This excerpt taken from the COO 10-Q filed Sep 10, 2007.
There have been no material changes in the Companys risk factors from those disclosed in our Annual Report on Form 10-K for fiscal year ended October 31, 2006, as supplemented or modified under Risk Factors in our Quarterly Reports on Form 10-Q for the quarterly periods ended January 31, 2007 and April 30, 2007.
This excerpt taken from the COO 10-Q filed Jun 8, 2007.
Our business faces significant risks. These risks include those described below and may include additional risks and uncertainties not presently known to us or that we currently deem immaterial. Our business, financial condition and results of operations could be materially adversely affected by any of these risks, and the trading prices of our common stock or convertible debentures could decline. The risk factors set forth below supplement or modify the Risk Factors in our Annual Report on Form 10-K for fiscal year ended October 31, 2006, to reflect changes since that filing. These risks should be read in conjunction with the other information in this report, the 2006 Annual Report on Form 10-K and the January 31, 2007, Quarterly Report on Form 10-Q.
Risks Relating to Our Business
If we do not retain our key personnel and attract and retain other highly skilled employees, our business could suffer.
If we fail to recruit and retain the necessary personnel, our business and our ability to obtain new customers, develop new products and provide acceptable levels of customer service could suffer. The success of our business is heavily dependent on the leadership of our key management personnel. Our success also depends on our ability to recruit, retain and motivate highly skilled sales, marketing and engineering personnel. Competition for these persons in our industry is intense, and we may not be able to successfully recruit, train or retain qualified personnel.
On April 3, 2007, we announced that our current chief executive officer, A. Thomas Bender, had expressed his desire to relinquish his role as chief executive officer by the end of 2007. Our Board of Directors has been engaged in a succession planning process and is considering both internal and external candidates for chief executive officer in its search process. Though we hope to appoint a qualified candidate in the near term, no assurance can be given that we will be able to retain a suitable chief executive officer. If we are unsuccessful in replacing Mr. Bender with an individual with the required level of experience and expertise in a timely manner, our operations and business strategy could be materially and adversely affected. Additionally, this change in our management may be disruptive to our business, and, during the transition period, there may be uncertainty among investors, vendors, customers, rating agencies, employees and others concerning our future direction and performance.
We face risks arising from the restructuring of our CVI operations.
We have undertaken initiatives to restructure CVIs business operations by reorganizing certain of CVIs reporting chains and centralizing certain management functions to our corporate headquarters in Pleasanton. While the restructuring is intended to have long-term benefits for us, in the shorter term we may experience management distractions, reduced employee productivity, operational disruptions and other difficulties as a result of the implementation of the restructuring, which in turn may affect our revenue in the future. We may also experience delays or greater than expected costs in implementing our restructuring program, and our efforts may fail to achieve the desired improvements in the management of our operations.
Concerns with the safety of certain contact lens solutions resulting in the voluntary recall of such products may adversely affect the contact lens industry in general.
On May 15, 2006, Bausch & Lomb announced a worldwide voluntary recall of ReNu with MoistureLoc following a governmental investigation into an increase in fungal infections among contact lens wearers in the United States and certain Asian markets. On May 25, 2007, Advanced Medical Optics announced a worldwide voluntary recall of Complete®MoisturePlus based on CDC data linking the product to an increased risk of acanthamoeba keratitis, a rare, but serious, infection of the cornea. While our contact lens products have not been associated with either of these recalls, these recalls and others, or similar safety issues, may damage consumer confidence in the safety of contact lens usage which may negatively impact the growth of the contact lens market in general or cause consumers to try alternative vision correcting technologies. An overall slowdown in the growth of the worldwide contact lens market could adversely affect our ability to continue to increase revenues thereby having a material adverse impact on our business, financial condition and results of operations.