SWHC » Topics » The failure to manage our growth could adversely affect our operations.

These excerpts taken from the SWHC 10-K filed Jun 30, 2009.
The failure to manage our growth could adversely affect our operations.
 
To remain competitive, we must make significant investments in systems, equipment, and facilities. In addition, we may commit significant funds to enhance our sales, marketing, and licensing efforts in order to expand our business. As a result of the increase in fixed costs and operating expenses, our failure to increase sufficiently our net sales to offset these increased costs would adversely affect our operating results.
 
The failure to manage our growth effectively could adversely affect our operations. We have substantially increased the number of our manufacturing and design programs and plan to expand further the number and diversity of our programs in the future. Our ability to manage our planned growth effectively will require us to
 
  •  enhance our operational, financial, and management systems;
 
  •  enhance our facilities and expand our equipment; and
 
  •  successfully hire, train, and motivate additional employees, including additional personnel for our sales, marketing, and licensing efforts.
 
The expansion and diversification of our products and customer base may result in increases in our overhead and selling expenses. We also may be required to increase staffing and other expenses as well as our expenditures on capital equipment and leasehold improvements in order to meet the demand for our products. Any increase in expenditures in anticipation of future sales that do not materialize would adversely affect our profitability.
 
From time to time, we may seek additional equity or debt financing to provide funds for the expansion of our business. We cannot predict the timing or amount of any such financing requirements at this time. If such financing is not available on satisfactory terms, we may be unable to expand our business or to develop new business at the rate desired and our operating results may suffer. Debt financing increases expenses and must be repaid regardless of operating results. Equity financing could result in additional dilution to existing stockholders.
 
The
failure to manage our growth could adversely affect our
operations.



 



To remain competitive, we must make significant investments in
systems, equipment, and facilities. In addition, we may commit
significant funds to enhance our sales, marketing, and licensing
efforts in order to expand our business. As a result of the
increase in fixed costs and operating expenses, our failure to
increase sufficiently our net sales to offset these increased
costs would adversely affect our operating results.


 



The failure to manage our growth effectively could adversely
affect our operations. We have substantially increased the
number of our manufacturing and design programs and plan to
expand further the number and diversity of our programs in the
future. Our ability to manage our planned growth effectively
will require us to


 




































  • 

enhance our operational, financial, and management systems;
 
  • 

enhance our facilities and expand our equipment; and
 
  • 

successfully hire, train, and motivate additional employees,
including additional personnel for our sales, marketing, and
licensing efforts.


 



The expansion and diversification of our products and customer
base may result in increases in our overhead and selling
expenses. We also may be required to increase staffing and other
expenses as well as our expenditures on capital equipment and
leasehold improvements in order to meet the demand for our
products. Any increase in expenditures in anticipation of future
sales that do not materialize would adversely affect our
profitability.


 



From time to time, we may seek additional equity or debt
financing to provide funds for the expansion of our business. We
cannot predict the timing or amount of any such financing
requirements at this time. If such financing is not available on
satisfactory terms, we may be unable to expand our business or
to develop new business at the rate desired and our operating
results may suffer. Debt financing increases expenses and must
be repaid regardless of operating results. Equity financing
could result in additional dilution to existing stockholders.


 




EXCERPTS ON THIS PAGE:

10-K (2 sections)
Jun 30, 2009
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