Forward-looking statements included herein are based on certain key expectations and assumptions made by the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to: market, industry and general economic conditions; the operations of the businesses of the Company continuing on a basis consistent with prior years or current expectations; growth in demand for the products and services of the Company’s businesses; the ability of the Company to access financing from time to time on favorable terms; the continuation of executive and operating management or the non-disruptive replacement of them on competitive terms; currency exchange and interest rates being reasonably stable at current rates; the realization of expected benefits and synergies from the Company’s acquisition of DigitalGlobe, Inc.; compliance with the U.S. regulatory requirements and the requirements of the National Industrial Security Program Operating Manual related to the implementation of the security control agreement and the facility clearance for the offices of certain subsidiaries of the Company; the Company’s continuing ability to effectively service customers and there being no adverse changes to customer priorities and funding levels; the Company’s continuing ability to implement the enterprise improvement initiatives; the Company’s continuing ability to meet technical specifications and complete the contracts with minimal cost overrun; the Company building its satellites to reliable design specifications; the accuracy of the Company’s current plans and forecasts; and the accuracy of management’s current assessment of the outcome of legal proceedings involving the Company. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions.
Additionally, forward-looking statements are subject to a number of
risks and uncertainties that could cause actual results and expectations
to differ materially from the anticipated results or expectations
expressed herein. The Company cautions readers that should certain risks
or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary significantly from those expected.
The risks that could cause actual results to differ materially from
current expectations include, but are not limited to: the loss or
termination in scope of any one of the Company’s primary contracts; the
Company’s ability to generate a sustainable order rate for its satellite
manufacturing operations in a market where the number of satellite
construction contracts awarded varies annually; changes in government
policies, priorities, regulations, use of commercial data providers to
meet U.S. government imagery needs, government agency mandates, funding
levels through agency budget reductions, the imposition of budgetary
constraints or a decline in government support or deferment of funding
for programs in which the Company or its customers participate; changes
in U.S. government policy regarding use of commercial-data providers, or
material delay or cancellation of certain U.S. government programs; the
Company’s ability to effectively execute its U.S. government access plan
and realize anticipated benefits of contract awards from the U.S.
government and failure by the Company to comply with U.S. regulations
could result in penalties or suspension and failure by the Company to
maintain the relevant clearances and approvals could limit its ability
to operate in the U.S. market; certain U.S. subsidiaries of the Company
are subject to the requirements of the National Industrial Security
Program Operating Manual for their facility security clearance, which is
a prerequisite for their ability to obtain and perform on classified
contracts for the U.S. government; risks inherent with performance on
fixed price contracts, particularly the ability to contain cost overruns
and schedule delays; foreign and domestic resellers fail to market or
sell the Company’s products and services successfully; inability of the
Company’s limited vendors to provide key products and services; quality
issues, failure of systems to meet performance requirements, potential
for product liability, or the occurrence of defects in products or
systems could result in lost revenue and harm to the Company’s
reputation; occurrence of delays in obtaining regulatory approvals,
satellite damage or destruction during launch, launch failures, or
incorrect orbital placement; failure of the Company’s satellites to
operate as intended; natural disasters or other disruptions affecting
the Company's operations and resulting in an interruption or failure of
the Company’s infrastructure; failure of the Company or inability to
protect and maintain the Earth-imagery content stored in its
ImageLibrary; loss of, or damage to, a satellite before the end of its
expected operational life and the failure to obtain data or alternate
sources of data for the Company’s products; reliance on information
technology systems and threats of disruption from security breaches and
cyber-attacks; limited insurance coverage, pricing and availability;
failure to anticipate changes in technology, technical standards and
offerings or comply with the requisite standards, or failure to maintain
technological advances and offer new products to retain customers and
market position; potential infringement of the intellectual property
rights of others and inadequate protection of the Company’s intellectual
property rights; significant competition with competitors that are
larger or have greater resources, and where foreign currency
fluctuations may increase competition from the Company’s non-United
States competitors; changes in regulations, telecommunication standards
and laws in the countries in which the Company conducts business; export
restrictions or the inability to obtain export approvals; failure to
obtain necessary regulatory approvals and licenses, including those
required by the United States government; a competitive advantage for
competitors not subject to the same level of export control or economic
sanctions laws and regulations faced by the Company; exposure to fines
and/or legal penalties under U.S. and Canadian securities regulations;
exposure to fines and/or legal sanctions under anti-corruption laws; the
Company’s ability to attract and retain qualified personnel; the
Company’s ability to receive satellite imagery, including from third
parties for resale and performance issues on the Company’s on-orbit
satellites; the Company’s failure to raise adequate capital to finance
its business strategies, including funding any future satellite;
uncertainty in financing arrangements and failure to obtain required
financing on acceptable terms, or credit agreements may contain
restrictive covenants which may be limiting; failure to identify,
acquire, obtain the required regulatory approvals, or profitably manage
additional businesses or successfully integrate any acquired businesses,
products or technologies into the Company without substantial expenses,
delays or other operational, regulatory, or financial problems; the
Company’s ability to obtain certain satellite construction contracts
depends, in part, on its ability to provide the customer with partial
financing of working capital and any financing provided by the Company
may not be repaid or the Company may be called upon to make payments;
certain customers are highly leveraged and may not fulfill their
contractual payment obligations, including vendor financing; the risk
that the Company will not be able to access export credit financing to
facilitate the sale of the Company’s communication satellites and other
products to non-Canadian and non-United States customers; exposure to
foreign currency fluctuations; and failure to comply with environmental
regulations.