Earthlink 2015 Annual Report Download - page 58

Table of Contents
Cautionary Note Concerning Factors That May Affect Future Results
The Management's Discussion and Analysis and other portions of this Annual Report on Form 10-K include "forward-looking" statements (rather than historical
facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described. Although we believe that the expectations
expressed in these forward-looking statements are reasonable, we cannot promise that our expectations will turn out to be correct. Our actual results could be
materially different from and worse than our expectations. With respect to such forward-looking statements, we seek the protections afforded by the Private
Securities Litigation Reform Act of 1995. These risks include, without limitation (1) that we may not be able to execute our strategy to successfully transition to a
leading managed network, security and cloud services provider, which could adversely affect our results of operations and cash flows; (2) that we may not be able
to increase revenues from our growth products and services to offset declining revenues from our traditional products and services, which could adversely affect
our results of operations and cash flows; (3) that if we are unable to adapt to changes in technology and customer demands, we may not remain competitive, and
our revenues and operating results could suffer; (4) that failure to achieve operating efficiencies and otherwise reduce costs would adversely affect our results of
operations and cash flows; (5) that we may have to undertake further restructuring plans that would require additional charges; (6) that we may be unable to
successfully divest non-strategic products, which could adversely affect our results of operations; (7) that acquisitions we complete could result in operating
difficulties, dilution, increased liabilities, diversion of management attention and other adverse consequences, which could adversely affect our results of
operations; (8) that we face significant competition in our business markets, which could adversely affect our results of operations; (9) that failure to retain existing
customers could adversely affect our results of operations and cash flows; (10) that decisions by legislative or regulatory authorities, including the Federal
Communications Commission, relieving incumbent carriers of certain regulatory requirements, and possible further deregulation in the future, may restrict our
ability to provide services and may increase the costs we incur to provide these services; (11) that if we are unable to interconnect with AT&T, Verizon and other
incumbent carriers on acceptable terms, our ability to offer competitively priced local telephone services will be adversely affected; (12) that the continued decline
in switched access and reciprocal compensation revenue will adversely affect our results of operations; (13) that failure to obtain and maintain necessary permits
and rights-of-way could interfere with our network infrastructure and operations; (14) that if our larger carrier customers terminate the service they receive from us,
our wholesale revenue and results of operations could be adversely affected; (15) that we obtain a majority of our network equipment and software from a limited
number of third-party suppliers; (16) that our commercial and alliance arrangements may not be renewed or may not generate expected benefits, which could
adversely affect our results of operations; (17) that our consumer business is dependent on the availability of third-party network service providers; (18) that we
face significant competition in the Internet access industry that could reduce our profitability; (19) that the continued decline of our consumer access subscribers
will adversely affect our results of operations; (20) that lack of regulation governing wholesale Internet service providers could adversely affect our operations;
(21) that cyber security breaches could harm our business; (22) that privacy concerns relating to our business could damage our reputation and deter current and
potential users from using our services; (23) that interruption or failure of our network, information systems or other technologies could impair our ability to
provide our services, which could damage our reputation and harm our operating results; (24) that our business depends on effective business support systems and
processes; (25) that if we, or other industry participants, are unable to successfully defend against disputes or legal actions, we could face substantial liabilities or
suffer harm to our financial and operational prospects; (26) that we may be accused of infringing upon the intellectual property rights of third parties, which is
costly to defend and could limit our ability to use certain technologies in the future; (27) that we may not be able to protect our intellectual property; (28) that we
may be unable to hire and retain sufficient qualified personnel, and the loss of any of our key executive officers could adversely affect us; (29) that unfavorable
general economic conditions could harm our business; (30) that government regulations could adversely affect our business or force us to change our business
practices; (31) that our business may suffer if third parties are unable to provide services or terminate their relationships with us; (32) that we may be required to
recognize impairment charges on our goodwill and other intangible assets, which would adversely affect our results of operations and financial position; (33) that
we may have exposure to greater than anticipated tax liabilities and we may be limited in the use of our net operating losses and certain other tax attributes in the
future; (34) that our indebtedness could adversely affect our financial health and limit our ability to react to changes in our business and industry; (35) that we may
require substantial capital to support business growth, and this capital may not be available to us on acceptable terms, or at all; (36) that our debt agreements
include restrictive covenants, and failure to comply with these covenants could trigger acceleration of payment of outstanding indebtedness; (37) that we may
reduce, or cease payment of, quarterly cash dividends; (38) that our stock price may be volatile; (39) that provisions of our certificate of incorporation, bylaws and
other elements of our capital structure could limit our share price and delay a change of control of the company; and (40) that our bylaws designate the Court of
Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which
could limit our stockholders’ flexibility in obtaining a judicial forum for disputes with us or our directors, officers or employees. These risks and uncertainties are
described in greater detail in Item 1A of Part I, "Risk Factors."
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