Dish Network 2007 Annual Report Download - page 36

Table of Contents
In addition, we may incur substantial additional debt in the future. The terms of the indentures relating to our senior notes permit us to incur
additional debt. If new debt is added to our current debt levels, the risks we now face could intensify.
We may need additional capital, which may not be available, in order to continue growing, to increase earnings and to make payments on
our debt.
Our ability to increase earnings and to make interest and principal payments on our debt will depend in part on our ability to continue growing
our business by maintaining and increasing our subscriber base. This may require significant additional capital that may not be available to us.
Funds necessary to meet subscriber acquisition and retention costs are expected to be satisfied from existing cash and marketable investment
securities balances and cash generated from operations to the extent available. We may, however, decide to raise additional capital in the future
to meet these requirements. There can be no assurance that additional financing will be available on acceptable terms, or at all, if needed in the
future.
In addition to our DBS business plan, we have contracts to construct, and conditional licenses and pending FCC applications for, a number of
FSS Ku-band, Ka-band and extended Ku-band satellites. We may need to raise additional capital to construct, launch, and insure satellites and
complete these systems and other satellites we may in the future apply to operate. We also periodically evaluate various strategic initiatives, the
pursuit of which also could require us to raise significant additional capital. There can be no assurance that additional financing will be
available on acceptable terms, or at all.
We also have substantial satellite-related payment obligations under our various satellite service agreements.
We may be unable to manage rapidly expanding operations.
If we are unable to manage our growth effectively, it could have a material adverse effect on our business, financial condition and results of
operations. To manage our growth effectively, we must, among other things, continue to develop our internal and external sales forces,
installation capability, customer service operations and information systems, and maintain our relationships with third party vendors. We also
need to continue to expand, train and manage our employee base, and our management personnel must assume even greater levels of
responsibility. If we are unable to continue to manage growth effectively, we may experience a decrease in subscriber growth and an increase
in churn, which could have a material adverse effect on our business, financial condition and results of operations.
We cannot be certain that we will sustain profitability.
Due to the substantial expenditures necessary to complete construction, launch and deployment of our DBS system and to obtain and service
DISH Network customers, we have in the past sustained significant losses. If we do not have sufficient income or other sources of cash, our
ability to service our debt and pay our other obligations could be affected. While we had net income of $608.3 million, $1.515 billion and
$214.8 million for the years ended December 31, 2006, 2005 and 2004, respectively, we may not be able to sustain this profitability.
Improvements in our results of operations will depend largely upon our ability to increase our customer base while maintaining our price
structure, effectively managing our costs and controlling churn. We cannot assure you that we will be effective with regard to these matters.
We depend on few manufacturers, and in some cases a single manufacturer, for many components of consumer premises equipment; we
may be adversely affected by product shortages.
We depend on relatively few sources, and in some cases a single source, for many components of the consumer premises equipment that we
provide to subscribers in order to deliver our digital television services. Product shortages and resulting installation delays could cause us to
lose potential future subscribers to our DISH Network service.
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