Redbox 2003 Annual Report Download - page 14

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• announcements regarding the establishment, modification or termination of relationships regarding the
development of new products and services,
• announcements of technological innovations or new products or services by us or our competitors,
• industry developments, and
• economic or other external factors.
In addition, the securities markets have experienced significant price and volume fluctuations that are
unrelated to the operating performance of particular companies. These market fluctuations may also seriously
harm the market price of our common stock.
We depend upon third-party manufacturers, suppliers and service providers. We do not currently conduct
manufacturing operations and depend, and will continue to depend, on outside parties to manufacture Coinstar
units and key components of these units. We intend to continue to expand our installed base both in North
America and in the United Kingdom and such expansion may be limited by the manufacturing capacity of our
third-party manufacturers and suppliers. Although we expect that our current contract manufacturers will be able
to produce sufficient units to meet projected demand, they may not be able to meet our manufacturing needs in a
satisfactory and timely manner. If there is an unanticipated increase in demand for Coinstar unit installations, we
may be unable to meet such demand due to manufacturing constraints.
We obtain some key hardware components used in the Coinstar units from a limited number of suppliers.
We may be unable to continue to obtain an adequate supply of these components in a timely manner or, if
necessary, from alternative sources. If we are unable to obtain sufficient quantities of components or to locate
alternative sources of supply on a timely basis, we may experience delays in installing or maintaining Coinstar
units, either of which could seriously harm our business, financial condition and results of operations.
We rely on third-party service providers for substantial support and service efforts that we currently do not
provide directly. In particular, we contract with armored car carriers and other third-party providers to arrange for
pick-up, processing and deposit of coins. We generally contract with a single transportation provider and coin
processor to service a particular region and either party generally can terminate the contracts with advance notice
ranging from 30 to 90 days. We do not currently have nor do we expect to have in the foreseeable future the
internal capability to provide back-up coin processing service in the event of a sudden disruption in service from
a commercial coin processor. Any failure by us to maintain our existing coin processing relationships or to
establish new relationships on a timely basis or on acceptable terms would harm our business, financial condition
and results of operations.
We depend upon key personnel. Our performance is substantially dependent on the continued services of
certain executive officers and key employees. Our long-term success will depend on our ability to retain and
motivate highly skilled personnel. Competition for such personnel is intense. Recruiting qualified personnel can
be a time-consuming and lengthy process, and we may experience difficulties in the future which could lead to
certain positions being unfilled for a period of time. The inability to attract and retain essential technical and
managerial personnel could seriously harm our business, financial condition and results of operations.
Our business is subject to federal, state, local and foreign laws and government regulation. Our current
business is subject to federal, state, local and foreign laws and government regulation, including government
regulation relating to coins, consumer protection, vehicle safety, access to machines in public places, charitable
fundraising, the transfer of money or things of value, and sweepstakes and contests. Given the unique nature of
our business and new products and services we may develop in the future, the application of various laws and
regulations to our business is or in the future may be uncertain. The application of existing laws and regulations,
changes in or enactment of new laws and regulations that apply or may in the future apply to our current or future
products or services, or changes in governmental authorities’ interpretation of the application of various
government regulations to our business, may materially affect our business in the future.
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