The goal of this paper is to analyze the effect of nonlinearities on the performance of direct-sequence spread spectrum systems in the context of electromagnetically diverse applications. Inter-modulation products due to nonlinear amplification are analyzed and the effect of nonlinearities is illustrated by means of a computer simulation result. For the performance measure, bit-error rate (BER) is considered to assess the effect of in-band intermodulation interference. The findings of this study will be of benefit to the waveform diversity community. This community concerned with assessing the effects of multiple RF sensor and communication systems used for enhancing cooperative target tracking and engagement. This involves multiple radars and communication systems that process acquired information in real time. The optimum performance, operation and availability of these systems are assured through the application of adaptive spread spectrum waveforms and electromagnetic diversity schemes derived for the RF communications problem.