News Column

CUBIC CORP /DE/ - 10-Q - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

May 12, 2014

CONDITION AND RESULTS OF OPERATIONS

December 31, 2013



We are a leading international provider of cost-effective systems and solutions that address the transportation and global defense markets' most pressing and demanding requirements. We are engaged in the design, development, manufacture, integration, and sustainment of advanced technology systems and products. We also provide a broad range of engineering, training, technical, logistic, and information technology services. We serve the needs of various federal and regional government agencies in the U.S. and other allied nations around the world with products and services that have both defense and civil applications. Our main areas of focus are in transportation payment and information systems, defense, intelligence, homeland security, and information technology, including cyber security.

We operate in three reportable business segments: Cubic Transportation Systems (CTS), Mission Support Services (MSS) and Cubic Defense Systems (CDS). We organize our business segments based on the nature of the products and services offered.

CTS is a systems integrator that develops and provides fare collection infrastructure, services and technology, traffic management and road enforcement systems and services, and real-time passenger information systems and services for transportation authorities and operators worldwide. We offer fare collection devices, software systems and multiagency, multimodal transportation integration technologies, as well as a full suite of operational services that help agencies efficiently collect fares, manage operations, reduce revenue leakage and make transportation more convenient. We provide a wide range of services for transportation authorities in major markets worldwide, including computer hosting services, call center and web services, payment media issuance and distribution services, retail point of sale network management, payment processing and enforcement, financial clearing and settlement, software application support and outsourced asset operations and maintenance.

MSS is a leading provider of highly specialized support services to the U.S. government and allied nations. Services provided include live, virtual and constructive training, real-world mission rehearsal exercises, professional military education, intelligence support, information technology, information assurance and related cyber support, development of military doctrine, consequence management, infrastructure protection and force protection, as well as support to field operations, and logistics.

CDS is focused on two primary lines of business: Training Systems and Secure Communications. CDS is a diversified supplier of live and virtual military training systems, and secure communication systems and products to the U.S. Department of Defense, other U.S. government agencies and allied nations. We design and manufacture instrumented range systems for fighter aircraft, armored vehicles and infantry force-on-force live training weapons effects simulations, laser-based tactical and communication systems, and precision gunnery solutions. Our secure communications products are aimed at intelligence, surveillance, asset tracking and search and rescue markets.

Consolidated Overview



Sales for the quarter ended December 31, 2013 decreased 2% to $307.1 million from $314.8 million last year. MSS sales decreased 13% compared to the first quarter of last year, while CTS sales and CDS sales increased 5% and 1%, respectively. The sales generated by businesses we acquired during 2014 and 2013 totaled $19.6 million for the three months ended December 31, 2013 and $0.5 million for the three months ended December 31, 2012. See the segment discussions following for further analysis of segment sales.

Operating income was $11.8 million in the first quarter compared to $20.5 million in the first quarter of last year, a decrease of 42%. CTS operating income decreased 80% and MSS operating income decreased 33% while CDS operating income increased by over 300% compared to the first quarter of last year. Businesses we acquired during 2014 and 2013 contributed operating loss of $1.0 million for the three months ended December 31, 2013 and an operating loss of $0.2 million for the three months ended December 31, 2012. Unallocated corporate and other costs for the first quarter of 2014 were $1.2 million compared to $0.4 million in 2013.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) decreased to $19.2 million in the quarter from $25.2 million in the first quarter of last year. The changes in Adjusted EBITDA for the quarter ended December 31, 2013 are primarily related to the changes in operating income for the corresponding periods. See below for a reconciliation of this non- GAAP metric to net income and an explanation of why we believe it to be an important measure of performance.

29



--------------------------------------------------------------------------------

Table of Contents

Net income attributable to Cubic for the first quarter of fiscal 2014 decreased to $8.4 million, or $0.31 cents per share, compared to $14.2 million, or $0.53 cents per share, last year. Net income decreased for the quarter primarily due to a decrease in operating income as well as an increase in other expense.

Our gross margin percentage on product sales increased to 29% in the first quarter of 2014 from 26% last year. The increase in gross margin percentages is primarily due to increased work on higher margin development contracts including a ground combat training system contract in the Far East and transportation contracts in the U.K. The increase in gross margin was partially offset by cost growth on a contract to design and build a transportation fare system in Vancouver.

Our gross margin percentage on service sales decreased to 13% in the first quarter of 2014 from 20% last year. The decrease in the gross margin percentages on services sales for the three-month period ended December 31, 2013 is primarily the result of increased costs of providing services on a transportation contract in Chicago. The quarter ended December 31, 2013 was the first full quarter subsequent to the inception of the provision of services under this contract. Revenue recognized on this contract is limited to billable amounts, which will be significantly less than costs incurred to provide these services until billable amounts increase as the contract progresses.

Selling, general and administrative (SG&A) expenses decreased in the first quarter of 2014 to $36.8 million compared to $40.9 million in 2013. As a percentage of sales, SG&A expenses were 12% for the first quarter of fiscal 2014 compared to 13% for the first quarter last year. This was primarily due to a return to normal bid and proposal cost levels compared to the first quarter in FY13, which experienced high levels of bid and proposal costs related to successful bids on several ground combat training systems contracts. Also, in the first quarter of 2013 we recognized $1.1 million of professional services related to the restatement of our financial statements for the year ended September 30, 2012 and previous periods. In the first quarter of 2013 SG&A expenses were reduced by $1.4 million related to proceeds from an insurance claim for losses that we incurred over the period from fiscal 2010 to fiscal 2012.

Company funded research and development expenditures, which relate to new defense and transportation technologies under development, decreased to $4.9 million for the first quarter compared to $5.8 million last year. Amortization of purchased intangibles increased for the first quarter of 2014 to $5.4 million compared to $3.6 million last year due to the amortization of intangible assets related to businesses acquired during 2013 and 2014.

We recorded a discrete tax benefit of approximately $0.4 million through the first quarter of fiscal 2014 largely related to the reversal of uncertain tax positions as a result of the expiration of a statute of limitations. We estimate our annual effective income tax rate for fiscal 2014 will be approximately 26%. The effective rate for fiscal 2014 could be affected by, among other factors, the mix of business between the U.S. and foreign jurisdictions, our ability to take advantage of available tax credits and audits of our records by taxing authorities.

Transportation Systems Segment (CTS)

Three Months Ended December 31, 2013 2012 (in millions) (As Restated) Transportation Systems Segment Sales $ 127.1 $ 121.2



Transportation Systems Segment Operating Income $ 3.1 $ 15.2

CTS sales increased 5% in the first quarter to $127.1 million compared to $121.2 million last year. During the quarter ended December 31, 2013, businesses acquired by CTS subsequent to December 31, 2012 contributed sales of $6.9 million for the three months ended December 31, 2013. During the quarter ended December 31, 2013, sales increased on a system development and services contract in Chicago, on system development contracts in the U.K., and on a transit system contract in New York. For the first quarter, CTS realized lower sales from a contract to design and build a system in Sydney and due to reduced work on a contract to design and build a system in Vancouver. These decreases reflect expected reductions in activity based on the stage of completion of these contracts for the quarter ended December 31, 2013 as compared to the quarter ended December 31, 2012. The average exchange rates between the prevailing currency in our foreign operations and the U.S. dollar resulted in a decrease in sales of $2.4 million for the first quarter compared to the same period last year.

30



--------------------------------------------------------------------------------

Table of Contents

CTS operating income decreased 80% in the first quarter to $3.1 million compared to $15.2 million last year. The quarter ended December 31, 2013 was the first full quarter subsequent to the inception of the provision of services on a contract in Chicago, Illinois. Revenue recognized on this contract is limited to billable amounts, which will be significantly less than costs incurred to provide these services until the billable amounts increase as the contract progresses. As a result, the operating loss from the Chicago contract in the quarter was $12.4 million. In addition, operating margins were lower on decreased sales and increases in estimated total costs for the development of systems in Sydney and Vancouver discussed above. Increases in estimated development costs for new rail ticketing technology for a customer in the U.K. and for the system we are developing in Vancouver also impacted operating income for the first quarter this year by $2.2 million and $5.2 million, respectively. The decrease in operating income for the quarter was partially offset by increased operating margins on other U.K. system development contracts. Businesses acquired by CTS subsequent to December 31, 2012 had an operating loss of $1.2 million for the three months ended December 31, 2013.The average exchange rates between the prevailing currency in our foreign operations and the U.S. dollar resulted in an increase in operating income of $0.4 million for the first quarter compared to the same period last year.

Mission Support Services Segment (MSS)

Three Months Ended December 31, 2013 2012 (in millions) (As Restated) Mission Support Services Segment Sales $ 99.2 $ 113.4 Mission Support Services Segment Operating Income $ 2.8 $ 4.2



MSS sales decreased 13% in the first quarter to $99.2 million compared to $113.4 million last year. Sales in the quarter were lower due in part to the U.S. government's shut down in October 2013 and reductions in spending. The decrease in sales was also caused by competitive pressures including the loss of a contract due to a lower bid by a competitor. The reductions were partially offset by growth in the Simulator Training business area. NEK, a Special Operation Forces training business acquired in December 2012 had sales of $10.7 million and $0.5 million for the three months ended December 31, 2013 and 2012, respectively. Absent the increase in sales from NEK, MSS sales would have decreased by 22% in the first quarter as compared to last year.

MSS operating income decreased 33% in the first quarter to $2.8 million compared to $4.2 million last year. The decreased operating income for the quarter resulted from the sales decreases described above operating income also decreased as a result of a focused investment we are making to increase our footprint in the Special Operations Forces market. NEK had an operating loss of $0.2 million for the three months ended December 31, 2013 compared to $0.5 million for the quarter ended December 31, 2012. The December 31, 2012 operating loss included $0.4 million of acquisition-related costs.

Defense Systems Segment (CDS)

Three Months Ended December 31, 2013 2012 (in millions) (As Restated) Defense Systems Segment Sales Training systems $ 70.0 $ 64.4 Secure communications 10.8 15.6 $ 80.8 $ 80.0 Defense Systems Segment Operating Income Training systems $ 6.6 $ 2.8 Secure communications 0.4 (1.3 ) Restructuring costs 0.1 - $ 7.1 $ 1.5 31



--------------------------------------------------------------------------------

Table of Contents Training Systems



Training systems sales increased 9% in the first quarter to $70.0 million compared to $64.4 million last year. Sales were higher on a new ground combat training system development contract in the Far East, and on tactical vehicle system development contracts. In addition, businesses acquired by CDS subsequent to December 31, 2012 contributed training system sales of $2.0 million for the three months ended December 31, 2013. These increased sales were partially offset by lower sales of air combat training systems for the quarter.

Operating income more than doubled in the first quarter to $6.6 million compared to $2.8 million last year due to increased sales from multiple deliveries of hardware for the ground combat training systems contracts noted above. Training system businesses acquired by CDS subsequent to December 31, 2012 had an operating loss of $0.1 million for the three months ended December 31, 2013. The increase in operating income for the quarter was partially offset by decreased operating income on lower sales of air combat training systems.

Secure Communications



Certain CDS product lines that were previously classified in an "Other" category have been reclassified into the "Secure Communications" category. Prior year financial information has been reclassified to conform to the current year presentation.

Secure communications sales decreased 31% in the first quarter to $10.8 million compared to $15.6 million last year. Sales were lower for data link and asset tracking products.

Operating income was $0.4 million in the first quarter compared to an operating loss of $1.3 million last year. In the first quarter of 2013, we experienced a $1.2 million cost increase on a U.S. government contract for data link products.

Backlog December 31, September 30, 2013 2013 (in millions) (As Restated) Total backlog Transportation Systems $ 1,457.3$ 1,526.4 Mission Support Services 576.5 626.7 Defense Systems: Training systems 530.3 457.8 Secure communications 36.5 35.7 Total Defense Systems 566.8 493.5 Total $ 2,600.6$ 2,646.6 Funded backlog Transportation Systems $ 1,457.3$ 1,526.4 Mission Support Services 195.8 221.0 Defense Systems: Training systems 530.3 457.8 Secure communications 36.5 35.7 Total Defense Systems 566.8 493.5 Total $ 2,219.9$ 2,240.9 32



--------------------------------------------------------------------------------

Table of Contents

Total backlog decreased $46.0 million from September 30, 2013 to December 31, 2013. Decreases in backlog for CTS and MSS were partially offset by an increase in backlog for CDS. Changes in exchange rates between the prevailing currency in our foreign operations and the U.S. dollar as of the end of the quarter decreased backlog by $6.7 million compared to September 30, 2013.

The difference between total backlog and funded backlog represents options under multiyear MSS service contracts. Funding for these contracts comes from annual operating budgets of the U.S. government and the options are normally exercised annually. Funded backlog includes unfilled firm orders for our products and services for which funding has been both authorized and appropriated by the customer (Congress, in the case of U.S. government agencies). Options for the purchase of additional systems or equipment are not included in backlog until exercised. In addition to the amounts identified above, we have been selected as a participant in or, in some cases, the sole contractor for several substantial indefinite delivery/ indefinite quantity (ID/IQ) contracts. ID/IQ contracts are not included in backlog until an order is received. In the past, many of the contracts we were awarded in MSS were long-term in nature, spanning periods of five to ten years. The U.S. Department of Defense now awards shorter-term contracts for the services we provide and increasingly relies upon ID/IQ contracts which can result in a lower backlog and/or lower funded backlog due to the shorter-term nature of Task Orders issued under these ID/IQ awards. We also have several service contracts in our transportation business that include contingent revenue provisions tied to meeting certain performance criteria. These variable revenues are also not included in the amounts identified above.

Adjusted EBITDA



Adjusted EBITDA represents net income attributable to Cubic before interest, taxes, non-operating income, goodwill impairment charges, depreciation and amortization. We believe that the presentation of Adjusted EBITDA included in this report provides useful information to investors with which to analyze our operating trends and performance and ability to service and incur debt. Also, Adjusted EBITDA is a factor we use in measuring our performance and compensating certain of our executives. Further, we believe Adjusted EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused by variations in capital structures (affecting net interest expense), taxation, the age and book depreciation of property, plant and equipment (affecting relative depreciation expense), goodwill impairment charges and non-operating expenses which may vary for different companies for reasons unrelated to operating performance. In addition, we believe that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in their evaluation of companies, many of which present an Adjusted EBITDA measure when reporting their results. Adjusted EBITDA is not a measurement of financial performance under U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income as a measure of performance. In addition, other companies may define Adjusted EBITDA differently and, as a result, our measure of Adjusted EBITDA may not be directly comparable to Adjusted EBITDA of other companies. Furthermore, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

Adjusted EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;

Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

Adjusted EBITDA does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt;

Adjusted EBITDA does not reflect our provision for income taxes, which may vary significantly from period to period; and

Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements.

Because of these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally. You are cautioned not to place undue reliance on Adjusted EBITDA.

33



--------------------------------------------------------------------------------

Table of Contents

The following table reconciles Adjusted EBITDA to net income attributable to Cubic, which we consider to be the most directly comparable GAAP financial measure to Adjusted EBITDA: Three Months Ended December 31, 2013 2012 (in thousands) (As Restated) Reconciliation: Net income attributable to Cubic $ 8,388$ 14,241



Add:

Provision for income taxes 2,439 5,869 Interest expense, net 616 428 Other expense (income), net 346 (102 ) Noncontrolling interest in income of VIE 41 73 Depreciation and amortization 7,377 4,718 ADJUSTED EBITDA $ 19,207$ 25,227



Liquidity and Capital Resources

Operating activities used cash of $39.8 million for the first quarter of the fiscal year. Increases in accounts receivable, inventories, and long-term capitalized contract costs and decreases in accounts payable contributed to the use of cash. Long-term capitalized contract costs consist of costs incurred on a contract to develop and manufacture a transportation fare system for a customer for which revenue recognition did not begin until the customer began operating the system in the fourth quarter of 2013. These capitalized costs are being amortized into cost of sales based upon the ratio of revenue recorded during the period compared to the revenue expected to be recognized over the term of the contract. The growth in inventory relates primarily to air and ground combat training systems being built for customer orders for which revenue and costs will be recorded upon delivery. The growth in accounts receivable primarily related to several large on-going contracts we worked on during the first quarter of 2014, including transportation systems contracts in Australia and the U.K. Negative cash flows on these contracts at this stage of their completion is in accordance with contract terms. Contract terms, including payment terms on our long-term development contracts, are customized for each contract based upon negotiations with the respective customer. The customized payment terms on long-term development projects also often include payment milestones based upon such items as the delivery of components of systems, meeting specific contractual requirements in the contracts, or other events. These milestone payments can vary significantly based upon the negotiated terms of the contracts. In the first quarter of 2014, much of the growth in the unbilled accounts receivable was based upon when we are entitled to receive milestone payments.

CTS and CDS segments contributed to the use of cash from operating activities, while MSS provided cash from operating activities.

Investing activities for the three-month period included $69.0 million of cash paid related to the acquisition of Intelligent Transport Management Solutions Limited (ITMS) and capital expenditures of $4.9 million. Financing activities for the three-month period consisted of the receipt of proceeds of $20.0 million from short-term borrowings and a payment of $0.7 million related to the acquisition of NEK for contingent consideration.

A change in exchange rates between foreign currencies, primarily between the Australian dollar and the U. S. dollar and between the British Pound and the U.S. dollar, resulted in an increase of $12.0 million to our cash balance as of December 31, 2013 compared to September 30, 2013, and an increase in Accumulated Other Comprehensive Income of $9.4 million during the three-month period.

We have a committed revolving credit agreement with a group of financial institutions in the amount of $200.0 million that expires in May 2017 (Revolving Credit Agreement). The available line of credit on the Revolving Credit Agreement is reduced by any letters of credit issued under the agreement. As of December 31, 2013, there were borrowings totaling $20.0 million under this agreement. Any borrowings under the Revolving Credit Agreement bear interest at a variable rate. At December 31, 2013 there were letters of credit outstanding under the Revolving Credit Agreement totaling $20.9 million, which reduce the available line of credit to $159.1 million.

We have a secured letter of credit facility agreement with a bank (Secured Letter of Credit Facility) that has no expiration date and is cancellable by us at any time upon the completion of certain conditions to the satisfaction of the bank. At December 31, 2013, there were letters of credit outstanding under this agreement of $60.9 million. In support of the Secured Letter of Credit Facility, we placed $68.9 million of our cash on deposit in the U.K. as collateral in a restricted account with the bank providing the facility. We are

34



--------------------------------------------------------------------------------

Table of Contents

required to leave the cash in the restricted account so long as the bank continues to maintain associated letters of credit under the facility. The maximum amount of letters of credit currently allowed by the facility is $62.7 million, and any increase above this amount would require bank approval and additional restricted funds to be placed on deposit. We may choose at any time to terminate the facility and move the associated letters of credit to another credit facility. Letters of credit outstanding under the Secured Letter of Credit Facility do not reduce the available line of credit available under the Revolving Credit Agreement.

In March 2013, we entered into a note purchase and private shelf agreement pursuant to which we issued $100.0 million of senior unsecured notes, bearing interest at a rate of 3.35% and maturing on March 12, 2025. Interest on these notes is due semi-annually and principal payments are due from 2021 through 2025. In addition, pursuant to the agreement, we may from time to time issue and sell, and the purchasers may in their sole discretion purchase, within the next three years, additional senior notes in aggregate principal amount of up to $25.0 million that will have terms, including interest rate, as we and the purchasers may agree upon at the time of issuance.

As of December 31, 2013, $89.6 million of the $121.4 million of our cash and cash equivalents was held by our foreign subsidiaries. If these funds are needed for our operations in the U.S., we would be required to accrue and pay U.S. taxes to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations.

Our financial condition remains strong with working capital of $440.3 million and a current ratio of 2.6 to 1 at December 31, 2013. We expect that cash on hand, cash flows from operations, and our unused lines of credit will be adequate to meet our liquidity requirements for the foreseeable future.

Critical Accounting Policies, Estimates and Judgments

Our financial statements are prepared in accordance with accounting principles that are generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We continually evaluate our estimates and judgments, the most critical of which are those related to revenue recognition, income taxes, valuation of goodwill, purchased intangibles, accounting for business combinations, and pension costs. We base our estimates and judgments on historical experience and other factors that we believe to be reasonable under the circumstances. Materially different results can occur as circumstances change and additional information becomes known.

Besides the estimates identified above that are considered critical, we make many other accounting estimates in preparing our financial statements and related disclosures. All estimates, whether or not deemed critical affect reported amounts of assets, liabilities, revenues and expenses, as well as disclosures of contingent assets and liabilities. These estimates and judgments are also based on historical experience and other factors that are believed to be reasonable under the circumstances. Materially different results can occur as circumstances change and additional information becomes known, even for estimates and judgments that are not deemed critical.

For further information, refer to "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies, Estimates and Judgments" and the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K/A for the year ended September 30, 2013 filed concurrently herewith.

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING INFORMATION



This report, including the documents incorporated by reference herein, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor created by such Act. Any statements about our expectations, beliefs, plans, objectives, assumptions, future events or our future financial and/or operating performance are not historical and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "may," "will," "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "believe," "intend," "predict," "potential," "opportunity" and similar words or phrases or the negatives of these words or phrases. These forward-looking statements involve risks, estimates, assumptions and uncertainties, including those discussed in "Part I - Item 1A. Risk Factors" in our Annual Report on Form 10-K/A for the year ended September 30, 2013 filed concurrently herewith, and throughout this report that could cause actual results to differ materially from those expressed in these statements. Such risks, estimates, assumptions and uncertainties include, among others:

unanticipated issues related to the restatement of our financial statements; 35



--------------------------------------------------------------------------------

Table of Contents

our ability to develop and implement new processes and procedures to remediate the material weaknesses that exist in our internal control over financial reporting;

our dependence on U.S. and foreign government contracts;



delays in approving U.S. and foreign government budgets and cuts in U.S. and foreign government defense expenditures;

the ability of certain government agencies to unilaterally terminate or modify our contracts with them;

our ability to successfully integrate new companies into our business and to properly assess the effects of such integration on our financial condition;

the U.S. government's increased emphasis on awarding contracts to small businesses, and our ability to retain existing contracts or win new contracts under competitive bidding processes;

negative audits by the U.S. government;



the effects of politics and economic conditions on negotiations and business dealings in the various countries in which we do business or intend to do business;

competition and technology changes in the defense and transportation industries;

our ability to accurately estimate the time and resources necessary to satisfy obligations under our contracts;

the effect of adverse regulatory changes on our ability to sell products and services;

our ability to identify, attract and retain qualified employees;



business disruptions due to cyber security threats, physical threats, terrorist acts, acts of nature and public health crises;

our involvement in litigation, including litigation related to patents, proprietary rights and employee misconduct;

our reliance on subcontractors and on a limited number of third parties to manufacture and supply our products;

our ability to comply with our development contracts and to successfully develop, introduce and sell new products, systems and services in current and future markets;

defects in, or a lack of adequate coverage by insurance or indemnity for, our products and systems;

changes in U.S. and foreign tax laws, exchange rates or our economic assumptions regarding our pension plans; and

other factors discussed elsewhere in this report.



Because the risks, estimates, assumptions and uncertainties referred to above could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking statements. In addition, past financial and/or operating performance is not necessarily a reliable indicator of future performance and you should not use our historical performance to anticipate results or future period trends. Further, any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict which factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.


For more stories covering the world of technology, please see HispanicBusiness' Tech Channel



Source: Edgar Glimpses