cash and revolving credit facility, (3) the ability to expand the Companys borrowing capacity and (4) other sources of capital obtained at an acceptable cost.
Debt covenants, and the Companys failure to comply with them, could negatively impact the Companys capital and financial results.
The Companys debt is subject to restrictive debt covenants that limit the Companys ability to engage in certain activities
that could otherwise benefit the Company. These debt covenants include restrictions on the Companys ability to enter into certain contracts or agreements, which may limit the Companys ability to make dividend or other payments, secure
other indebtedness, enter into transactions with affiliates and consolidate, merge or transfer all or substantially all of the Companys assets. The Company is also required to meet specified financial ratios under the terms of the
Companys debt agreements. The Companys ability to comply with these financial restrictions and all other covenants is dependent on the Companys future performance, which is subject to, but not limited to, prevailing economic
conditions and other factors, including factors that are beyond the Companys control, such as foreign exchange rates, interest rates, changes in technology and changes in the level of competition. As of December 31, 2017, the Company was
in compliance with all debt covenants.
Disruption, cyber attack or unforeseen problems with the security, maintenance or upgrade of the
Companys information and web-based systems could have an adverse effect on the Companys operations and financial condition.
The Company relies on its technology infrastructure and that of its software and banking partners, among other functions, to interact with suppliers, sell products and services, fulfill contract
obligations, ship products, collect and make electronic wire and check based payments and otherwise conduct business. The Companys technology infrastructure may be vulnerable to damage or interruption from, but not limited to, natural
disasters, power loss, telecommunication failures, terrorist attacks, computer viruses, unauthorized access to customer or employee data, unauthorized access to and funds transfers from Company bank accounts and other attempts to harm the
Companys systems. Any prolonged disruption to the Companys technology infrastructure, at any of its facilities, could have a material adverse effect on the Companys results of operations or financial condition.
If the Companys security measures are compromised or fail to adequately protect its technology infrastructure, research and development efforts
or manufacturing operations, the Companys products and services may be perceived as vulnerable or unreliable, the information the Companys controls and processes may be subject to unauthorized access, acquisition or modification, the
Companys brand and reputation could be damaged, the services that the Company provides to its customers could be disrupted, and customers may stop using the Companys products and services, all of which could reduce the Companys
revenue and earnings, increase its expenses and expose the Company to legal claims and regulatory actions.
The Company is in the business
of designing, manufacturing, selling and servicing analytical instruments to life science, pharmaceutical, biochemical, industrial, nutritional safety, and environmental, academic and governmental customers working in research and development,
quality assurance and other laboratory applications, and the Company is also a developer and supplier of software-based products that support instrument systems. Many of the Companys customers are in highly regulated industries. While the
Company has invested time and resources implementing measures designed to protect the integrity and security of its technology infrastructure, research and development processes, manufacturing operations, products and services, and the internal and
external data managed by the Company, there is a risk these measures will be defeated or compromised or that they are otherwise insufficient to protect against existing or emerging threats. The Company also has acquired companies, products, services
and technologies over time and may inherit risk when integrating these acquisitions into the Company. In addition, at times, the Company faces attempts by third parties to defeat its security measures or exploit vulnerabilities in its systems. These
risks will increase as the Company continues to grow and expand geographically, and its systems, products and services become increasingly digital and sensor- and web-based.