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Formed some time ago, ďLLĒ Group Inc operates through subsidiaries to manufacture highly-engineered components that are used to control frequency of signals in electronic circuits. Devices are developed for original equipment manufacturers (OEMs) that utilize them primarily for equipment in telecommunications and network industries.
LL, a smaller centralized company, shared in the foresight of those larger groups to explore foreign opportunities for growth within a mature industry. LL expanded internationally by developing facilities in other countries and gaining new customers. Diversifying to international markets has proven beneficial for LL but sales are now reliant on one region. The 2009 export sales of LL accounted for 56.5% of the firmís consolidated revenues compared to 50.7% in 2008. Additionally 15.7% of LLís revenue (15.9% in 2008) was attributable to the finished products supplied by one independent manufacturer. These trends cause concern because it signifies the company is dependent on the continued vitality of one region. Any negative changes to the business climate in that region will severely impact future earning potential.