Shutterfly 2010 Annual Report Download - page 27

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Please find page 27 of the 2010 Shutterfly annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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Under the Sarbanes-
Oxley Act and the rules and regulations of The NASDAQ Stock Market, we are required to maintain a board of
directors with a majority of independent directors. These rules and regulations may make it more difficult and more expensive for us to maintain
directors’ and officers’
liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to maintain
coverage. If we are unable to maintain adequate directors’ and officers’
insurance, our ability to recruit and retain qualified directors and
officers, especially those directors who may be considered independent for purposes of NASDAQ rules, will be significantly curtailed.
If affordable broadband access does not become widely available to consumers, our revenue growth will likely suffer.
Because our business currently involves consumers uploading and downloading large data files, we are highly dependent upon the
availability of affordable broadband access to consumers. Many areas of the country still do not have broadband access, and the cost of
broadband access may be too expensive for many potential customers. To the extent that broadband access is not available or not adopted by
consumers due to cost, our revenue growth would likely suffer.
Our stock price may be volatile or may decline regardless of our operating performance.
The market price of our common stock may fluctuate significantly in response to numerous factors, many of which are beyond our
control. In particular, the stock market as a whole recently has experienced extreme price and volume fluctuations that have affected the market
price of many technology companies in ways that may have been unrelated to those companies’
operating performance. Factors that could cause
our stock price to fluctuate include:
●
Economic downturns and market conditions or trends in our industry or the macro
-
economy as a whole;
●
price and volume fluctuations in the overall stock market;
●
changes in operating performance and stock market valuations of other technology companies generally, or those in our industry in
particular;
●
the financial projections we may provide to the public, any changes in these projections or our failure to meet these projections;
●
changes in financial estimates by any securities analysts who follow our company, our failure to meet these estimates or failure of those
analysts to initiate or maintain coverage of our stock;
●
ratings downgrades by any securities analysts who follow our company;
●
the public
’
s response to our press releases or other public announcements, including our filings with the SEC;
●
announcements by us or our competitors of significant technical innovations, acquisitions, strategic partnerships, joint ventures or
capital commitments;
●
introduction of technologies or product enhancements that reduce the need for our products;
●
impairment or loss in value of our investments in auction rate securities;
●
the loss of key personnel;
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