915779--6/23/2008--DAKTRONICS_INC

related topics

{customer, product, revenue}

{product, market, service}

{product, liability, claim}

{operation, natural, condition}

{stock, price, operating}

{condition, economic, financial}

{operation, international, foreign}

{property, intellectual, protect}

{personnel, key, retain}

{provision, law, control}

{acquisition, growth, future}

{control, financial, internal}

{debt, indebtedness, cash}

Competition could result in lower sales and decreased margins. We enter into fixed-priced contracts on a regular basis. Backlog may not be indicative of future revenue. Our ability to conduct business outside the United States may be adversely affected by factors outside of our control, which could adversely affect net sales and profits from international sales. Our operating results may vary significantly from quarter to quarter, making it difficult to estimate future revenue and earnings. Our products are covered by warranties and fulfilling these warranties could adversely affect our financial results. Product liability claims not covered by insurance could adversely affect our financial condition and results of operations. Large contracts with significant customers represent a significant portion of our accounts receivable and costs and estimated earnings in excess of billings. The amounts of our orders and net sales and our financial results will be substantially affected by whether we are awarded large contracts and the size and timing of large contracts. The terms and conditions of our credit facility impose restrictions on our operations, and if we default on our credit facility, it could have a material adverse effect on our results of operations and financial condition. Our ability to satisfy any debt obligations will depend upon our future operating performance, which will be affected by prevailing economic, financial and business conditions and other factors, some of which are beyond our control. We may make future acquisitions, which may be difficult to integrate, divert management resources, result in unanticipated costs or dilute our shareholders. Our business is partially subject to risks of terrorist acts and, to a lesser degree, acts of war. We may fail to continue to attract, develop and retain key management and other key employees, which could negatively impact our operating results. We may be unable to protect our intellectual property rights. We maintain inventory that is subject to obsolescence and write downs to the extent it is replaced through product enhancements or advances in technology. We depend on single-source suppliers for some of the raw materials used in the manufacture of our products. If our internal control over financial reporting is found to be inadequate, our financial results may not be accurate, raising concerns for investors and potentially adversely affecting our stock price. Our manufacturing would be interrupted if we were unable to use one of our manufacturing facilities. The protections we have adopted may cause takeover offers to be decided by the Board rather than our shareholders.

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915779--6/23/2008--DAKTRONICS_INC_/SD/