933974--11/29/2007--BROOKS_AUTOMATION

related topics

{customer, product, revenue}

{financial, litigation, operation}

{property, intellectual, protect}

{competitive, industry, competition}

{product, market, service}

{cost, operation, labor}

{product, liability, claim}

{personnel, key, retain}

{operation, international, foreign}

{acquisition, growth, future}

{control, financial, internal}

{stock, price, operating}

Risks Relating to Our Industry Due in part to the cyclical nature of the semiconductor manufacturing industry and related industries, we have recently incurred operating losses and may have future losses. We face substantial competition which may lead to price pressure and otherwise adversely affect our sales. Our operating results could fluctuate significantly, which could negatively impact our business. Delays and technical difficulties in our products and operations may result in lost revenue, lost profit, delayed or limited market acceptance or product liability claims. If we do not continue to introduce new products and services that reflect advances in technology in a timely and effective manner, our products and services will become obsolete and our operating results will suffer. The global nature of our business exposes us to multiple risks. Our business could be materially harmed if we fail to adequately integrate the operations of the businesses that we have acquired or may acquire. The divestiture of the Brooks Software Division could adversely affect our business or our financial results. Failure to retain key personnel could impair our ability to execute our business strategy. We face risks related to the restatement of our financial statements and the pending SEC and US Attorney investigations regarding our past practices with respect to equity incentives. We face litigation risks relating to our past practices with respect to equity incentives that could have a material adverse effect on the Company. Risks Relating to Our Customers Because we rely on a limited number of customers for a large portion of our revenues, the loss of one or more of these customers could materially harm our business. Because of the lengthy sales cycles of many of our products, we may incur significant expenses before we generate any revenues related to those products. Customers generally do not make long term commitments to purchase our products and our customers may cease purchasing our products at any time. We may be subject to claims of infringement of third-party intellectual property rights, or demands that we license third-party technology, which could result in significant expense and prevent us from using our technology. Our failure to protect our intellectual property could adversely affect our future operations. If the site of the majority of our manufacturing operations were to experience a significant disruption in operations, our business could be materially harmed. Our business could be materially harmed if one or more key suppliers fail to deliver key components. We are exposed to potential risks and we will continue to incur increased costs as a result of the internal control testing and evaluation process mandated by Section 404 of the Sarbanes-Oxley Act of 2002.

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933974--11/29/2007--BROOKS_AUTOMATION_INC