Hypercom Corporation Annual Report - CiteSeer

espect of the related indebtedness. If a default occurs, the affected lenders could elect to declare the indebtedness, together with
accrued interest and other fees, to be immediately due and payable.
We may be required to incur additional debt to meet the future capital requirements of our business. Should we be required to
incur additional debt, the restrictions imposed by the terms of our current and future debt arrangements could adversely affect our
financial condition and our ability to respond to changes in our business.
If we incur additional debt, we may be subject to the following risks:
• our vulnerability to adverse economic conditions and competitive pressures may be heightened;
• our flexibility in planning for, or reacting to, changes in our business and industry may be limited;
• we may be sensitive to fluctuations in interest rates if any of our debt obligations are subject to variable interest rates; and
• our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general
corporate purposes or other purposes may be impaired.
We cannot be assured that our leverage and such restrictions will not materially and adversely affect our ability to finance our
future operations or capital needs or to engage in other business activities. In addition, we cannot be assured that additional financing
will be available when required or, if available, will be on terms satisfactory to us.
The current condition of the credit markets may not allow us to secure financing for potential future activities on satisfactory
terms, or at all.
Our existing cash and short-term investments are available for operating requirements, strategic investments, acquisitions of
companies or products complimentary to our business, the repayment of outstanding indebtedness, repurchases of our outstanding
securities and other potential large-scale needs. While we believe existing cash and short-term investments, together with funds
generated from operations, should be sufficient to meet operating requirements for the foreseeable future, we may also consider
incurring additional indebtedness and issuing additional debt or equity securities in the future to fund potential acquisitions or
investments, to refinance existing debt or for general corporate purposes. As a result of recent subprime loan losses and write-downs,
as well as other economic trends in the credit markets, we may not be able to secure additional financing for future activities on
satisfactory terms, or at all, which may adversely affect our financial condition and results of operations.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
The Americas
Our current corporate headquarters building is located in Scottsdale, Arizona. The facility is 48,650 square feet, and the lease for
this facility expires on June 23, 2018; however, we have the right to terminate the lease on June 23, 2015, provided we repay all
unamortized tenant improvement costs and commission fees for unpaid rent. Our corporate headquarters serves as a shared cost center
for all four of our geographic business segments.
In the U.S., we also lease offices in Atlanta, Georgia (currently subleased, which sublease expires in April 2010) and Savannah,
Georgia, as well as a storage facility in Phoenix, Arizona. Internationally, we lease facilities in Brazil, Chile, Mexico and Puerto Rico
for sales, support, representation, and research and development activities.
We also own an approximately 102,000 square foot facility in Brazil that is utilized for administrative, final assembly, warehouse,
distribution, and sales and support services. We are currently soliciting buyers for this facility with plans to relocate to another site in
Brazil.
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