Support.com 2006 Annual Report Download - page 23

• loss of alliance partners;
• failure to realize the potential financial or strategic benefits of the acquisition; and
• failure to successfully further develop the combined technology, resulting in the impairment of amounts recorded as goodwill or
other intangible assets.
We must compete successfully in the market for software and services that resolve technology problems or our business will
suffer.
We compete in markets that are highly competitive, subject to rapid change and significantly affected by new product
introductions and other market activities of industry participants. We compete with a number of companies in the market for
automated delivery of support and service automation and other vendors who may offer products or services with features that
compete with specific elements of our software products and services. In addition, our customers and potential customers have
developed or may develop internally similar software systems.
The markets for our products are still rapidly evolving, and we may not be able to compete successfully against current and
potential competitors. Our ability to expand our business will depend on our ability to maintain our technological advantage, introduce
timely enhanced products to meet growing support needs, deliver on−going value to our customers and scale our business. Our
potential competitors may have longer operating histories, significantly greater financial, technical and other resources, stronger
strategic alliances or greater name recognition than we have. Competition in our markets could reduce our market share or require us
to reduce the price of products and services, which could harm our business, financial condition and operating results.
As we further enter the market for consumer technology support, we expect to compete against a set of competitors different than
the competitors against whom we have historically competed, including electronics retailers offering on−site technology support
services, companies offering online technology support services and companies offering local technology support services. Certain of
these anticipated competitors have longer operating histories, significantly greater financial, technical and other resources, stronger
strategic alliances or greater name recognition than we have.
The loss of key personnel and the integration of new management may affect our ability to achieve our business goals.
Our success depends on the skills, experience and performance of our senior management, engineering, sales, marketing and other
key personnel. The loss of the services of any of our executive officers or other key personnel at the Senior Vice President or Vice
President level, could harm our business and our ability to achieve our business goals. In addition, many members of senior
management have been appointed within the last year. Our success will depend to a significant extent on the ability of these
executives to function effectively in their new roles and to work together successfully. If these executives do not function and work
together successfully or if we lose the services of one or more of our executives or key employees, our business could be harmed.
Our exposure to the credit risks of our customers and resellers could adversely affect our operating results and financial
condition.
To sell to some of our customers, we may be required to take risks of uncollectible accounts. We may be exposed to similar risks
relating to third party resellers and other sales partners, as we intend to increasingly utilize such parties as we expand into new
geographic regions. Additionally, as we have expanded our business internationally, we have experienced longer payment terms and
collection cycles from customers outside the United States. While we monitor these situations carefully and attempt to take
appropriate measures to protect ourselves by recognizing revenue upon collection of accounts from
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Source: SUPPORTSOFT INC, 10−K, March 16, 2007