Classmates.com 2008 Annual Report Download - page 29

Table of Contents
which would negatively impact our financial condition and results of operations. We have experienced impairment charges in the past, and in the
fourth quarter of 2008, we recorded material impairment charges related to our FTD segment's goodwill and indefinite-lived intangible assets.
Given the current economic environment and the uncertainties regarding the impact on the our business, there can be no assurance that our
estimates and assumptions regarding the duration of the ongoing economic downturn, or the period or strength of recovery, made for purposes of
our goodwill impairment testing will prove to be accurate predictions of the future. If our assumptions regarding forecasted revenue or growth
rates of certain reporting units are not achieved, we may be required to record additional impairment charges in future periods. In addition, from
time to time, we record assets on our balance sheet that, due to changes in value or in our strategy, may have to be expensed in future periods.
Write-downs or impairments of assets, whether tangible or intangible, could adversely and materially impact our financial condition and results
of operations.
Our ability to operate our business could be seriously harmed if we lose members of our senior management team or other key
employees.
Our business is largely dependent on the efforts and abilities of our senior management, particularly Mark R. Goldston, our chairman,
president and chief executive officer, and other key personnel. Any of our officers or employees can terminate his or her employment
relationship at any time. The loss of any of these key employees or our inability to attract or retain other qualified employees could seriously
harm our business and prospects. We do not carry key-person life insurance on any of our employees.
Changes in laws and regulation changes and new laws and regulations may adversely affect our results of operations.
We are subject to a variety of international, federal, state, and local laws and regulations, including, without limitation, those relating to
taxation, bulk email or "spam," advertising, user privacy and data protection, and consumer protection. Compliance with the various laws and
regulations, which in many instances are unclear or unsettled, is complex. Any changes in such laws and regulations, the enactment of any
additional laws or regulations, failure to comply with, or increased enforcement activity of, such laws and regulations, could significantly impact
our products and services, our costs, or the manner in which we conduct business, all of which could adversely impact our results of operations
and cause our business to suffer.
The FTC and certain state agencies have investigated Internet companies, including us, in connection with consumer protection and privacy
matters. Federal, state and foreign governments have also enacted consumer protection laws, including laws protecting the privacy of consumers'
nonpublic personal information. Our failure to comply with existing laws, including those of foreign countries in which we operate, the adoption
of new laws or regulations or changes in enforcement policies and procedures could increase the costs of operating our business. To the extent
that our services and business practices change as a result of changes in regulations or claims or actions by governmental agencies, such as the
FTC, or claims or actions by private parties, our business, financial position, results of operations, and cash flows could be materially and
adversely affected.
We face risks relating to operating and doing business internationally that could adversely affect our business and results of operations.
Our businesses operate in a number of countries outside the U.S. Conducting international operations involves risks and uncertainties,
including:
• fluctuations in currency exchange rates;
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