The announcement and pendency of the Merger may have an adverse effect on our business, financial condition, operating results and cash flows.
The failure to complete the Merger in a timely manner or at all could negatively impact the market price of our common stock as well as adversely affect our business, financial condition, operating results and cash flows.
The Merger Agreement contains provisions that could discourage or deter a potential competing acquirer that might be willing to pay more to effect an acquisition transaction with us.
Litigation challenging the Merger Agreement may prevent the Merger from being consummated at all or within the expected timeframe and may result in substantial costs to us.
We will incur substantial transaction fees and costs in connection with the Merger.
RISKS RELATED TO OUR BUSINESS AND INDUSTRY
A majority of our revenue comes from a relatively small number of customers. If we lose any of these customers, our revenue could decline significantly.
Our industry is very competitive and we may not be successful if we fail to compete effectively.
We experience variability in our operating results, which could increase the volatility of the price of our common stock.
We are dependent upon the industry sectors we service, which produce electronic products that are technologically advanced with short life cycles, and our business could be negatively impacted by economic slowdowns in these sectors.
We may encounter difficulties with acquisitions, including the risks associated with the integration of acquired businesses, such as MC Assembly, and divestitures, which could harm our business.
Disruptions to our information technology systems, including cyber security incidents, losses of data or outages, could have a material adverse effect on our business, operations and financial results.
If the products we manufacture are defective, demand for our services may decline and we may be exposed to product liability and product warranty claims.
We depend on our key personnel and skilled employees and our business could suffer if we are unable to attract and retain key personnel and skilled employees.
We are subject to a variety of governmental regulations related to the environment, health and safety and defense and our failure to comply with such current and future governmental regulations could have a material adverse effect on our business, financial condition and results of operations.
Our customers may cancel their orders, change production quantities or locations, or delay production, and the inherent difficulties involved in responding to these demands could harm our business.
Our restructuring activities will increase our expenses, may not be successful, and may adversely impact employee hiring and retention. Also, we have incurred other substantial restructuring charges in the past and we may continue to in the future.
Our design and manufacturing processes and services may result in exposure to intellectual property infringement claims against our customers or us, which could harm our business.
From time to time, we are involved in various legal proceedings, which could result in unexpected expenditures of time and resources.
We may be required to recognize additional impairment charges.
Our financial results depend, in part, on our ability to perform on our U.S. government contracts, and changes in government defense spending and priorities could have consequences on our financial position, results of operations and business.
Government contracts are subject to significant procurement rules and regulations. Changes in such rules, regulations and business practice could negatively affect current programs and potential awards, and our business could be negatively affected if we fail to comply with any procurement rules and regulations.
We are subject to extensive regulation and audit by the Defense Contract Audit Agency.
Material weakness in our internal control could arise resulting in a reasonable possibility that a material misstatement of the company’s annual or interim financial statements would not be prevented or detected on a timely basis if these deficiencies are not remediated appropriately or timely.
As a manufacturer, we are particularly exposed to general economic conditions, which could have an adverse impact on our business, operating results and financial condition.
The effect of COVID-19 on our operations and the operations of our customers, suppliers and logistics providers has, and is expected to continue to have a material, adverse impact on our financial condition and results of operations.
We are exposed to fluctuations in currencies against the U.S. dollar, which could have a material adverse effect on our business and financial results.
We depend on a limited number of suppliers for components that are critical to our manufacturing processes and shortages or price fluctuations of component parts specified by our customers could delay product shipment and affect our profitability.
Risks particular to our international manufacturing operations and our operations as a global company could each adversely affect our overall results.
Tariffs imposed by the United States and those imposed in response by other countries, as well as rapidly changing trade relations, could have a material adverse effect on our business and results of operations.
RISKS RELATED TO OUR CAPITAL STRUCTURE
Our indebtedness could adversely affect our financial health and severely limit our ability to plan for or respond to changes in our business.
We face significant restrictions on our ability to operate our business as a result of the covenant restrictions under our Credit Facilities.
Our indebtedness could adversely affect our financial condition and prevent us from fulfilling our debt obligations and may otherwise restrict our activities.
Despite our current level of indebtedness, we may incur more debt and undertake additional obligations. Incurring such debt or undertaking such additional obligations could increase the risks to our financial condition.
To service our significant indebtedness, we will require cash and we may not be able to generate sufficient cash flow from operations to satisfy these obligations or to refinance these obligations on acceptable terms, or at all.
Changes in the method of determining LIBOR, or the replacement of LIBOR with an alternative reference rate, may adversely affect interest expense related to outstanding debt.
RISKS RELATED TO TAX LOSS UTILIZATION AND TAX REGULATION
Our ability to recognize tax benefits on our existing U.S. net operating loss position may be limited.
There may be adverse impact resulting from government tax reform on the Company's tax returns and consolidated financial statements.
RISKS RELATED TO OWNERSHIP OF OUR COMMON STOCK
Our common stock price may be volatile or may decline regardless of our operating performance.
Our principal stockholders exercise a considerable degree of control over our Company.
Sales of a significant number of shares of our common stock in the public markets, including sales by our directors or executive officers and/or the holders of our warrants upon the exercise of such warrants, or the perception that such sales could occur, could depress the market price of our common stock.
Our amended and restated certificate of incorporation, amended and restated by-laws and Delaware law contain provisions that could discourage a third party from acquiring us and consequently decrease the market value of an investment in our stock.
We may issue shares of preferred stock in the future, which could make it difficult for another company to acquire us or could otherwise adversely affect holders of our common stock, which could depress the price of our common stock.
If securities analysts do not publish research or reports about our Company, or if they issue unfavorable commentary about us or our industry or downgrade our common stock, the price of our common stock could decline.
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