| W e suffered operating losses of dlra2cmam888cmam000 and dlra832cmam000 in 2004 and 2003 , respectively |
| IF WE ARE UNABLE TO SECURE NECESSARY FINANCING, WE MAY NOT BE ABLE TO FUN D OUR OPERATIONS OR STRATEGIC GROWTH In order to achieve our strategic business objectives, we may be require d to seek additional financing |
| We may be unable to renew our existing credi t facilities or obtain new financing on acceptable terms, or at all |
| Under certai n of our existing credit facilities, we are required to obtain the lenders &apos consent for most additional debt financing and to comply with other covenants , including specific financial ratios |
| For example, we may require further capita l to continue to develop our technology and infrastructure and for working capita l purposes |
| In addition, future acquisitions would likely require additiona l equity and/or debt financing |
| Our failure to secure additional financing coul d have a material adverse effect on our continued development or growth |
| 8 AS A HOLDING COMPANY, WE DEPEND ON THE OPERATIONS OF OUR SUBSIDIARIES T O MEET OUR OBLIGATIONS We are a holding company that transacts all of our business throug h operating subsidiaries |
| Our primary assets are the shares of our operatin g subsidiaries |
| Our ability to meet our operating requirements and to make othe r payments depends on the surplus and earnings of our subsidiaries and thei r ability to pay dividends or to advance or repay funds |
| Payments of dividends an d advances and repayments of inter-company debt by our subsidiaries are restricte d by our credit agreements |
| WE MAY MAKE ACQUISITIONS THAT ARE NOT SUCCESSFUL OR FAIL TO PROPERL Y INTEGRATE ACQUIRED BUSINESSES INTO OUR OPERATIONS We intend to explore opportunities to buy other businesses or technologie s that could complement, enhance or expand our current business or product line s or that might otherwise offer us growth opportunities |
| We may have difficult y finding such opportunities or, if we do identify such opportunities, we may no t be able to complete such transactions for reasons including a failure to secur e necessary financing |
| Any transactions that we are able to identify and complete may involve a number of risks, including: o the diversion of our managementapstas attention from our existin g business to integrate the operations and personnel of th e acquired or combined business or joint venture; o possible adverse effects on our operating results during th e integration process; o substantial acquisition related expenses, which would reduce ou r net income in future years; o the loss of key employees and customers as a result of changes i n management; and o our possible inability to achieve the intended objectives of th e transaction |
| In addition, we may not be able to successfully or profitably integrate , operate, maintain and manage our newly acquired operations or employees |
| We ma y not be able to maintain uniform standards, controls, procedures and policies , and this may lead to operational inefficiencies |
| YOUR ABILITY TO INFLUENCE CORPORATE DECISIONS MAY BE LIMITED BECAUSE OU R PRINCIPAL SHAREHOLDERS OWN IN THE AGGREGATE 41prca OF OUR COMMON STOCK Our principal shareholders currently own in the aggregate approximately 41 % of our outstanding common stock |
| These shareholders may be able to determine wh o will be elected to our board of directors and to control substantially al l matters requiring approval by our shareholders, including mergers, sales o f assets and approval of other significant corporate transactions, in a manne r with which you may not agree or that may not be in your best interest |
| Thi s concentration of stock ownership may adversely affect the trading price for ou r common stock because investors often perceive disadvantages in owning stock i n companies with controlling shareholders |
| PROVISIONS IN OUR CHARTER DOCUMENTS AND UNDER INDIANA LAW MAY PREVENT O R DELAY A CHANGE OF CONTROL OF US AND COULD ALSO LIMIT THE MARKET PRICE OF OU R COMMON SHARES Provisions of our certificate of incorporation and bylaws, as well a s provisions of Indiana corporate law, may discourage, delay or prevent a merger , acquisition or other change in control of our company, even if such a change i n control would be beneficial to our shareholders |
| These provisions may als o prevent or frustrate attempts by our shareholders to replace or remove ou r management |
| These provisions include those: o prohibiting our shareholders from fixing the number of ou r directors; o requiring advance notice for shareholder proposals an d nominations; and o prohibiting shareholders from acting by written consent, unles s unanimous |
| We are subject to certain provisions of the Indiana Business Corporatio n Law, or IBCL, that limit business combination transactions with 10prca shareholder s during the first five years of their ownership, absent approval of our board o f directors |
| The IBCL also contains control share acquisition provisions tha t limit the ability of certain shareholders to vote their shares unless thei r control share acquisition was approved in advance by shareholders |
| Thes e 9 provisions and other similar provisions make it more difficult for shareholder s or potential acquirers to acquire us without negotiation and could limit th e price that investors are willing to pay in the future for our common shares |
| COMPLIANCE WITH CHANGING REGULATION OF CORPORATE GOVERNANCE AND PUBLI C DISCLOSURE WILL EITHER REQUIRE US TO INCUR ADDITIONAL EXPENSES OR CEASE TO BE A REPORTING COMPANY Keeping abreast of, and in compliance with, changing laws, regulations an d standards relating to corporate governance and public disclosure, including th e Sarbanes-Oxley Act of 2002, new SEC regulations and American Stock Exchang e rules, will require an increased amount of management attention and externa l resources |
| We would be required to invest additional resources to comply wit h evolving standards, which would result in increased general and administrativ e expenses and a diversion of management time and attention fro m revenue-generating activities to compliance activities |
| Our Board of Directors may determine that it is in the best interests o f shareholders to eliminate or reduce such expense by ceasing to be a reportin g company for purposes of the Securities Exchange Act of 1934, as amended |
| On e commonly used method, subject to shareholder approval, is to effect a revers e share split to reduce the number of shareholders to fewer than 300, permittin g termination of registration |
| Under this method, shareholders who own less tha n one whole common share following the reverse split would cease to b e shareholders and would receive a cash payment for their fractional shares |
| Afte r a reverse split, there might be no established trading market for our commo n shares, although we expect that our common shares may then be quoted on th e "e pink sheets "e |
| WE MAY BE EXPOSED TO LIABILITY AS A RESULT OF BEING NAMED AS A DEFENDANT I N A LAWSUIT BROUGHT UNDER THE SO-CALLED "e QUI TAM "e PROVISIONS OF THE FEDERAL FALS E CLAIMS ACT The Company, Lynch Interactive Corporation, which was formed via a tax-fre e spin-off from Lynch Corporation on September 1, 1999 ( "e Lynch Interactive "e ) an d various other parties are defendants in a lawsuit brought under the so-calle d "e qui tam "e provisions of the federal False Claims Act in the United State s District Court for the District of Columbia |
| The main allegation in the case i s that the defendants participated in the creation of "e sham "e bidding entities tha t allegedly defrauded the US Treasury Department by improperly participating i n Federal Communications Commission spectrum auctions restricted to smal l businesses, and obtained bidding credits in other spectrum auctions allocated t o "e small "e and "e very small "e businesses |
| The lawsuit seeks to recover an unspecifie d amount of damages, which amount would be automatically tripled under th e statute |
| Although Lynch Interactive is contractually bound to indemnify us fo r any losses or damages we may incur as a result of this lawsuit, Lync h Interactive may lack the capital resources to do so |
| As a result, we could b e held liable and forced to pay a significant amount of damages without recourse |
| WE DO NOT ANTICIPATE PAYING CASH DIVIDENDS ON OUR COMMON SHARES IN TH E FORESEEABLE FUTURE We anticipate that all of our earnings will be retained for the developmen t of our business |
| The Board of Directors has adopted a policy of not paying cas h dividends on our common shares |
| The Company also has restrictions under our deb t agreements which limit our ability to pay dividends |
| We do not anticipate payin g cash dividends on our common shares in the foreseeable future |
| As a result of lo w trading volume in our common shares, the purchase or sale of a relatively smal l number of shares could result in significant share price fluctuations |
| Our shar e price may fluctuate significantly in response to a number of factors, includin g the following, several of which are beyond our control: o changes in financial estimates or investment recommendations b y securities analysts relating to our shares; 10 o loss of a major customer; o announcements by us or our competitors of significant contracts , acquisitions, strategic partnerships, joint ventures or capita l commitments; and o changes in key personnel |
| In the past, securities class action litigation has often been brough t against a company following periods of volatility in the market price of it s securities |
| We could be the target of similar litigation in the future |
| Securities litigation, regardless of merit or ultimate outcome, would likel y cause us to incur substantial costs, divert managementapstas attention an d resources, harm our reputation in the industry and the securities markets an d reduce our profitability |
| SECURITIES ANALYSTS MAY NOT INITIATE COVERAGE OF OUR COMMON SHARES OR MA Y ISSUE NEGATIVE REPORTS, AND THIS MAY HAVE A NEGATIVE IMPACT ON THE MARKET PRIC E OF OUR COMMON SHARES We cannot assure you that securities analysts will initiate coverage an d publish research reports on us |
| It is difficult for companies with smalle r market capitalizations, such as us, to attract independent financial analyst s who will cover our common shares |
| If securities analysts do not, this lack o f research coverage may adversely affect the market price of our common shares |
| IF WE ARE UNABLE TO INTRODUCE INNOVATIVE PRODUCTS, DEMAND FOR OUR PRODUCT S MAY DECREASE Our future operating results are dependent on our ability to continuall y develop, introduce and market innovative products, to modify existing products , to respond to technological change and to customize some of our products to mee t customer requirements |
| There are numerous risks inherent in this process , including the risks that we will be unable to anticipate the direction o f technological change or that we will be unable to develop and market ne w products and applications in a timely or cost-effective manner to satisf y customer demand |
| OUR OPERATING RESULTS AND FINANCIAL CONDITION COULD BE MATERIALLY ADVERSEL Y AFFECTED BY ECONOMIC, POLITICAL, HEALTH, REGULATORY AND OTHER FACTORS EXISTIN G IN FOREIGN COUNTRIES IN WHICH WE OPERATE As we have significant international operations, our operating results an d financial condition could be materially adversely affected by economic , political, health, regulatory and other factors existing in foreign countries i n which we operate |
| Our international operations are subject to inherent risks , which may materially adversely affect us, including: o political and economic instability in countries in which ou r products are manufactured and sold; o expropriation or the imposition of government controls; o sanctions or restrictions on trade imposed by the United State s government; o export license requirements; o trade restrictions; o currency controls or fluctuations in exchange rates; o high levels of inflation or deflation; o greater difficulty in collecting our accounts receivable an d longer payment cycles; o changes in labor conditions and difficulties in staffing an d managing our international operations; and o limitations on insurance coverage against geopolitical risks , natural disasters and business operations |
| In addition, these same factors may also place us at a competitiv e disadvantage when compared to some of our foreign competitors |
| In response t o competitive pressures and customer requirements, we may further expan d internationally at lower cost locations |
| If we expand into these locations, w e will be required to incur additional capital expenditures |
| 11 OUR BUSINESSES ARE CYCLICAL A DECLINE IN DEMAND IN THE ELECTRONI C COMPONENT AND GLASS COMPONENT INDUSTRIES MAY RESULT IN ORDER CANCELLATIONS AN D DEFERRALS AND LOWER AVERAGE SELLING PRICES FOR OUR PRODUCTS Our subsidiaries sell to industries that are subject to cyclical economi c changes |
| The electronic component and glass component industries in general, an d specifically the Company, could experience a decline in product demand on a global basis, resulting in order cancellations and deferrals and lower averag e selling prices |
| A slowing of growth in the demand for components used b y telecommunications infrastructure manufacturers and newer technologie s introduced in the glass display industry could lead to a decline |
| OUR MARKETS ARE HIGHLY COMPETITIVE, AND WE MAY LOSE BUSINESS TO LARGER AN D BETTER-FINANCED COMPETITORS Our markets are highly competitive worldwide, with low transportation cost s and few import barriers |
| We compete principally on the basis of product qualit y and reliability, availability, customer service, technological innovation , timely delivery and price |
| All of the industries in which we compete have becom e increasingly concentrated and globalized in recent years |
| Our major competitors , some of which are larger than us, and potential competitors have substantiall y greater financial resources and more extensive engineering, manufacturing , marketing and customer support capabilities than we have |
| OUR SUCCESS DEPENDS ON OUR ABILITY TO RETAIN OUR KEY MANAGEMENT AN D TECHNICAL PERSONNEL AND ATTRACTING, RETAINING, AND TRAINING NEW TECHNICA L PERSONNEL Our future growth and success will depend in large part upon our ability t o retain our existing management and technical team and to recruit and retai n highly skilled technical personnel, including engineers |
| The labor markets i n which we operate are highly competitive and most of our operations are no t located in highly populated areas |
| Our failure to hire, retain or adequately train ke y personnel could have a negative impact on our performance |
| Mtron/PTI &apos S BACKLOG MAY NOT BE INDICATIVE OF FUTURE REVENUES AND MA Y ADVERSELY AFFECT OUR BUSINESS Mtron/PTIapstas backlog comprises orders that are subject to specifi c production release orders under written contracts, oral and written orders fro m customers with which Mtron/PTI has had long-standing relationships and writte n purchase orders from sales representatives |
| Mtron/PTIapstas customers may orde r components from multiple sources to ensure timely delivery when backlog i s particularly long and may cancel or defer orders without significant penalty |
| They often cancel orders when business is weak and inventories are excessive, a phenomenon that Mtron/PTI experienced in the most recent economic slowdown |
| As a result, Mtron/PTIapstas backlog as of any particular date may not be representativ e of actual revenues for any succeeding period |
| Mtron/PTI RELIES UPON ONE CONTRACT MANUFACTURER FOR A SIGNIFICANT PORTIO N OF ITS FINISHED PRODUCTS, AND A DISRUPTION IN ITS RELATIONSHIP COULD HAVE A NEGATIVE IMPACT ON Mtron/PTI &apos S REVENUES In 2005, approximately 14prca of Mtron/PTIapstas revenue was attributable t o finished products that were manufactured by an independent contract manufacture r located in both Korea and China |
| We expect this manufacturer to account for a smaller but substantial portion of Mtron/PTIapstas revenues in 2006 and a materia l portion of Mtron/PTIapstas revenues for the next several years |
| Mtron/PTI does no t have a written, long-term supply contract with this manufacturer |
| If thi s manufacturer becomes unable to provide products in the quantities needed, or a t acceptable prices, Mtron/PTI would have to identify and qualify acceptabl e replacement manufacturers or manufacture the products internally |
| Due t o specific product knowledge and process capability, Mtron/PTI could encounte r difficulties in locating, qualifying and entering into arrangements wit h replacement manufacturers |
| As a result, a reduction in the production capabilit y or financial viability of this manufacturer, or a termination of, or significan t interruption in, Mtron/PTIapstas relationship with this manufacturer, may adversel y affect Mtron/PTIapstas results of operations and our financial condition |
| 12 Mtron/PTI PURCHASES CERTAIN KEY COMPONENTS FROM SINGLE OR LIMITED SOURCE S AND COULD LOSE SALES IF THESE SOURCES FAIL TO FULFILL OUR NEEDS If single source components were to become unavailable on satisfactor y terms, and could not obtain comparable replacement components from other source s in a timely manner, our business, results of operations and financial conditio n could be harmed |
| On occasion, one or more of the components used in our product s have become unavailable, resulting in unanticipated redesign and related delay s in shipments |
| We cannot assure you that similar delays will not occur in th e future |
| Our suppliers may be impacted by compliance to environmental regulation s including RoHS & WEEE, which could affect our continued supply of components o r cause additional costs for us to implement new components into our manufacturin g process |
| Mtron/PTI &apos S PRODUCTS ARE COMPLEX AND MAY CONTAIN ERRORS OR DESIGN FLAWS , WHICH COULD BE COSTLY TO CORRECT When we release new products, or new versions of existing products, the y may contain undetected or unresolved errors or defects |
| Despite testing, error s or defects may be found in new products or upgrades after the commencement o f commercial shipments |
| Undetected errors and design flaws have occurred in th e past and could occur in the future |
| These errors could result in delays, loss o f market acceptance and sales, diversion of development resources, damage to ou r reputation, legal action by our customers, failure to attract new customers an d increased service costs |
| CONTINUED MARKET ACCEPTANCE OF Mtron/PTI &apos S PACKAGED QUARTZ CRYSTALS , OSCILLATOR MODULES AND ELECTRONIC FILTERS IS CRITICAL TO OUR SUCCESS, BECAUS E FREQUENCY CONTROL DEVICES ACCOUNT FOR NEARLY ALL OF Mtron/PTI &apos S REVENUES Virtually all of Mtron/PTIapstas 2005 and 2004 revenues came from sales o f frequency control devices, which consist of packaged quartz crystals, oscillato r modules and electronic filters |
| We expect that this product line will continu e to account for substantially all of Mtron/PTIapstas revenues for the foreseeabl e future |
| Any decline in demand for this product line or failure to achiev e continued market acceptance of existing and new versions of this product lin e may harm Mtron/PTIapstas business and our financial condition |
| Mtron/PTI &apos S FUTURE RATE OF GROWTH IS HIGHLY DEPENDENT ON THE DEVELOPMEN T AND GROWTH OF THE MARKET FOR COMMUNICATIONS AND NETWORK EQUIPMENT Mtron/PTIapstas business depends heavily upon capital expenditures by th e providers of communications and network services |
| In 2005, the majority o f Mtron/PTIapstas revenues was to manufacturers of communications and networ k infrastructure equipment, including indirect sales through distributors an d contract manufacturers |
| In 2006, Mtron/PTI expects a smaller but significan t portion of its revenues to be to manufacturers of communications and networ k infrastructure equipment |
| Mtron/PTI intends to increase its sales t o communications and network infrastructure equipment manufacturers in the future |
| Communications and network service providers have experienced periods o f capacity shortage and periods of excess capacity |
| In periods of excess capacity , communications systems and network operators cut purchases of capital equipment , including equipment that incorporates Mtron/PTIapstas products |
| A slowdown in th e manufacture and purchase of communications and network infrastructure equipmen t could substantially reduce Mtron/PTIapstas net sales and operating results an d adversely affect our financial condition |
| Moreover, if the market fo r communications or network infrastructure equipment fails to grow as expected , Mtron/PTI may be unable to sustain its growth |
| In addition, Mtron/PTIapstas growt h depends upon the acceptance of its products by communications and networ k infrastructure equipment manufacturers |
| If, for any reason, these manufacturer s do not find Mtron/PTIapstas products to be appropriate for their use, our futur e growth will be adversely affected |
| COMMUNICATIONS AND NETWORK INFRASTRUCTURE EQUIPMENT MANUFACTURER S INCREASINGLY RELY UPON CONTRACT MANUFACTURERS, THEREBY DIMINISHING Mtron/PTI &apos S ABILITY TO SELL ITS PRODUCTS DIRECTLY TO THOSE EQUIPMENT MANUFACTURERS There is a growing trend among communications and network infrastructur e equipment manufacturers to outsource the manufacturing of their equipment o r components |
| As a result, Mtron/PTIapstas ability to persuade these origina l equipment manufacturers to specify our products has been reduced and, in th e absence of a manufacturerapstas specification of Mtron/PTIapstas products, the price s that Mtron/PTI can charge for them may be subject to greater competition |
| 13 MtronPTI &apos S CUSTOMERS ARE SIGNIFICANTLY LARGER THAN IT AND THEY MAY EXER T LEVERAGE THAT WILL NOT BE IN THE BEST INTEREST OF MtronPTI The majority of MtronPTIapstas sales are to companies that are many times it s size |
| This size differential may put MtronPTI in a disadvantage whil e negotiating contractual terms and may result in terms that are not in the bes t interest of MtronPTI These items may include price, payment terms, produc t warranties and product consignment obligations |
| FUTURE CHANGES IN Mtron/PTI &apos S ENVIRONMENTAL LIABILITY AND COMPLIANC E OBLIGATIONS MAY INCREASE COSTS AND DECREASE PROFITABILITY Mtron/PTIapstas manufacturing operations, products and/or product packaging ar e subject to environmental laws and regulations governing air emissions , wastewater discharges, and the handling, disposal and remediation of hazardou s substances, wastes and other chemicals |
| In addition, more stringen t environmental regulations may be enacted in the future, and we cannot presentl y determine the modifications, if any, in Mtron/PTIapstas operations that any futur e regulations might require, or the cost of compliance that would be associate d with these regulations |
| We may need to change our manufacturing processes, redesign some of ou r products, and change components to eliminate these hazardous substances in ou r products in order to be able to continue to offer them for sale within th e European Union |
| W e anticipate that sales to customers located outside of the United Sates wil l continue to be a significant part of our revenues for the foreseeable future |
| Because significant portions of our sales are to customers outside of the Unite d States, we are subject to risks including foreign currency fluctuations, longe r payment cycles, reduced or limited protection of intellectual property rights , political and economic instability, and export restrictions |
| To date, very fe w of our international revenue and cost obligations have been denominated i n foreign currencies |
| As a result, in increase in the value of the US dolla r relative to foreign currencies could make our products more expensive and thus , less competitive in foreign markets |
| We do not currently engage in foreig n currency hedging activities, but may do so in the future to the extent that suc h obligations become more significant |
| LYNCH SYSTEMS &apos REVENUE IS LARGELY DEPENDENT ON DEMAND FOR ITS TELEVISION S AND COMPUTER MONITORS BASED ON CATHODE-RAY TUBE TECHNOLOGY THIS TECHNOLOGY WIL L EVENTUALLY BE REPLACED BY PLASMA AND LIQUID CRYSTAL DISPLAYS Lynch Systems generates a significant portion of its revenue from sales t o glass producers that supply television and computer monitor displays that ar e based on cathode-ray tube technology |
| This market is being rapidly penetrated b y thinner, lighter weight plasma displays and liquid crystal displays |
| Althoug h cathode-ray tube televisions and computer monitors currently retain advantage s in image quality and price, glass producers are investing billions of dollars t o improve the quality and lower the unit price of plasma, liquid crystal and othe r display types |
| We believe that market penetration by plasma and liquid crysta l display producers will continue and eventually render obsolete cathode-ray tub e technology and this Lynch Systems product line |
| Lync h Systems &apos sales to its largest customer accounted for approximately 46prca and 36 % 14 of its revenues in 2005 and 2004, respectively |
| If a significant custome r reduces, delays or cancels its orders for any reason, the business and result s of operations of Lynch Systems would be negatively affected |
| A MULTIPLE MACHINE ORDER WITH A SIGNIFICANT CUSTOMER IN THE TABLEWAR E MARKET MAY NOT BE REALIZED IN FULL Lynch Systems has a significant order for glass manufacturing machine s which may not be realized in full |
| In 2004, Lynch Systems signed a contract t o sell five machines for a total purchase price of dlra2cmam350cmam000 |
| The contract wa s accounted for under the percentage of completion method |
| Throughout 2004 an d 2005, revenues totaling approximately dlra1cmam983cmam000 were recorded relating to th e five machines based upon the percentage completed |
| There was no profit recorde d to date on this contract |
| The installation of the machine has been delayed several times due t o the customer temporarily closing down its plant |
| The customer has now indicate d that the plant will open in mid 2006 and that the machine can be installed a t that time |
| The customer has stated that when the first machine is operational , it will pay for the first machine and accept deliveries on three additiona l machines over the next 12 to 18 months |
| Management fully expects that th e customer will honor its commitment; however, the Company has provided a reserv e of dlra350cmam000 against the billed receivable, unbilled receivable and inventor y balances at December 31, 2005 |
| If the customer does not honor its commitment , additional provisions may be required, based upon the ultimate disposition o f the machines |
| THE RESULTS OF LYNCH SYSTEMS &apos OPERATIONS ARE SUBJECT TO FLUCTUATIONS IN TH E AVAILABILITY AND COST OF STEEL USED TO MANUFACTURE GLASS FORMING EQUIPMENT Lynch Systems uses large amounts of steel to manufacture its glass formin g equipment |
| The price of steel has risen substantially and demand for steel i s very high |
| Lynch Systems has only been able to pass some of the increased cost s to its customers |
| As a result, Lynch Systems &apos profit margins on glass formin g equipment have decreased |
| If the price of and demand for steel continues t o rise, our profit margins will continue to decrease |
| LYNCH SYSTEMS MAY BE UNABLE TO PROTECT ITS INTELLECTUAL PROPERTY The success of Lynch Systems &apos business depends, in part, upon its abilit y to protect trade secrets, designs, drawings and patents, obtain or licens e patents and operate without infringing on the intellectual property rights o f others |
| Lynch Systems relies on a combination of trade secrets, designs , drawings, patents, nondisclosure agreements and technical measures to protec t its proprietary rights in its products and technology |
| The steps taken by Lync h Systems in this regard may not be adequate to prevent misappropriation of it s technology |
| In addition, the laws of some foreign countries in which Lync h Systems operates do not protect its proprietary rights to the same extent as d o the laws of the United States |
| Although Lynch Systems continues to evaluate an d implement protective measures, we cannot assure you that these efforts will b e successful |
| Lynch Systems &apos inability to protect its intellectual property right s could diminish or eliminate the competitive advantages that it derives from it s technology, cause Lynch Systems to lose sales or otherwise harm its business |
| When used in this discussio n and throughout this document, words, such as "e intends, "e "e plans, "e "e estimates, "e "e believes, "e "e anticipates "e and "e expects "e or similar expressions are intended t o identify forward-looking statements |
| These statements are based on the Company &apos s current plans and expectations and involve risks and uncertainties, over whic h the Company has no control, that could cause actual future activities an d results of operations to be materially different from those set forth in th e forward-looking statements |
| Important factors that could cause actual futur e activities and operating results to differ include fluctuating demand fo r capital goods such as large glass presses, delay in the recovery of demand fo r components used by telecommunications infrastructure manufacturers, and exposur e to foreign economies |
| Important information regarding risks and uncertainties i s also set forth elsewhere in this document, including in Item 7 |
| "e Management &apos s Discussion and Analysis of Financial Condition and Results of Operations "e |
| Readers are cautioned not to place undue reliance on these forward-lookin g statements, which speak only as of the date hereof |
| The Company undertakes n o 15 obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise |
| All subsequent written o r oral forward-looking statements attributable to the Company or persons acting o n its behalf are expressly qualified in their entirety by these cautionar y statements |
| Readers are also urged to carefully review and consider the variou s disclosures made by the Company, in this document, as well as the Company &apos s periodic reports on Forms 10-K, 10-Q and 8-K, filed with the Securities an d Exchange Commission ( "e SEC "e ) |
| The Company makes available, free of charge, its annual report on For m 10-K, Quarterly Reports on Form 10-Q, and current reports, if any, on Form 8-K The Company also makes this information available on its websit e WWWLYNCHCORPCOM ---------------------------------------------- |