Audiovox 2008 Annual Report Download - page 14

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Employees
As of February 29, 2008, we employed approximately 1,000 people worldwide. We consider our relations with employees to be good
and no employees are covered by collective bargaining agreements.
Item 1A-Risk Factors
We have identified certain risk factors that apply to us. You should carefully consider each of the following risk factors and all of the
other information included or incorporated by reference in this Form 10-K. If any of these risks, or other risks not presently known to
us or that we currently believe not to be significant, develop into actual events, then our business, financial condition, liquidity, or
results of operations could be adversely affected. If that happens, the market price of our common stock would likely decline, and you
may lose all or part of your investment.
The asset purchase agreement with UTSI exposes the Company to contingent liabilities.
Under the asset purchase agreement for the sale of the Cellular business to UTSI we agreed to indemnify UTSI for any breach or
violation of ACC and its representations, warranties and covenants contained in the asset purchase agreement and for other matters,
subject to certain limitations. Significant indemnification claims by UTSI could have a material adverse effect on our financial
condition and results of operations.
Our success will depend on a less diversified line of business.
Currently, we generate substantially all of our sales from the Consumer and Mobile Electronics and Accessories businesses. We
cannot assure you that we can grow the revenues of our Electronics and Accessories businesses or maintain profitability. As a result,
the Company's revenues and profitability will depend on our ability to maintain and generate additional customers and develop new
products. A reduction in demand for our existing products and services would have a material adverse effect on our business. The
sustainability of current levels of our Electronics and Accessories businesses and the future growth of such revenues, if any, will
depend on, among other factors:
•the overall performance of the economy and discretionary consumer spending,
•competition within key markets,
•customer acceptance of newly developed products and services, and
•the demand for other products and services.
11
Source: AUDIOVOX CORP, 10-K, May 14, 2008