MCZ » Topics » Acquired companies can be difficult to integrate, disrupt our business and adversely affect our operating results. The benefits we anticipate may not be realized in the manner anticipated.

This excerpt taken from the MCZ 10-K filed Jun 26, 2009.
Acquired companies can be difficult to integrate, disrupt our business and adversely affect our operating results. The benefits we anticipate may not be realized in the manner anticipated.
 
The Company has made past acquisitions and may make future acquisitions with the expectation that these acquisitions would result in various benefits including, among other things, enhanced revenue and profits, greater market presence and development, particularly in Europe, and enhancements to our product portfolio and customer base. We may not realize these benefits, as rapidly as, or to the extent, anticipated by our management. Operations and costs incurred in connection with the integration of acquired companies with our other operating subsidiaries also could have an adverse effect on our business, financial condition and operating results. If these risks materialize, our stock price could be materially adversely affected.
 
Acquisitions involve numerous risks, including:
 
  •  difficulties in integrating operations, technologies, services and personnel of the acquired companies;
 
  •  potential loss of customers of the acquired companies;
 
  •  diversion of financial and management resources from existing operations;
 
  •  potential loss of key employees of the acquired companies;
 
  •  integrating personnel with diverse business and cultural backgrounds;
 
  •  preserving the development, distribution, marketing and other important relationships of the companies;
 
  •  assumption of liabilities of the acquired companies; and
 
  •  inability to generate sufficient revenue and cost savings to offset acquisition costs.
 
Our acquisitions may also cause us to:
 
  •  assume certain liabilities;
 
  •  incur additional debt, such as the debt we incurred to fund the acquisitions of Joytech and Saitek;
 
  •  make large and immediate one-time write-offs and restructuring and other related expenses;


19


Table of Contents

 
  •  become subject to intellectual property or other litigation; and
 
  •  create goodwill or other intangible assets that could result in significant impairment charges and/or amortization expense.
 
As a result, if we fail to properly evaluate, execute and integrate acquisitions, our business and prospects may be seriously harmed.
 
This excerpt taken from the MCZ 10-K filed Jun 30, 2008.
Acquired companies can be difficult to integrate, disrupt our business and adversely affect our operating results. The benefits we anticipate may not be realized in the manner anticipated.
 
We acquired the Joytech assets in September 2007 and Saitek operations in November 2007 with the expectation that these acquisitions would result in various benefits including, among other things, enhanced revenue and profits, greater market presence and development, particularly in Europe, and enhancements to our product portfolio and customer base. We may not realize these benefits, as rapidly as, or to the extent, anticipated by our management. Operations and costs incurred in connection with the integration of Joytech and Saitek with our other operating subsidiaries also could have an adverse effect on our business, financial condition and operating results. If these risks materialize, our stock price could be materially adversely affected. The Saitek purchase agreement has a working capital adjustment provision which is contingent on the completion of a final balance sheet and subject to agreement by both parties. This adjustment is still being negotiated. Our acquisitions of Joytech and Saitek, as with all acquisitions, involve numerous risks, including:
 
  •  difficulties in integrating operations, technologies, services and personnel of the acquired companies;
 
  •  potential loss of customers of the acquired companies;
 
  •  diversion of financial and management resources from existing operations;
 
  •  potential loss of key employees of the acquired companies;
 
  •  integrating personnel with diverse business and cultural backgrounds;
 
  •  preserving the development, distribution, marketing and other important relationships of the companies;
 
  •  assumption of liabilities of the acquired companies; and
 
  •  inability to generate sufficient revenue and cost savings to offset acquisition costs.
 
Our acquisitions may also cause us to:
 
  •  assume certain liabilities;
 
  •  incur additional debt, such as the debt we incurred to fund the acquisitions of Joytech and Saitek;


18


Table of Contents

 
  •  make large and immediate one-time write-offs and restructuring and other related expenses;
 
  •  become subject to intellectual property or other litigation; and
 
  •  create goodwill or other intangible assets that could result in significant impairment charges and/or amortization expense.
 
As a result, if we fail to properly evaluate, execute and integrate acquisitions such as Saitek and Joytech, our business and prospects may be seriously harmed.
 

EXCERPTS ON THIS PAGE:

10-K
Jun 26, 2009
10-K
Jun 30, 2008
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki