Classmates.com 2009 Annual Report Download - page 30

Table of Contents
As part of such investigation, we received a request for information from the committee, and we have cooperated with such request. In addition,
we have received a civil investigative demand from the Attorney General of the State of Washington and subpoenas from the Attorney General
of the State of New York regarding their respective investigations into such practices and the companies that have engaged in them, including us.
We have been cooperating with the investigations, but we cannot predict their outcome or their potential implications for our business. There are
no assurances that additional governmental investigations or other legal actions will not be instituted in connection with our former post-
transaction sales practices or other current or former business practices. Enforcement actions or changes in enforcement policies and procedures,
the adoption of new laws or regulations, or our failure to comply with existing laws, including those of foreign countries in which we operate,
could decrease our revenues and increase the costs of operating our business. To the extent that our services and business practices change as a
result of claims or actions by governmental agencies, changes in laws and regulations, or claims or actions by private parties, our business,
financial condition, 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 businesses and results of
operations.
Our businesses operate in a number of countries outside the U.S. Conducting international operations involves risks and uncertainties,
including:
•
adverse fluctuations in currency exchange rates;
•
potentially adverse tax consequences, including the complexities of foreign value
-
added taxes and restrictions on the repatriation
of earnings;
•
increased financial accounting, tax and reporting burdens and complexities;
•
disruption of our ongoing business and significant diversion of management attention from day
-
to
-
day responsibilities;
• localization of our services, including translation into foreign languages and adaptation for local practices and regulatory
requirements;
•
lack of familiarity with, and unexpected changes in, foreign regulatory requirements;
• longer accounts receivable collection cycles;
• difficulties in managing and staffing international operations;
•
the burdens of complying with a wide variety of foreign laws, regulations and legal and regulatory standards;
•
political, social and economic instability abroad, terrorist attacks and security concerns in general; and
• reduced or varied protection for intellectual property rights.
The occurrence of any one of these risks could negatively affect our international operations, our key business metrics, and our financial
results.
Our businesses could be shut down or severely impacted by a catastrophic event.
Our businesses could be materially and adversely affected by a catastrophic event. A disaster such as a fire, earthquake, flood, power loss,
terrorism, or other similar event, affecting any of our facilities, data centers or computer systems, or those of our third-
party vendors, could result
in a significant and extended disruption of our operations and services. Any prolonged disruption of our services due to these or other events
would severely impact our businesses. We do not carry flood insurance for one of
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