSTAR

related topics

{customer, product, revenue}

{product, market, service}

{regulation, change, law}

{stock, price, operating}

{cost, operation, labor}

{stock, price, share}

{operation, international, foreign}

{system, service, information}

{tax, income, asset}

{personnel, key, retain}

{control, financial, internal}

{competitive, industry, competition}

{operation, natural, condition}

{capital, credit, financial}

{loss, insurance, financial}

The demand for our products depends in large part on the continued growth of the wireless industry. A marked decline in growth of the wireless industry and/or demand for wireless products in the areas in which we operate could have an adverse effect on our business. A significant portion of our business is in the Latin American Region, which bears additional risks that U.S. companies do not have. Quality issues with our suppliers products could cause delays in receiving products, resulting in shipment delays to our customers Shortages of certain high-demand products or components could result in a disruption of our ability to fulfill the orders of our customers. The global wireless industry is intensely competitive and we may not be able to continue to compete successfully in this industry. We have taken, and continue to take, cost-reduction actions. Our ability to complete these actions and the positive impact of such actions on our business may be limited by a variety of factors. The cost reduction actions, in turn, may expose us to additional risk and have an adverse effect on our sales and profitability. We may not be able to access capital under our existing debt facilities. We have deferred tax assets that we may not be able to realize. Changes in government policies and laws or economic conditions may adversely affect our financial results. We rely on complex information technology systems and networks to operate our business. Any significant system or network disruption could have a material adverse impact on our operations, sales and operating results. Our share price has been and may continue to be volatile. Compliance with changing regulation of corporate governance and public disclosure may result in additional expenses. The loss or reduction in orders from principal customers or a reduction in prices we are able to charge these customers could materially adversely affect our business. Our business may be adversely impacted by continued consolidation in the wireless market. We depend upon a limited number of suppliers to supply our products who may not provide us with competitive products at reasonable prices when we need them in the future, or with adequate financing to secure such products. Weaknesses in our internal control over financial reporting could have an adverse effect on our financial statements and our operations. We may incur losses if we are unable to collect our accounts receivable. Our future operating results will depend on our ability to maintain or improve operating margins. Rapid technological changes in the global wireless industry could have a material adverse effect on our business. Unforeseen events could disrupt our operations. Our operating results could vary significantly due to fluctuations in promotional and/or purchasing patterns. Our continued growth depends on retaining our current key employees and attracting additional qualified personnel. We have securities related to awards granted pursuant to our CellStar Corporation 2003 Long-Term Incentive Plan and our 1993 Amended and Restated Long-Term Incentive Plan, which, if issued, could potentially result in dilution to existing shareholders and an increase in compensation expense.

Full 10-K form ▸

913590--2/14/2006--CELLSTAR_CORP