96057--10/4/2006--SYS

related topics

{regulation, government, change}

{stock, price, share}

{customer, product, revenue}

{acquisition, growth, future}

{property, intellectual, protect}

{personnel, key, retain}

{debt, indebtedness, cash}

{stock, price, operating}

{financial, litigation, operation}

Risks Related to Our Business We depend upon a single customer, the U.S. Government, for the majority of our revenues, and a decrease in its demand for our services, or pricing modifications by prime contractors, might harm our operating results. A significant number of our customers are government agencies which are subject to unique political and budgetary constraints and have special contracting requirements that may affect our ability to obtain other new government customers. Our inability to adequately retain or protect our employees, customer relationships and proprietary technology could harm our ability to compete. The departure of certain key personnel could affect the financial condition of SYS due to the loss of their expertise and customer relationships. We face numerous competitors, and as a result, we may not get the business we seek. We must comply with numerous U.S. Government regulations. We must comply with numerous U.S. Government regulations. Accuracy of indirect billing rates is critical. We rely on subcontractors whose performance could have an adverse impact on our relationships with our customers and our operating results. If we are unable to obtain or maintain security clearances, we may not be able to perform certain work. There are risks associated with our planned growth, such as a possible inability to manage our growth. Our future results could be adversely affected by various significant non-cash charges, which could impair our ability to achieve or maintain profitability in the future. Our future results could be adversely affected by various significant non-cash charges, which could impair our ability to achieve or maintain profitability in the future. We have very limited funds upon which to rely for adjusting to business variations and for growing new businesses. We may violate financial covenants under our line of credit which could have a material adverse effect on our liquidity and financial condition. There are a large number of shares that are available for future sale, and the sale of these shares may depress the market price of our common stock. There is a limited market for our common stock which could impact your ability to sell your shares. Future sales of our common stock by existing shareholders under Rule 144 could decrease the trading price of our common stock. Our directors, executive officers and affiliated persons beneficially own a significant amount of our stock, and their interests could conflict with yours.

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