NetZero 2011 Annual Report Download - page 31

Table of Contents
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 foreign 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 and proprietary rights.
The occurrence of any one of these risks could negatively affect our international operations, our key business metrics, and our financial
results.
We may reduce or stop paying quarterly cash dividends on our common stock.
The payment of future dividends is discretionary and is subject to determination by our Board of Directors each quarter following its review
of our financial condition, results of operations and cash flows and such other factors as are deemed relevant by our Board of Directors. Our cash
flows have been declining, and we expect our cash flows to continue to decline. Declines in our cash flows, changes in our business needs,
including working capital and funding for business initiatives or acquisitions, or changes in tax laws relating to dividends, among other factors,
could cause our Board of Directors to decide to reduce or cease the payment of dividends in the future. We cannot assure you that we will not
decrease or discontinue quarterly cash dividends, and if we do, our stock price could be negatively impacted.
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, or a system
interruption or delay that slows down the Internet or makes the Internet or our websites temporarily unavailable, 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 certain of our facilities, and the property, business interruption and other insurance
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